March 26, 2012
NewCorp Legal Scenarios
Legal Encounter 1
An organization has the right to fire an employee at-will. If the employee is not performing or is not providing a benefit to the organization, the organization may decide to terminate the employee. However, if documentation is provided at the time of hire stating the employee is not an at-will employee or the employee will receive a notice before termination occurs, then it can become a legal matter. In legal case 1, Pat is hired for a position that is located in another city and is required to move his family and start a new life. After Pat worked for the organization for only three months, he was given a termination notice. However, he was not provided with any warnings are reasoning. “Generally, agency and employment contracts that do not specify a definite time for their termination can be terminated at will by either the principal or the agent, without liability to the other party” (Cheeseman, 2010).
A contract was provided to Pat when he started with NewCorp. He signed a document that stated if he was not performing well or his performance was unsatisfactory he would be notified and placed on a corrective action plan. This would help him understand what he is doing wrong and how he can improve to keep his job. When Pat was given notice of termination, he was not provided with a reason and was not put on the corrective action plan. This allows Pat to sue NewCorp for not abiding to the contract that was signed by both parties. Pat also has the right to sue for wrongful termination. In this legal case, NewCorp should approach Pat with an alternative dispute resolution. The ADR that should be used for this situation should be an arbitrator or work out a settlement. To avoid these types of liabilities, NewCorp should ensure their performance policies and fire at-will...