Termination of Employment Contracts Lesson 27-3

What you will learn When an employee is liable for quitting a job When an employer is liable for firing an employee What rights “you” as an employee has How most employment contracts end Why the rights of At Will Employees, Express contract employees and government employees differ

How are “most” employment contracts terminated (Ended)? Clue 1: What is included in all employment agreements? Clue 2: What must be accomplished in order for both sides to get what they want done (Work for pay) Clue 3: Why is it important that “ALL” employment agreements be terminated? ANSWER: Most contracts are terminated by performance (Both sides doing what they promised)

What does “breaching a Contract” mean? When employment contracts exist, both sides take on obligations and duties Obligations are things “you” as an employee accept, as what you are responsible to do Duties are what your employer owes you, such as pay Breaching a contract means one side did not live up to their obligations or duties as agreed and can be fought for in court

At your table, discuss 4-5 obligations employees have and 4-5 duties an employer has DUTIES LIST Pay you what was agreed Benefits agreed Hours agreed Safe work environment Overtime (If hourly) Treat fairly/reasonably Obligations list Work as agreed in contract Perform timely Hours as agreed Follow business rules On time Work with others well

What rights do at will employees have in a work contract? Rights are limited, because they can be fired for “any” reason or no reason at all At will has no time limit in the agreement, so the only real agreement is pay/benefits for the agreed work Employees can leave at any time for no reason as well, so their only obligation is to complete the work agreed Pay must be made if the work is completed Only protections are based on age, discrimination laws, and overtime

What does is mean to be wrongfully discharged? Wrongful discharge means you were fired for an inappropriate reason, such as race, creed, religion, sexuality or other discrimination reasons If you are fired as an At Will employee and given a reason you disagree with, you have a right to fight it in court. Ex) Boss fires you for stealing and you didn’t steal a thing, you can force them to produce proof or fix the record If you are Discharged with Cause, it means there was a reason you were fired, such as being late, fighting, insubordination or others

Why don’t you want to be discharged for cause? Since Discharged for Cause means you did something wrong, you will need to explain this at future interviews as its on your record When you are Discharged for Cause, you are not eligible for Unemployment Most employers will only discharge an employee for cause if they have verifiable proof they can show in court (If you challenge it) Unemployment is an insurance that you can collect when out of work for up to 6 months while looking for work

Lets watch this on firing and your rights https://www.youtube.com/watch?v=N-5SDwr9aik&spfreload=10

How do Contract terms effect contract disagreements? Contract terms are anything that is agreed to within a written or spoken agreement prior to a work agreement Employee Handbooks are a common thing in most businesses Handbooks are composed of employee rules and regulations that an employee must do and items an employer promises If an employer promises “Fair Treatment” within the handbook, it may become part of the employment agreement The employee may bring this up in court if the disagreement cannot be settled at work

What happens if a contract for a specific period of time is not completed Any contract, including work agreements, that are made for a specific period of time are breached if either side terminates (ends) it before its completed “Specific reasons” why you are breaching the contract must be given “if” this is done to be legal (Discrimination, broken promises, etc) Ex) If you sign a 3 year deal with a business as a Marketing Manager then decide not to come to work for the last year, the company will claim a “breach of contract” and terminate the contract, THEN attempt to sue you in court

Are government based employment contracts different than private contracts? Any person who works for the government is called a public employee Anyone who works for anything OTHER THAN the government is called a private sector employee 80-85% of the workforce is made up of private sector employees Public sector employees are entitled to “Due Process” before they are fired from a job (More difficult to fire) Due process means they MUST be given a reason for firing and that they can appeal the decision in court Employer MUST produce proof to fire them

Watch this on due process and be prepared to tell me how “you” think this would work with an employee being fired from a job (Take notes) http://study.com/academy/lesson/due-process-taking-the-fifth-and-fourteenth-amendments.html

How is an employee able to be eligible for unemployment compensation? Unemployment is an “insurance” that you pay into when you work Its taken out of your check as a tax You are eligible for unemployment if you are discharged “without” cause Discharged without cause means you did nothing wrong but were terminated Ex) Boss says to you “I can’t afford to pay you so I need to let you go” Discharged for cause means you did something that violated the contract (Stealing, late, fighting) and you are NOT eligible to collect unemployment

Ticket out the door quiz Complete the practice quiz and turn in before end of class Review and quiz within next 3 classes