Institute for

Conflict Resolution

Making Your Company Sue-Proof

If a fired employee can prove that there was even an implied contractual relationship between employer and employee, any legal cases may be much harder for you to win. Such a possibility can be eliminated, if you take appropriate action and integrate the following practices into company policy:

1. Review recruitment ads and brochures, company handbooks and manuals. Change "permanent employment" to "full-time employment" and "discharge for good cause " to "discharge at management's discretion." Manuals and handbooks should state: "This is not a contract."
2. Instruct those involved in recruiting not to oversell the company. Avoid statements like "you have job security as long as you perform well." You need to refute the employee's contention that he was promised permanent employment during the initial interview process.
3. Consider inserting in employment applications a statement to be signed by applicants that their possible employment with the firm is strictly at will. When the labor market is tight and you are anxious to hire, don't make the mistake of leaving out the reminder concerning your right to fire. You'll be glad you did, especially if you mistakenly hired "someone from hell."
4. When you need to terminate, there will be less chance of a violent reaction or sabotage, either immediately or at a later date if you:

A. Give sufficient notice during which time he/she continues to collect salary and can look for another position.
B. Avoid asking the immediate supervisor to inform the employee that his services are no longer required. Instead a committee should be given this task, which is to be handled with delicacy and compassion. During this interview there should be no protracted discussion. The basis for termination should be established during the regular job performance evaluations.
C. Wherever possible the fired employee should be assisted in making contact with other firms. Goodwill is not easy to create when you fire someone, but every effort should be made to give him/her the dignity they need. When anger and resentment are allowed to fester, violent behavior is not far behind.

5. If you ask interviewees any of the following questions, your job application may be a legal land mine:

A. Are you married? Divorced?
B. If you are single are you living with anyone?
C. Do you have children? If so, how many and what are their ages?
D. Do you own or rent your home?
E. What church do you attend?
F. How old are you?
G. Do you have any debts?
H. Do you belong to any political organizations?
I. What kind of insurance do you have?
J. Do you suffer from any disability?
K. Do you plan to get married?
L. Do you intend to start a family?
M. What do you intend to do with your children during business hours?
N. Do you feel comfortable supervising men/women?
O. What would you do if your husband were transferred?
P. Do you think you could perform the job as well as a man?
Q. Are you likely to take off time under the Family and Medical Leave Act?
(Questions K through Q are often asked of a woman.)

***Please note that this web site is not engaged in rendering legal advice. If legal assistance is required, the services of a competent professional person should be sought.

drsol@workconflicts.com