Human

Human Resource
Resource SECTION
SECTION 55
Employee
Employee
Management
Management Relations
Relations
and
and
Global
Global HR
HR
TENTH
TENTHEDITON
EDITON

Robert L. Mathis  John H. Jackson

Chapter 16

Employee
EmployeeRights
Rightsand
and
Discipline
Discipline

PowerPoint Presentation
© 2003 Southwestern College Publishing. All rights reserved.
by Charlie Cook
 Learning
Learning Objectives
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.

© 2002 Southwestern College Publishing. All rights reserved. 16–2

 Learning
Learning Objectives
Objectives (cont’d)
(cont’d)
– Discuss issues associated with workplace
monitoring, surveillance, investigations, and drug
testing.
– List elements to consider when developing an
employee handbook.
– Differentiate between the positive approach and
the progressive approach to discipline.

© 2002 Southwestern College Publishing. All rights reserved. 16–3

 Rights
Rights and
and Responsibilities
Responsibilities Issues
Issues
 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.

© 2002 Southwestern College Publishing. All rights reserved. 16–4

 Typical
Typical Employment
EmploymentContract
ContractProvisions
Provisions

Figure 16–1
© 2002 Southwestern College Publishing. All rights reserved. 16–5
 Contractual
Contractual Rights
Rights
Key Terms
Contractual Rights Rights based on a specific contractual
agreement between employer and employee.

Separation Agreement Agreement in which an employee who is

being terminated agrees not to sue the
employer in exchange for specified benefits.

Employment Contract Agreement that formally outlines the details

of employment.

Non-Compete An agreement that prohibits an individual

Agreement who leaves the organization from competing
with the employer in the same line of
business for a specified period of time.

Implied Contract The idea that a contract exists between the

employer and the employee based on the
implied promises of the employer.

© 2002 Southwestern College Publishing. All rights reserved. 16–6

 Employment
Employment Practices
Practices Liability
Liability Insurance
Insurance
 Employment Practices Liability Insurance (EPLI)
– Covers employer’s costs for legal fees, settlements,
and judgments associated with employment-related
actions such as:
• Discrimination
• Wrongful discipline
• Sexual harassment
• Wrongful termination
• Negligent evaluation
• Infliction of emotional distress
• Breach of employment contract
• Deprivation of career opportunity
• Improper management of employee benefits

© 2002 Southwestern College Publishing. All rights reserved. 16–7

Rights
Rights Affecting
Affecting the
the Employment
Employment Relationship
Relationship
 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 individual’s employment for
reasons that are improper or illegal.
– Fortune v. National Cash Register

© 2002 Southwestern College Publishing. All rights reserved. 16–8

 Employment-at-Will
Employment-at-Will (EAW)
(EAW)
Exceptions to EAW
Public Policy An employee can sue an employer if he or
she was fired for refusing the employer’s
demand to violate public policy (“break the
law”).

Implied Employment An employee can sue an employer if the

Contract employer’s actions or inaction constitute an
implied contract of continuing employment.

Good Faith and Fair If the employer’s unruly behavior breaks a

Dealing covenant of good faith with the employee,
then that employee can sue the employer.

© 2002 Southwestern College Publishing. All rights reserved. 16–9

 Sample
Sample
Employment-
Employment-
at-Will
at-Will
Statement
Statement

Figure 16–2
© 2002 Southwestern College Publishing. All rights reserved. 16–10
 Keys
Keysfor
forDefense
Defensein
inWrongful
Wrongful Discharge:
Discharge:
The
The“Paper
“PaperTrail”
Trail”

Figure 16–3
© 2002 Southwestern College Publishing. All rights reserved. 16–11
 Just
Just Cause
Cause
 Just Cause
– Reasonable justification for taking an employment-
related 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.

© 2002 Southwestern College Publishing. All rights reserved. 16–12

 Due
Due Process
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.

© 2002 Southwestern College Publishing. All rights reserved. 16–13

 Criteria
Criteriafor
forJust
JustCause
Causeand
andDue
DueProcess
Process

Figure 16–4
© 2002 Southwestern College Publishing. All rights reserved. 16–14
 Alternative
Alternative Dispute
Dispute Resolution
Resolution (ADR)
(ADR)

Arbitration
Arbitration Peer
PeerReview
ReviewPanel
Panel

Alternative
Alternative
Dispute
Dispute
Resolution
Resolution

Organizational
Organizational
Ombudsman
Ombudsman

© 2002 Southwestern College Publishing. All rights reserved. 16–15

 Examples
Examplesof
ofFour-Step
Four-StepADR
ADRApproaches
Approaches

Source: Adapted from “HR Shop Talk,” Bulletin to Management, May 25, 2000, 166;
and “Alternative Dispute Resolution,” Bulletin to Management, August 3, 2001, 247. Figure 16–5
© 2002 Southwestern College Publishing. All rights reserved. 16–16
 Balancing
Balancing Employer
Employer Security
Security Concerns
Concerns
and
and Employee
Employee Rights
Rights
 Right to Privacy
– Defined in legal terms for individuals as the
freedom from unauthorized and unreasonable
intrusion into their personal affairs.
 Privacy Rights and HR Records:
– Access to personal information held by employer
– Response to unfavorable information in records
– Correction of erroneous information
– Notification when information is given to a third
party

