Chapter 13: Employees Rights and Discipline
The three exceptions to the employment-at-will doctrine are:
1. Violation of public policy—This exception occurs when an employee is terminated for
refusing to commit a crime; for reporting criminal activity to government authorities; for disclosing
illegal, unethical, or unsafe practices of the employer; or for exercising employment rights.
2. Implied contract—This occurs when employees are discharged despite the employer’s promise of job
security or contrary to established termination procedures. An employer’s oral or written statements
may constitute a contractual obligation if they are communicated to employees and employees rely on
them as conditions of employment.
3. Implied covenant—This exception occurs when an employer has acted with a lack of good faith and
fair dealing.
133. Briefly discuss some ways in which employers can avoid wrongful termination lawsuits.
Employers can use the following four tips to avoid wrongful termination lawsuits.
1. Terminate an employee only if there is an articulated reason. An employer should have clearly
articulated, easily understandable reasons for discharging an employee. The reasons should be stated
as objectively as possible and should reflect company rules, policies, and practices.
2. Set and follow termination rules and schedules. Make sure every termination follows a documented
set of procedures. Procedures can be from an employee handbook, a supervisory manual, or even an
interoffice memorandum. Before terminating, employees should be given notices of unsatisfactory
performance and improvement opportunities through a system of warnings and suspensions.
3. Document all performance problems. A lack of documented problems in an employee’s personnel
record may be used as circumstantial evidence of pretextual discharge if the employee is “suddenly”
discharged.
4. Be consistent with employees in similar situations. Document reasons given for all disciplinary
actions, even if they do not lead to termination. Terminated employees may claim that exception-to–
the-rule cases are discriminatory. Detailed documentation will help employers explain why these
“exceptions” did not warrant termination.
134. What is progressive discipline? How does it differ from positive discipline?
Progressive discipline is the application of corrective measures by increasing degrees. The intent is to stop the
undesired behavior by using the minimum amount of corrective action necessary. In practice, progressive
discipline starts as a low-key, informal reminder and moves through several levels of more intensive measures
until the behavior is extinguished. If the behavior cannot or will not be altered, the progression ends at in
terminating the employee. In short, using progressive discipline allows the employer several opportunities to
correct undesired employee behavior before terminating the employment relationship.