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only for certain offenses, or progressive discipline, then the employermay have created an implied contract. However, before the plaintiff ina wrongful discharge lawsuit can make such allegations, he or she mustconvince the court that the employer intended the employment manualto be a part of the employment relationship. This can usually be done ifthe employer required the employee to read and sign the handbook as acondition of employment.Most federal and state courts that have recognized that the impliedcontract exception will still allow employers to maintain an employment-at-willarrangement by using a disclaimer. A disclaimer is a statementthat holds that, regardless of any provisions, policies, or oralpromises to the contrary, an employment-at-will situation still existsbetween the employer and its employees. To be effective, a disclaimershould include the following statements:l Neither the employee handbook nor any other communication toemployees is intended to create an employment contract between thefirm and its employees.l The employer reserves the right to discharge an employee at anytime with or without notice and with or without reason.l No one other than the president of the firm is empowered to makeany oral or written change in this disclaimer.Example 3. Mary Barnes applied for a job with the KosarBrothers Department Store. The employee manual contained adisclaimer that preserved employment-at-will. The disclaimerspecifically said that employees could be discharged with or withoutnotice at any time for any or no reason. Only the president ofthe store could alter this provision. Barnes told Jack Gower, theassistant manager, that she would not work under such provisions.Gower told her to ignore the disclaimer and promisedPorter a job for life. Gower’s oral representation would have nolegal effect in light of the ironclad nature of the disclaimer. Barnesrealized this and sought employment elsewhere.MathematicsIn May 2001, the U.S.Department of Laborreported 1,426 mass layoffactions by employersduring that month. Amass layoff action meansthat a single companylays off at least 50 people,regardless of the durationof the layoff.Research ActivityLook at the chart below.Mass TotalLayoff No. ofActions WorkersJan–May 2001 7,426 878,387Jan–May 2000 5,873 627,520What is the percentageincrease in the numberof mass layoffs andindividual workers laid offbetween January and Mayof 2000 and betweenJanuary and May of 2001?Although the disclaimer provides a way for an employer to preserveemployment-at-will, many employers are reluctant to include such astatement in their employee handbooks. It may lower morale to remindemployees that they can be fired at any time without warning or cause.Some employers qualify the disclaimer by saying that “employees canbe dismissed at any time for just cause,” or “employees who violatecompany rules can be terminated at any time.” Such qualifying provisionscan weaken the disclaimer to the extent that it no longer has theeffect of preserving employment-at-will, making it possible for a dischargedemployee to sue for breach of an implied employment contract.Chapter 20: Employment Law 439

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