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Human Resource Management
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Chapter 5 / Exercise 2
Human Resource Management
Valentine/Meglich/Jackson/Mathis
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been exhausted Understanding the ind. Employment contract - Since the individual employment contract is a type of contract, the general rules of contract law developed in the common law apply. - A valid contract requires ‘’mutual consideration’’ This means once an employee has commenced employment, Employer cannot unilaterally change or Introduce new terms of employment unless The employee agrees to the change and receives some new benefit in exchange - If an employer unilaterally changes a term of the employment contract, the employee can sue for breach and claim that he or she has been constructively dismissed - A constructive dismissal occurs when an employer commits a fundamental breach of the contract, such as: Eliminating an important benefit enjoyed by the employee, Reducing compensation, or
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Human Resource Management
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Chapter 5 / Exercise 2
Human Resource Management
Valentine/Meglich/Jackson/Mathis
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Demoting an employee. - In the case, the employee may treat the contract as: 1) Having been terminated by the employer 2) Quit, and 3) Sue the employer to recover either contractual notice or implied reasonable notice - To make a change to the terms of an employment contract without breaching the contract: Obtain the employee’s agreement and provide the employee with some new consideration (benefit) or Terminate the employment contract by giving the required notice and then offer a new contract on the revised terms. Dismissal of a Non-union employee: wrongful dismissal (injustifié) - Under the common law, the employer or employee can terminate the contract by: Providing the amount of notice specified in the contract Providing reasonable notice if the contract does not include a notice term - ‘’reasonable’’ is determined by the court, applying a variety of criteria: employee’s age and the availability of alternative similar employment - however, the two most important factors in assessing notice are the length of service with the employer (the longer the length the longer the period) the nature of the job performance rules governing dismissal - a non-union employer does not need a reason to dismiss an employee - it can dismiss and employee at any time, for any reason or for no reason at all (just needs to give the employee the proper contractual or reasonable notice) - an employer may also dismiss a non-union employee without any notice if: the employee has committed a serious breach of the contract (such as engaging in significant dishonesty, gross incompetence, sexual harassment) when a non-union employer dismisses an employee for cause, without notice, it is called a summary dismissal one comprehensive study of summary dismissal cases found that employers won:
- 40% of the time when charge was dishonesty, theft, substance abuse, or abusive behaviour - 54% of the time when the charge was insubordination - 65% of the time when the charge was conflict of interest of competing with the employer; and - 25% of the time when the charge was poor performance whenever an employee believed he or she should have received more notice than that provided, the employee may file a wrongful dismissal lawsuit.

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