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Memo: Employment

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Memo: Employment
Hi Pat, as for the issues of the discharges at the Anderson Cost Club, my thoughts are as follows. The GM at the Anderson Cost is incorrect in saying that we as a company can discharge employees without a reason. There must be a legal reason for the discharge. Now, there are exceptions to the employment at will doctrine. The exceptions are as follows: 1. Bad faith, malicious termination in violation of public policy, 2. Termination in breach of the implied covenant of good faith and fair dealing. 3. Termination of an implied contract term 4. Violation of the promissory estoppel where the employee relied on the employers promise. There are other exceptions that are determined by the individual states concerning warnings issued by employers. If his reasons fall within the exceptions then the employee can lodge a claim for wrongful termination or discharge. Even though the Cost Club is non-union there are laws that we are governed by that were established to protect the employee. Pat, my suggestion is that we hold a conference call and speak with the GM to establish if he had any other reasons other than downsizing his workforce. We should question the GM on any other motives for discharge that he may or may not have had. After the conference call I suggest that we immediately contact our legal team. This is not to insinuate that we are guilty of anything. We should make sure that we cover ourselves and be ready for any legal fall out. Going forward I will make arrangements for some of our legal team to hold some workshops and trainings for our management employees on the guidelines and policies for the particular state that they reside and work in. This is just to ensure that our management team understands and is adhering to the laws that govern us. Memo #2 Hi Pat, the idea that the CEO has to reduce cost of workforce definitely can be done legally. The contingent workers are the worker whose job is temporary differs from the norm of full-time employment. They

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