Legal Risk Opportunity in Employment Memo

MEMORANDUM

TO: NewCorp Management

FROM:

DATE: July 11, 2010

SUBJECT: Legal Encounters

ISSUE

NewCorp is a company like all others that must operate within legal guidelines to prevent negative image branding and to prevent legal action that might impact their bottom line. With handling issues in regards to the legal encounters with employees there are specific regulations and laws that exist to protect the employer employee relationship.

DISCUSSION

Legal Encounter #1: In the situation with Pat NewCorp has the right to protect the sustainability of their company. Given that Pat was not performing to the standards of the company they are within their legal right to terminate Pat’s employment. The major liability here is that the employee manual outlines a corrective action policy, there is an implied contract created between the employer and the employee. In accordance with the ruling in the case of Pine River State Bank v. Mettilee, “The court found that…the "Disciplinary Policy" section was sufficient. The court analyzed that provision according to traditional requirements for the creation of a contract: offer, acceptance, and consideration for the contract: The court found that the employer offered employment subject to the terms in the employee handbook; the employee accepted the employment offer by showing up for work. The employee's labor was the consideration in support of the contract. Thus, argued the court, the employer breached the employment contract by terminating the employee without following the specific procedures outlined in the handbook that created the implied contract (Muhl, 2001).” With a case such as this setting a legal precedent the issue becomes the risk of litigation of Pat against NewCorp, and with a ruling in the favor of an employee there is a definite chance that the expenses for NewCorp become much greater than retaining Pat and following procedure. As for the assumption of retaliation there is no legal...