Question

Supervisors report that discharging an employee is one of the toughest tasks they perform as managers. Furthermore, termination for absenteeism can be particularly difficult due to the causes of absenteeism and, in some cases, the past work record of the employee. This case illustrates a typical absentee problem faced by management.

Hattie Mae was employed by Beach Electrical Systems for nine years. For the first six years of her employment, she was considered a model employee. Hattie’s annual performance reviews were always above average or exceptional, and she was described by her managers as a loyal and dedicated employee. However, things changed rapidly in 2014 when Hattie became, as her current manager stated, "an absentee problem."

According to HR department records, in 2018 and 2019, Hattie was absent 12 percent and 19 percent of the time, respectively. Her worst year was 2020, when she was absent 27.2 percent of the time. However, unlike other absent employees, Hattie was always absent because of genuine and verifiable illnesses or work-related accidents. Hattie’s supervisor had talked to her periodically about her attendance problem, but she was never given an official warning notice—oral or written—that she would be fired if her attendance record did not improve.

The incident that caused her termination occurred on Thursday, May 20, 2021. On that day, her manager notified all department employees (eight in total) that they would need to work overtime on Saturday, May 22, 2021, to complete a critical order for a highly valued and important customer. All employees agreed to work on Saturday, except Hattie, who cited "personal reasons," which she refused to disclose, for her refusal to work.

On Monday, May 24, 2021, her supervisor, with concurrence from the department manager, terminated her employment for "unsatisfactory attendance." Hattie did not dispute the attendance record; however, she filed a grievance through the company’s alternative dispute resolution procedure alleging that management did not discharge her according to the organization’s published disciplinary policy. She pointed to the section in the policy manual that states, "Employees will be warned for absenteeism before they are terminated." Hattie maintained that she was never officially warned as required. Management replied that Hattie was well aware of her absentee problem but that warning her would have served no purpose since she was unable to prevent her continued illnesses from occurring. Additionally, her refusal to work overtime on Saturday was a further indication of her lack of concern for her job or the welfare of the company.

Which of these is the best way for employers to lessen their vulnerability to implied contract lawsuits?

a. telling employees their jobs are secure as long as they perform satisfactorily and are loyal to the organization
b. training managers to continually remind employees that they may be fired at any time for any reason
c. having written proof that employees have read and understood the employment-at-will disclaimers provided to them
d. stating in the employee handbook that employees will not be terminated without the right of defense or access to an appeal procedure

Answer 1

Employers can lessen their vulnerability to implied contract lawsuits by having documented evidence that employees have read and understood employment policies, ensuring clear communication about the consequences of policy violations, and providing training to managers.

Step-by-step explanation:

To reduce vulnerability to implied contract lawsuits, the best practice for employers is to have concrete, documented policies and procedures concerning employee termination. This involves having written proof that employees have read, understood, and acknowledged the employment-at-will disclaimers provided to them.

In the case of Hattie Mae, it is vital that Beach Electrical Systems can demonstrate that Hattie was aware of her attendance problem, had received clear communication regarding the potential consequences, and access to the company’s disciplinary policy. This documentation should include any official warnings as policies state. It is also beneficial to ensure all employees understand their rights and the appeal processes available to them, as outlined in an employee handbook. Furthermore, managers should be properly trained in handling disciplinary issues to avoid misunderstandings or non-compliance with company policies.