Legal and Ethical Issues Pertaining Firing Employees, Research Paper Example

For a business to be successful, managers must take maximal advantage of their employees. Often, this requires taking care to ensure that the appropriate talent is hired in order to maximize efficiency. In many cases, this also involves removing ineffective talent to appropriate funds to the individuals that are doing better work. However, business professionals are required to follow legal and ethical business practices while doing so. This is especially important because disgruntled employees tend to fight the grounds on which they were released from their employment, which could result in the need for the organization to invest in legal fees that impair the overall profitability of the company (Cowen et al., 2010).

The first legal and ethical consideration that must be made in this setting is that according to U.S. labor law, all employment is at-will (Summers, 2000). This indicates that the employer or employee can break the terms of employment at any time for any reason. On the behalf of the employer, this indicates that employees can be let go for a mixture of reasons, although these typically involve a lack of productivity from the employee, or a demonstration from this individual that their skills are not adequate to perform the job for which they were hired. Since the salary of this individual is often an unnecessary expense, managers wish to terminate the employment of these workers. While this is legal, it is important for the employer to have evidence for the reasons for this termination, as the termination cannot be done on the basis of discrimination (Sandefur, 2010).

Employees who are generally dissatisfied with the terms of their termination will counter the arguments of their former employer to demonstrate that their termination was wrongful. If an employee is terminated on the basis of their gender, race, religion, or creed, they may have legal grounds to sue their previous employer. In addition, many current employees may threaten their current employers that they will do so if they are released from their position. However, it is important for both parties to be aware of the terms of at-will employment in this case and legal cases typically weigh in the favor of the employer as a consequence. Ultimately, it is difficult for courts to determine whether an employee was released as a consequence of discrimination or due to their behaviors at work, so if an employer is able to provide a sufficient enough reason for the termination, this is the party that will typically win the suit.

While employment is generally at-will, it is important to consider that 36 states have an implied contract exception. In these instances, employers provide their employees with a handbook that generally dictates rules of employment and the protections that will be afforded to them during employment. These handbooks typically dictate expectations that will be held of the employees in addition to terms that the employees should not violate. If employees continue to act according to the terms of the guidelines provided to them and signed at the time of employment, they are protected from termination unless these terms are broken. However, unethical employers can put fourth effort to ensure that these employees can be made to break these terms, thereby legitimizing the terms of their release from employment.

Ultimately, many ethical concerns can arise concerning an employer’s ability and likelihood to terminate the employment of an employee. Ethical employers take care to protect the rights of their workers, although many companies do not do so because past protecting their safety in the workplace according to OSHA regulations, there are no requirements to do so. This means that employers tend to work in a manner that promotes the employee development of effective workers and terminating those who are repeatedly ineffective. These legal regulations therefore benefit the employer to a greater extent than the employee, although this may be necessary in order to ensure that businesses remain open.

It is important for companies to have systems in place that allow whistleblowing for this purpose. There can be instances in which employees wish to report aspects of the work environment in which there is employee mistreatment and safety problems, but become too afraid to report this information to managers for fear that their employment will be terminated. This is ultimately a disadvantage of at-will employment because it allows employers to take advantage of their employees in a manner that prevents them from having rights that would enhance the health and safety of their workplace. Even though government regulatory agencies take action to ensure that this will not be the case, work environments in which employers cause their employees to fear reporting these conditions occur too frequently.

It is important for employers to understand that it is more beneficial to provide employees with a supportive workplace environment, as this will help motivate them to perform well. If employees are in consistent fear that their employers will terminate their employment, their work will not be productive. Therefore, it is reasonable for employers to define a specific terms of employment for each position that they are filling in order to give these individuals a greater understanding of what their workplace expectations are and what will occur if these expectations are not met. Doing so will provide employees with a goal to work towards if the given expectations are not met, and will cause them to gain a greater understanding of their employment termination if this is necessary.

Ultimately, it is more beneficial for employers to commit to long-term relationships with their employees, as it is more profitable to help them build skills that will contribute to the productivity of the workplace (Budd, 2004). It is therefore preferential to avoid terminating employees unless the actions of the specific individual indicate that doing so is absolutely necessary for the benefit of the company. To avoid legal and ethical concerns, it is recommended that all employers present their employees with an understanding of the terms and conditions of employment prior to their hiring in order to prevent against an unsuitable hiring that will eventually lead to termination. Furthermore, the companies should specifically spell out the commitment to diversity and equality that they have, in addition to any programs that are made specifically to enhance the involvement of these groups in the workplace. While it is difficult to prevent against all legal claims presented by former employees, if these steps are taken it will significantly reduce legal damages and create a better image of the company that puts these policies in place.

References

Budd JW. (2004). Employment with a Human Face: Balancing Efficiency, Equity, and Voice Ithaca: Cornell University Press.

Cowen T, Tabarrok A. (2010). Modern Principles: Macroeconomics. New York: Worth Publishers.

Sandefur T. (2010). The Right to Earn a Living: Economic Freedom and the Law.Washington, D.C.: Cato Institute.

Summers CW. (2000). Employment At Will in the United States: The Divine Right of Employers. 3 U. Pa. J. Lab. & Emp. L.