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TENTH EDITON
SECTION 5
Employee Relations and Global HR
Chapter 16
Learning Objectives
After you have read this chapter, you should be able to:
Explain the difference between statutory rights and contractual rights. Define employment-at-will and identify three exceptions to it. Describe what due process is and explain some means of alternative dispute resolution.
Identify employee rights associated with access to employee records and free speech.
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Rights
That which belongs to a person by law, nature, or tradition.
Responsibilities
Obligations to be accountable for actions.
Statutory Rights
Rights based on specific laws and statutes passed by federal, state, and local governments.
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Figure 161
2002 Southwestern College Publishing. All rights reserved. 165
Contractual Rights
Key Terms
Contractual Rights Separation Agreement Rights based on a specific contractual agreement between employer and employee. Agreement in which an employee who is being terminated agrees not to sue the employer in exchange for specified benefits. Agreement that formally outlines the details of employment. An agreement that prohibits an individual who leaves the organization from competing with the employer in the same line of business for a specified period of time. The idea that a contract exists between the employer and the employee based on the implied promises of the employer.
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Implied Contract
Employment-at-Will (EAW)
A common law doctrine stating that employers have the right to hire, fire, demote, or promote whomever they choose, unless there is a law or contract to the contrary. Employees have the right to quit and got another job under the same constraints.
Wrongful Discharge
Termination of an individuals employment for reasons that are improper or illegal. Fortune v. National Cash Register
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Employment-at-Will (EAW)
Exceptions to EAW
Public Policy An employee can sue an employer if he or she was fired for refusing the employers demand to violate public policy (break the law). An employee can sue an employer if the employers actions or inaction constitute an implied contract of continuing employment. If the employers unruly behavior breaks a covenant of good faith with the employee, then that employee can sue the employer.
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Figure 162
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Figure 163
2002 Southwestern College Publishing. All rights reserved. 1611
Just Cause
Just Cause
Reasonable justification for taking an employmentrelated action.
Constructive Discharge
An employer deliberately makes working conditions intolerable for an employee in an attempt to get (to force) that employee to resign or quit.
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Due Process
Due Process
The means used for individuals to explain and defend their actions against charges or discipline.
Distributive Justice
Perceived fairness in the distribution of outcomes.
Procedural Justice
Perceived fairness of the process used to make decision about employees.
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Figure 164
2002 Southwestern College Publishing. All rights reserved. 1614
Arbitration
Organizational Ombudsman
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Source: Adapted from HR Shop Talk, Bulletin to Management, May 25, 2000, 166; and Alternative Dispute Resolution, Bulletin to Management, August 3, 2001, 247. 2002 Southwestern College Publishing. All rights reserved.
Figure 165
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Right to Privacy
Defined in legal terms for individuals as the freedom from unauthorized and unreasonable intrusion into their personal affairs.
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Employee Records
ADA Provisions
Employee medical records are to be kept as separate confidential files available under limited conditions specified in the ADA.
HR Records Security
Restrict access to all HR records Utilize confidential passwords to HRIS databases Place sensitive information in separate files and restricted databases Inform employees of types of data to retain Purge outdated data from records Release information only with employees consent
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Figure 166
2002 Southwestern College Publishing. All rights reserved. 1619
Whistle-Blowing
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Source: Adapted from data in Keeping Tabs in Employees Online, Business Week, February 19, 2001, p. 16. 2002 Southwestern College Publishing. All rights reserved.
Figure 167
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Figure 168
2002 Southwestern College Publishing. All rights reserved. 1622
Figure 169
2002 Southwestern College Publishing. All rights reserved. 1623
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Drug Testing
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Policies
General guidelines that focus organizational actions.
Why we do it
Procedures
Customary methods of handling activities
How we do it
Rules
Specific guidelines that regulate and restrict the behavior of individuals.
The limits on what we do
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Figure 1610
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Employee Handbooks
Readability
Adjust reading level of handbook for intended audience of employees.
Use
Communicate and discuss handbook. Notify all employees of changes in the handbook.
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Communicating HR Information
Communicating HR Information
Suggestion Systems
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Employee Discipline
Discipline
A form of training that enforces organizational rules.
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Figure 1611
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Figure 1612
2002 Southwestern College Publishing. All rights reserved. 1632
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Handling Discharges
Provide discharge warning at last disciplinary step before termination. Provide the employee with written notice of the discharge that clearly states the reason(s) for the discharge decision, do not try to sugarcoat the reason(s). Have an HR representative attend the termination meeting as a witness. Inform the employee of HR or benefits issues. Maintain a professional demeanor at all times.
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