© 2002 Southwestern College Publishing. All rights reserved. 16–17

 Employee
Employee Records
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 employee’s consent
© 2002 Southwestern College Publishing. All rights reserved. 16–18
 Employee
EmployeeRecord
RecordFiles
Files

Figure 16–6
© 2002 Southwestern College Publishing. All rights reserved. 16–19
 Employee
Employee Free
Free Speech
Speech Rights
Rights

Advocacy
Advocacyofof
Controversial
Controversial
Views
Views

Tracking Free
Free
Tracking
Employee
Employee Speech
Speech Whistle-Blowing
Whistle-Blowing
Internet
InternetUsage
Usage Rights
Rights

Monitoring
Monitoringof
of
E-Mail/Voice
E-Mail/VoiceMail
Mail

© 2002 Southwestern College Publishing. All rights reserved. 16–20

 Keeping
KeepingTabs
Tabson
onEmployees
EmployeesOnline
Online

Source: Adapted from data in “Keeping Tabs in Employees

Online,” Business Week, February 19, 2001, p. 16. Figure 16–7
© 2002 Southwestern College Publishing. All rights reserved. 16–21
 Methods
Methodsof
ofDealing
Dealingwith
withWorkplace
WorkplaceTheft
Theft

Figure 16–8
© 2002 Southwestern College Publishing. All rights reserved. 16–22
 Impact
Impactof
ofSubstance
SubstanceAbuse
Abuseon
onEmployers
Employers

Figure 16–9
© 2002 Southwestern College Publishing. All rights reserved. 16–23
 Drug
Drug Testing
Testing and
and Employee
Employee Rights
Rights
 Arguments Against Drug Testing
– It violates employees’ privacy rights.
– Drugs may not affect performance in every case.
– Employers may abuse the results of tests.
– Drug tests may be inaccurate.
– Test results can be misinterpreted.
 Types of Drug Testing
– Urinalysis
– Hair immunoassay
– Fit-for-duty tests for impairment

© 2002 Southwestern College Publishing. All rights reserved. 16–24

 Drug
Drug Testing
Testing
 Conducting Drug Tests
– Random testing of all employee at periodic intervals
– Testing only in cases of probable cause
– Testing after accidents
 When to Test (Conditions)
– Job consequences outweigh privacy concerns
– Accurate test procedures are available
– Written consent of the employee is obtained
– Results are treated confidentially
– Employers have a complete drug program,
including an EAP.

© 2002 Southwestern College Publishing. All rights reserved. 16–25

 HR
HR Policies,
Policies, Procedures,
Procedures, and
and Rules
Rules
 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”

© 2002 Southwestern College Publishing. All rights reserved. 16–26

 Typical
Typical Division
DivisionofofHR
HRResponsibilities:
Responsibilities:
Policies
Policiesand
andRules
Rules

Figure 16–10
© 2002 Southwestern College Publishing. All rights reserved. 16–27
 Employee
Employee Handbooks
Handbooks
 Legal Review of Language
– Eliminate controversial phrases in wording.
– Use disclaimers disavowing handbook as a contract.
– Keep handbook content current.
 Readability
– Adjust reading level of handbook for intended
audience of employees.
 Use
– Communicate and discuss handbook.
– Notify all employees of changes in the handbook.

© 2002 Southwestern College Publishing. All rights reserved. 16–28

 Communicating
Communicating HR
HR Information
Information

Communicating
Communicating
HR
HRInformation
Information

HR
HRPublications
Publications E-Mail
E-Mailand
and Suggestion
Suggestion
and
andMedia
Media Teleconferencing
Teleconferencing Systems
Systems

© 2002 Southwestern College Publishing. All rights reserved. 16–29

 Employee
Employee Discipline
Discipline
Discipline
– A form of training that enforces organizational
rules.
Positive Discipline Approach
1. Counseling
2. Written Documentation
3. Final Warning (decision day-off)
4. Discharge

© 2002 Southwestern College Publishing. All rights reserved. 16–30

 Typical
Typical Division
Divisionof
ofHR
HRResponsibilities:
Responsibilities:Discipline
Discipline

Figure 16–11
© 2002 Southwestern College Publishing. All rights reserved. 16–31
 Progressive
ProgressiveDiscipline
DisciplineProcedure
Procedure

Figure 16–12
© 2002 Southwestern College Publishing. All rights reserved. 16–32
 Reasons
Reasons Why
Why Discipline
Discipline Might
Might Not
Not Be
Be Used
Used
 Organization culture regarding discipline
 Lack of support by higher management
 Guilt
 Loss of friendship
 Time loss
 Fear of lawsuits

© 2002 Southwestern College Publishing. All rights reserved. 16–33

 The
The Hot
Hot Stove
Stove Rule
Rule
 Good discipline (or a rule) is like a hot stove in
that:
– It provides a warning (feels hot)
– It is consistent (burns every time)
– It is immediate (burns now)
– It is impersonal (burns all alike)

© 2002 Southwestern College Publishing. All rights reserved. 16–34

 Discharge:
Discharge: The
The Final
Final Disciplinary
Disciplinary Step
Step
 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.

© 2002 Southwestern College Publishing. All rights reserved. 16–35