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Example 5. Marvin Pardew’s employer, Ron Wilson, was havinga very bad day. When Wilson discovered several careless errorsmade by Pardew, he flew into a rage. In the process of firingPardew, Wilson publicly insulted Pardew using loud, offensivespeech. He then grabbed Pardew by the arm and dragged him tothe exit of the building. Wilson’s behavior caused Pardew to experiencefeelings of extreme humiliation. Pardew might be able towin a tort lawsuit against his employer.Implied Covenant Another exception to employment-at-will is theprinciple of implied covenant . This principle holds that any employmentrelationship is based on an implied promise that the employerand employee will be fair and honest with one another. Unlike impliedcontract, the existence of an implied covenant exists simply becausethe employment relationship exists.When mediation isused in an attempt tosettle cases of sexualharassment in theworkplace, 85 percentof the cases are successfullyresolved outsideof court.Example 6. Ella Ernst was to receive a 25 percent commissionon all computer sales she made for her employer, Clarkson ComputerCompany (CCC). Ernst made a $10 million sale to the federalgovernment, earning a $2.5 million commission. CCC firedher and refused to pay the commission. Ernst sued CCC for unjustdismissal based on the existence of an implied covenant. Thecourt held that CCC had violated an implied covenant of fairdealing and honesty. Ernst was entitled to her commission.Reviewing What You Learned1. What is employment-at-will?2. What situations fall outside of the doctrineof employment-at-will?3. What are the exceptions to employmentat-will?4. What is the difference between impliedcontract and implied covenant?Critical Thinking ActivityEmployment-at-Will Why have thecourts begun to carve out exceptions to theemployment-at-will doctrine?Legal Skills In ActionEmployment Rights and Duties Your UncleIan was recently approached at work by arepresentative of a union that is attempting toorganize the workers at his plant. Uncle Ianbelieves that as a union member, he will beguaranteed a job for life. Send an e-mailmessage to your Uncle Ian explaining why theunion can’t guarantee him lifelong employment.Chapter 20: Employment Law 441