Downsizing and Wrongful Termination
10.23.08 (10:14 pm) [edit]
The current economic crisis has forced many businesses to shut down or lay off some of its employees and workers. The effects of the crisis, discussed in the article, “Reaching the Boiling Point”, posted on October 10, 2008, have even led some companies to downsize or dismissed some employees as part of their cost-cutting measures.
Can a downsized employee file a wrongful termination claims under the employment laws?
In California, most employees are presumed to be “at will”, hence wrongful termination claim is sometimes difficult to prove. But unless an employee is hired due to a union contract or an individual employment contract, a dismissed employee may pursue such claim if he believes he has been unjustly terminated.
Without any contract, the employee-employer relationship is considered to be “at will”. However, an “at will” employment may be modified either verbally or through practice. For instance, an employee who had been told or verbally assured of continued employment is no longer an at will employee, therefore he cannot be fired without “good cause”.
Legally good cause means "fair and honest reasons, regulated by good faith on the part of the employer, that are not trivial, arbitrary, or capricious, unrelated to business needs or goals, or pretextual”.
Other than good cause, if an employee is terminated as an act of discrimination or retaliation, then he has every reason to pursue a wrongful termination claim against an employer.
Wrongful termination claims often rely on individual facts in any given case. Copies of any hiring letters, employee handbooks, and performance evaluations are important documents that your employment lawyer can use in pursuing your case.
Can a downsized employee file a wrongful termination claims under the employment laws?
In California, most employees are presumed to be “at will”, hence wrongful termination claim is sometimes difficult to prove. But unless an employee is hired due to a union contract or an individual employment contract, a dismissed employee may pursue such claim if he believes he has been unjustly terminated.
Without any contract, the employee-employer relationship is considered to be “at will”. However, an “at will” employment may be modified either verbally or through practice. For instance, an employee who had been told or verbally assured of continued employment is no longer an at will employee, therefore he cannot be fired without “good cause”.
Legally good cause means "fair and honest reasons, regulated by good faith on the part of the employer, that are not trivial, arbitrary, or capricious, unrelated to business needs or goals, or pretextual”.
Other than good cause, if an employee is terminated as an act of discrimination or retaliation, then he has every reason to pursue a wrongful termination claim against an employer.
Wrongful termination claims often rely on individual facts in any given case. Copies of any hiring letters, employee handbooks, and performance evaluations are important documents that your employment lawyer can use in pursuing your case.