MHR 523 Lecture Notes - Lecture 6: Punitive Damages, Wrongful Dismissal, Quasi-Contract
2 Jul 2018
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Chapter 15: Managing Employee Separations
Employee - Employer Relationship
● Employment contract
○ Formal agreement between employer and employee.
○ Employee cannot be prematurely dismissed without just cause if a term is
specified.
● Implied contract
○ Indefinite period of time, may be terminated by either party with reasonable
notice.
○ More common
Employee Separations
Turnover
● The termination of an individual’s employment with the organization.
Voluntary: Quit / Retirement / Resignation.
● Reasons:
○ Suboptimal hiring practices
○ Difficult managerial style
○ Lack of recognition
○ Lack of competitive compensation systems
○ Toxic workplace environments
Involuntary: Dismissal / Layoff
● Reasons:
○ Just cause (termination)
○ Financial pressures/cost cutting (layoffs - NOT PERMANENT)
○ Restructuring/change in the organization's direction (downsizing - PERMANENT)
Downsizing: activities undertaken to improve organizational efficiency, productivity, and/or
competitiveness that affect the size of the firm’s workforce, its costs, and its work processes.
● Why do organizations downsize?
○ Declining profits
○ Reduced operating costs
○ Decrease levels of management
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Document Summary
Employee cannot be prematurely dismissed without just cause if a term is specified. Indefinite period of time, may be terminated by either party with reasonable notice. The termination of an individual"s employment with the organization. Financial pressures/cost cutting (layoffs - not permanent) Restructuring/change in the organization"s direction (downsizing - permanent) Downsizing: activities undertaken to improve organizational efficiency, productivity, and/or competitiveness that affect the size of the firm"s workforce, its costs, and its work processes. Displaced employees: most would never work for their employer again, would not recommend their employers products/services, and many have considered going to the media to talk about their downsizing experience. Foundations: rules and regulations: clear expectations of acceptable behaviour, progressive discipline: warning(verbal, written), suspension, termination, appeal process: allow employee to present case. In canada, in non-unionized workplaces where employment contracts have no definite end date, employees can be dismissed for any reason (without just cause) provided that:
