Question

Carlson Mamet interviewed for a position with KAC, Inc.  During the interviews, Mamet questioned the permanency of the job and was told that “as long as employees do a commendable job, they have no fear of being laid off” and “employees are never laid off unless there is due cause.”  In March of 2004, Mamet signed a one-page employment agreement with KAC.  The first paragraph provided that KAC would employ Mamet “for a length of time determined by the will of KAC and Mamet.”  In June 2008, KAC began terminating many employees.  On March 8, 2009, Mamet was told he was terminated as part of the staff reduction.  By June 2010, KAC had laid off about 9,000 employees.  Mamet sued KAC for breach of the agreement to provide permanent employment to him.  Will Mamet succeed in proving that KAC breached their agreement with him?

Answer 1

This is the case of the Employment Agreement.

Employee Agreement is the traditional document used in relationships among employers and employees for the purpose of laying out rights, responsibilities, etc.

So, in the above case, Mamet signed a one-page Employment Agreement in which it is mentioned that KAC would employ Mamet for a length of time determined by the will of KAC and Mamet.

But KAC started terminating the employees due to staff reduction and Mamet was also laid off due to staff reduction. Staff reduction in an organization happens for a cause.

So, there is an advantage in the Employment Agreement that the employer can terminate its employees due to cause or for a specific reason.

As in the above case the company has a reason of staff reduction. And, there was no point of permanent employment in Employment Agreement signed by Mamet. There is no breaching by KAC. Therefore, Mamet will not get succeed in proving that KAC breached their agreement with him.