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BUSI 3705U

Chapter 21 Legal Environment of Business Terminating the Employment Relationship Employer may end relationship by - Summarily dismissing, or firing and employee - Gives the employee notice of termination - Acts in such a manner that the employment relationship becomes untenable Dismissal for Just Cause - Employee conducts that amounts to a fundamental breach of the employment contract - Employer may dismiss an employee without notice-exists when the employee is guilty of on one or more of the following: o Serious misconduct o Habitual neglect of duty o Incompetence o Conduct incompatible with duties or prejudicial to the employer’s business o Willful disobedience in a matter of substance - A minor infraction by an employee is insufficient to justify dismissal - Cumulative effect of many minor instances may be sufficient - Cumulative effect must be such that there is a serious impact on the employment relationship Serious Misconduct - Intentional, harmful conduct of the employee that permits the employer to dismiss without notice - Progressive discipline policy → system that follows a sequence of employee discipline from less to more severe punishment - Condonation→ employer behaviour that indicates to the employee that misconduct is being overlooked; employer must be fully aware of the wrongful behaviour Habitual Neglect of Duty → persistent failure to perform employment duties Incompetence → lack of ability, knowledge, or qualification to perform employment obligations Conduct incompatible → personal behaviour that is irreconcilable with employment duties or prejudicial to the employer’s business Willful Disobedience → deliberate failure to carry out lawful and reasonable orders Other Cases → bases for termination without notice - Harassment including sexual harassment - Disruption of corporate culture - Consumption of alcohol or drugs in the workplace - Drug abuse - Each situation must be analyzed on its facts Non Causes and Near Cause - Situations arise whereby what appears to a good reason for terminating an employee is not necessarily just cause - Reasonable notice → period of time for an employee to find alternative employment prior to dismissal - In the absence of just cause, the employer is required to give notice or pay in lieu of notice Dismissal without notice - Reasonable notice periods → primary factors in determining the period of notice o Age o Length of service o Availability of employment o Status of employee - Other factors that tend to lengthen notice include Chapter 21 Legal Environment of Business Terminating the Employment Relationship o Higher degree of specialization o Inducement to join an organization o Company policy o Custom and industry practice o Personal characteristics o Economic climate Constructive Dismissal → employer has no entitlement to make a fundamental change to an employment contract without the employee’s consent - Employer conduct that amounts to a breach of a fundamental term of the employment contract - Fundamental term→ term that is considered to be essential to the contract - Employee may accept the change and create a new employment contract or refuse to accept the change, quit and sue - Minimizing the tasks of
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