You are the Director of Human Resources for a medium sized company private company and have discharged Aimee, a 25 year old black at-will employee for poor work, constant tardiness, and taking longer breaks than authorized by company policy. She is not

Question

well liked by her fellow workers and her work is indeed slightly below satisfactory levels. Company files evidence numerous sub-standard reviews and that her conduct persisted despite numerous written warnings. You are confident that the company has proper cause to terminate Aimeewhether she was at-will or not. When you call her into your office to notify her of her termination, she gets very indignant saying that her work is fine and that she's not the only one late or abusive of break periods. She then asserts that she's being singled out because of her sex and her race. She asks about severance pay and you notify her that there will not be any. Aimee then informs you that she is going to sue the company for wrongful termination based on discrimination and for severance pay. The company does not want Aimee to work there any more under any circumstances but does not want the cost or publicity that a law suit would bring. What would you suggest to possibly abate the law suit?

Answer 1

Unless women and blacks were truly underrepresented, or some other pretext could be proven, the company is on strong ground. Nevertheless, the cost of litigation and the possible negative publicity is an appropriate concern that should be avoided if possible, even when a company win is apparently inevitable.
Severance pay is not required to be paid by a former employer unless there is an express or implied contract specifying that it will be available. Whether previously specified or not, if the company has paid severance in the past, it would be good policy to remain consistent and pay it to Aimee.
Even if it was not something historically done, offering Aimee severance pay is a legitimate means to allay a possible law suit. Severance pay would be proper consideration in exchange for a release of Aimee's right to sue; such releases being legal and enforceable. Other negotiating points may be the offering of outplacement services, payment of health care benefits for either a definite period or until she secures employment or some other appropriate inducement may also help to secure the release. The key is that the agreement to release her claim must be knowing, voluntary and supported by consideration.

CHAPTER 17
PRIVACY ON THE JOB: INFORMATION, MONITORING AND INVESTIGATIONS
Test Bank Questions, 5e

MULTIPLE CHOICE QUESTIONS