Contract termination

Pain

We hired an Assistant to the Principal last year on a contractual basis from August 2002 to August 2003. The contract states we can terminate the contract at any time for cause, upon 30 days granted pay.

In November 2002 the employee signed a health care contract for the company without the Principal’s knowledge. She has refused to do requested work (insubordination). She has also left work in the middle of the day without prior approval. In April of this year we discovered that she had made numerous long distance phone calls on the company phone during work hours. We asked for reimbursement of the phone expenses and have not received payment as of this date.

The board is still hesitant to terminate her contract for fear of a lawsuit. All of the above incidents are well documented.

I am placing this post so I can have documented response to show our board so they will feel more confident in their decision. What, if any, legal recourse might she have? Also, are we still required to pay her for the 30 days?

Don D

Here are my non-legal thoughts: First, surely the board has a board attorney, who is present and active during any employee personnel deliberations by the board. And surely the board will heed that person's advice since they are paying dearly for it. Second, you asked what recourse the person would have. She has the recourse to sue the board if she can find an attorney who thinks the termination of the contract was illegal. Third, if the contract says she must be paid for 30 days if the contract is terminated, then she must be paid for 30 days if the contract is terminated. Fourth, in my opinion, if the board's attorney is not experienced in contract law, he/she should run this by a colleague who is. The issue I see that remains twisting in the wind is the definition of 'cause' as stated in the contract. That one is really going to need legal interpretation and guidance.

jimlegal

Immediately contact your company's labor & employment attorney! You mentioned you have a board, then the board should be seeking advise from their attorney to not only enforce your contention, but to cover themselves from liabilty.

Margaret Morford

I think it depends on the wording of your contract, which means you should have a lawyer take a look at the situation. Does the contract have a provision that allows you to terminate for immediate cause? If the contract is silent, your past practice will govern. Have you ever terminated a contract early? If so, did you pay the individual for the thirty days? If you allowed past individuals to work out the thirty days, I think given this person's past performance, you should accept her notice effective immediately and pay her for the thirty days. She can do a lot of damage to you in those 30 days if you leave her on the premises.

As far as causes of action she might bring against you, the sky's the limit. (age? gender? etc.) But then it always is! That shouldn't stop you from addressing the situation as long as she can't prove any of those causes of action. She needs to be terminated unless you have kept someone employed that has done the same things she has done. The things you note in your posting are certainly grounds for termination depending upon your past practices.

Margaret Morford
theHRedge
615-371-8200
[email]mmorford@mleesmith.com[/email]
[url]http://www.thehredge.net[/url]

Balloonman

If everything is documented, terminate her. Have a check in hand for 30 days pay. If you don't do this you are stuck with her for another 90 days, you would be better suited to use this time looking for an appropriate replacement.
My $0.02 worth.
DJ The Balloonman