Question

CASE 10.1 A Questionable Discharge? The next day, during a routine meeting between the In August of 2007, the employee, a 25-year-old female, president and the employee, the president placed the original answered a newspaper advertisement and accepted a full- vacation request form in front of the employee and accused the time clerical role at an hourly wage with health-care benefits employee of forging the vice president's signature approval. The available after 90 days of employment. The employee had previous continuous employment of at least three years with employee denied the accusation and the discussion escalated no history of involuntary discharge or performance issues to shouting. The employee left the office without permission for The employer, a small corporation, employed 25 workers the remainder of the day--two hours prior to closing who manufactured and sold chemical products. The com- The next morning, the employee returned and worked pany was managed by the founding individual (president), the full day with no reference to the incident. The employee his spouse vice-president), and a close friend. No formal arrived at work the following moming to find that her office had human resources, legal, or accounting functions existed in been locked. The vice president told the employee that she had house and no documented human resources policies or quit, therefore she should leave the building. The employee procedures were communicated or available to employees. calmly denied quitting, took a seat in the lobby, and indicated The company and employees did not engage in collective that she would work from there if her office was unavailable bargaining The employer called the sheriff, who escorted the employee The president delivered a satisfactory performance from the building. The employee did not pursue unemployment appraisal to the employee with a corresponding $1.50 per benefits and found other employment within 30 days. hour raise in January of 2008. The employee, at that time, declined health insurance coverage. In November of Does the employer have an exposure for terminating 2008, the employee submitted a vacation request form to the employee? Explain the vice president for signature. She also requested two Does it make a difference that the employee was an hours to be taken the following day. The vice president employee at will? approved and signed the form and returned a copy to the What potential liability does the employer have for employee. During this exchange, the employee told the compensation? vice president that the vacation time was for a prenatal Could this be viewed as a constructive discharge? doctor visit Is there an FMLA issue?

Answer 1

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1. In this case, the employer did not have an exposure for terminating the employee. This is so because no valid reason was stated before terminating the employee. The employee had taken proper permission from the VP for the holiday but she was accused of forging VP’s signature for getting the holiday. This accusation was totally baseless and there was no proof or evidence to validate the same.

2. Employment at-will is the policy which states that the company or the employer can terminate any employee at any time if the employee was hired with employment at will clause. The termination will have no specific reason or warning, stated by the employer. On similar lines, the employee will also have the same rights and will have the privilege to quit the company any time without stating any specific reason for the same, and without serving any notice period.

If the employee was hired under the employment at will clause, then the employers have full right to terminate the employee, without stating any specific reason for the same.

3. The employer will be liable for paying the compensation to the employee for the specific time period that she served the company. It is the basic right of the employee to be paid for the services offered by her to the company.

4. This cannot be considered as a case of constructive discharge or dismissal. Constructive discharge happens when the employee, voluntarily resigns from the company, as a result of the hostile work environment created by the employer. In this case, there was no voluntary resignation done by the employee and hence it does not qualify to be a case of constructive dismissal.

5. This can be considered as a violation of the FMLA as well as a case of workplace retaliation. The employee had taken proper permission for the holiday from the VP. However she was accused to have forged signatures for taking holiday. The employee had taken the leave for a medical consultation and hence it qualifies as a case of FMLA.