Broken Employment Contract
Did Wayne have an employment contract, either oral or written, with EcoCare? Why or why not?
Wayne had an oral employment contract with EcoCare. An oral contract existed for one reason that Bell told Wayne during the pre-employment period that he was assured of staying on the job provided his performance was satisfactory. Oral contracts are “made by the verbal mutual consent by two or more parties to the performance of clearly stated promises
.” It is clear from the findings of Human Resource Department’s Investigation that Bell and Wayne had mutual consent which led Bell to make a job offer to Wayne which he accepted. This oral contract was therefore enforceable and remained valid as long as Wayne kept to the promise of performance. It should also be noted that verbal promises made to employees by employers, if reasonable, can make enforceable contract (Findlaw, n.d.). However, Wayne cannot claim to have had a written contract since the supervisory manual that he was given was meant to be an aid in supervising persons in their charge and not as a record of the contract terms of an employee’s hiring, according to the EcoCare’s human resource department.
2. What problems, if any, do you see with EcoCare’s pre-employment process?
The pre-employment process at EcoCare has one serious problem which is lack of clear details on the terms of employment. This problem is aggravated by using oral contract. Generally remembering terms of any agreement is very important including employment contracts and this can be done best by having them in writing. An oral contract usually causes a lot of confusion, makes the terms of employment unclear, and use human memory as the only source for any agreement. Oral contracts are also commonly used when the employment period is less than one year and not when the company intends to have an employ for so long.
3. Can an employer’s written human resource policies ever be construed as a contract between an employer and an employee?
Written human resource policies of a company can be construed as a contract between an employer and an employee by courts and this has actually caused worry among employers. Written policies can be used against employers in litigation with employees claiming that they are contracts that must be adhered to. However, for such a policy to be considered by courts then it has must be in a clear language which could make an employee believe that a contractual offer was being made, it must be distributed to employees, and the employee shows his or her acceptance of the offer by commencing or continuing to for the employer (Koch and Rita, 1996).
4. Was Wayne terminated for “just cause”? Why or why not?
Wayne’s termination was for a “just cause.” Even though he had a good performance history with the company, the accusations against him would result to termination according to the supervisory policy. First, the accusation of “setting back” of odometers that he could not explain amounted to dishonesty which was enough reason for immediate termination. He is also accused of insubordination during a meeting with Bell and Findlay which also qualifies for immediate termination.
5. How can companies protect themselves against lawsuits alleging wrongful dismissal?
There are steps that a company can take to protect themselves against lawsuits by both avoiding employee lawsuits and making it easier for the company to prevail in case a lawsuit is filed. In summary these steps include; documenting and keeping a record of all events that happen between the employee and the employer as that can be the only proof, honestly evaluating employee performance and immediately addressing issues that arise in relation to performance, and the most significant of all is preserving “at-will” employment rights and this should be clearly spelt out in the offer letters and employee handbooks. This status should be acknowledged by employees and signed in writing for recording purposes (Rosenblatt, 2006).
References
Armstrong, M. (1999). Handbook of Human Resource Management Practice. Kogan Page.
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