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• W114600230 abstract "Although the relationship between employers and employees continues to grow more complex and litigious, CPAs who are responsible for managing their companies' human resources function frequently lack the training needed to address the problem. This article seeks to correct that shortcoming. It cites some key personnel issues management accountants face and tells how to avoid legal traps. DEFINING EMPLOYMENT Not so long ago, all employment was at will, unless there was a specific written document citing an employment or some other restriction. Under the at-will employment doctrine, either the employer or the employee could end the employment relationship without notice and for any reason or even for no reason. However, in some states the courts have held that an employee handbook or a statement by a supervisor may be construed as a contract-eroding the at-will doctrine to such an extent that employers generally cannot fire employees freely. In these states, terminated employees can sue their employers for breach of contract--with the contract consisting of a statement in an employee handbook or a supervisor's statement. There are ways to protect against such suits. If such a handbook does exist, employers should include a statement in it reserving their right to terminate employment freely. A similar statement should be included in employment applications. The statement should say something like this: Employment is at will. may terminate your employment at any time, for any reason, with or without notice and with or without cause, and your employer may do the same. This employment relationship is neither an express nor an implied employment contract. This relationship can be changed only by a written agreement signed by the employee and the president of this company. Certain statements should be avoided when communicating with employees because they may imply employment is on a contractual basis. Such statements include * You will have a long and successful career.... * Stay with us until you retire.... Employers also should warn all supervisors that their statements can be construed to imply a of employment and direct them to avoid such comments in employment interviews and other situations. FREEDOM TO FIRE Policies--especially disciplinary ones--should give employers considerable discretion in their implementation. For example, disciplinary policies should state that the employer will follow certain disciplinary procedures but should add that the employer reserves the right to forgo any of them and terminate an employee immediately. Moreover, employers should avoid policies that provide lists of prohibited employee conduct unless such lists also include a statement that in addition to the expressly prohibited conduct other unacceptable conduct, as determined solely by the employer, may result in termination. RECORDING DISCIPLINARY EVENTS In general, the best defense in any legal action is one supported by contemporaneous records. That's especially important when it comes to employee discipline. Every time an employee is subject to a disciplinary event--from a warning to a discipline--a memorandum recording what transpired when the warning was issued or when the punishment was meted out should be prepared by the supervisor involved. Doing so is the best way to protect a company's interest should the matter lead to legal proceedings. Such documents should be written in simple, clear language so the employee understands the issues involved and the seriousness with which the employer views the errant behavior. After reading a disciplinary report, the employee should be asked to sign it, confirming that it is accurate and that he or she understands it. If the employee refuses to sign, another supervisor should be briefed on what transpired during the meeting and then also sign the document so there is a contemporaneous record of the event. …" @default.
• W114600230 created "2016-06-24" @default.
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• W114600230 date "1994-01-01" @default.
• W114600230 modified "2023-09-24" @default.
• W114600230 title "Human Resources Employment Law: Keeping out of Harm's Way" @default.
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