Employment contracts, Suppose that the handbook contained a

Employment contracts

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Reference no: EM133800473

Employment Contracts

When LeRoy McIlravy began working for Kerr-McGee Corp., he was given an employee handbook that listed examples of misconduct that could result in discipline or discharge and spelled out specific procedures that would be used in those instances. When McIlravy was later laid off, he and other former employees filed a suit against Kerr-McGee, contending, among other things, that the handbook constituted an implied contract that Kerr-McGee had breached, because the handbook implied that employees would not be dismissed without "cause." In view of these facts, consider the following questions.

1. Would it be fair to the employer for the court to hold that an implied contract had been created in this case, given that the employer did not intend to create an contract? Would it be fair to the employees to hold that no contract was created? If the decision were up to you, how would you decide this issue?

2. Suppose that the handbook contained a disclaimer stating that the handbook was not to be construed as a contract. How would this affect your answers to the above questions? From an ethical perspective, would it ever be fair to hold that an implied contract exists notwithstanding such a disclaimer?

3. If the employee handbook stated that political attire was not appropriate while working for the company, would an employee be subject to discipline for wearing a current piece of clothing promoting a social cause? Would the restriction listed in the handbook apply to an employee taking part in a political rally during their time off?

Reference no: EM133800473

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