CHAPTER 16 Employee Rights and Responsibilities S E C T I O N Managing Employee Relations © 2008 Thomson/South-Western All rights reserved PowerPoint Presentation by Charlie Cook The University of West Alabama Chapter Chapter 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 discuss how wrongful discharge, just cause, and due process are interrelated ■ Identify employee rights associated with free speech and access to employee records ■ Discuss issues associated with workplace monitoring, employer investigations, and drug testing ■ List elements to consider when developing an employee handbook ■ Differentiate between the positive approach and progressive approach to discipline © 2008 Thomson/South- Western All rights reserved 16–2 Employee Rights and Responsibilities • Rights That which belongs to a person by law, nature, or tradition • Responsibilities Obligations to perform certain tasks and duties • Statutory Rights Rights based on specific laws and statutes passed by federal, state, and local governments Equal employment opportunity Collective bargaining Workplace safety © 2008 Thomson/SouthWestern All rights reserved 16–3 Contractual Rights • Contractual Rights Rights based on a specific contract between employer and employee • Employment Contract An agreement that formally outlines the details of employment • Implied Contract The idea that a contract exists between the employer and the employee based on the implied promises of the employer © 2008 Thomson/SouthWestern All rights reserved 16–4 FIGURE 16-1 Provisions in Employment Contracts © 2008 Thomson/SouthWestern All rights reserved 16–5 Contractual Rights (cont’d) • Non-Compete Agreements Prohibit individuals who quit from competing with an employer in the same line of business for a specified period of time Employment Contract Clauses Non-piracy agreements Non-solicitation of current employees © 2008 Thomson/SouthWestern All rights reserved Intellectual property and trade secrets 16–6 Contractual Rights (cont’d) • Employment Practices Liability Insurance (EPLI) Covers employer’s costs for legal fees, settlements, and judgments associated with employment-related actions © 2008 Thomson/SouthWestern All rights reserved 16–7 Rights Affecting the Employment Relationship Employment-at-Will (EAW) Wrongful and Constructive Discharge Just Cause The Employment Relationship Due Process Distributive and Procedural Justice © 2008 Thomson/SouthWestern All rights reserved 16–8 Employment-at-Will (EAW) Employers Employees Employers have the right to hire, fire, demote, or promote as 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 © 2008 Thomson/SouthWestern All rights reserved 16–9 Employment-at-Will (cont’d) Exceptions to EAW Violation of Public Policy Implied Contract of Continuing Employment © 2008 Thomson/SouthWestern All rights reserved Covenant of Good-faith and Fair-dealing 16–10 Employee Misconduct Illegal Drug Sample Use Falsification of Sample Documents Employee Theft Types of Sample Employee Misconduct Employment Sample Harassment Workplace Sample Violence © 2008 Thomson/SouthWestern All rights reserved Misuse of Company Sample Funds Disclosure of Organizational Sample Secrets 16–24 FIGURE 16-6 Means Used to Reduce Employee Theft and Misconduct © 2008 Thomson/SouthWestern All rights reserved 16–25 Employer Investigations Employer Investigation of Workplace Conduct Administering Honesty and Polygraph Tests Reviewing Unusual On and Off the Job Behavior © 2008 Thomson/SouthWestern All rights reserved Conducting Work-Related Investigations 16–26 Substance Abuse and Drug Testing • Drug-Free Workplace Act of 1988 Requires government contractors to take steps to eliminate employee drug use Failure Act to comply can lead to contract termination does not cover tobacco and alcohol Off-the-job drug use is not included • U.S Department of Transportation (DOT) Requires regular testing of truck and bus drivers, train crews, mass-transit employees, airline pilots and mechanics, pipeline workers, and licensed sailors © 2008 Thomson/SouthWestern All rights reserved 16–27 FIGURE 16-7 How Substance Abuse Affects Employers Financially © 2008 Thomson/SouthWestern All rights reserved 16–28 Drug Testing and Employee Rights • Policies for Conducting Drug Tests Random testing of all employees 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 Employer has drug program, including an EAP © 2008 Thomson/SouthWestern All rights reserved 16–29 HR Policies, Procedures, and Rules Policies Procedures Rules General guidelines that focus organizational actions Customary methods of handling activities Specific guidelines that regulate and restrict the behavior of individuals “Why we it” “How we it” “The limits on what we do” Employee Rights © 2008 Thomson/SouthWestern All rights reserved 16–30 FIGURE 16-8 Typical Division of HR Responsibilities: Policies, Procedures, and Rules © 2008 Thomson/SouthWestern All rights reserved 16–31 Employee Handbooks At-Will Prerogatives Pay/Overtime Harassment Policies in Handbooks Electronic Communication Discipline Benefits © 2008 Thomson/SouthWestern All rights reserved 16–32 Employee 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 © 2008 Thomson/SouthWestern All rights reserved 16–33 Communicating HR Information Downward and Upward Internal Communications Internal Publications and Media © 2008 Thomson/SouthWestern All rights reserved Electronic Communication 16–34 Employee Discipline • Discipline A form of training that enforces organizational rules Approaches to Discipline Positive Discipline Counseling Written Documentation Final Warning (decision dayoff) Discharge © 2008 Thomson/SouthWestern All rights reserved Progressive Discipline Verbal Caution Written Reprimand Suspension Discharge 16–35 FIGURE 16-9 Progressive Discipline Process © 2008 Thomson/SouthWestern All rights reserved 16–36 Employee Discipline Organizational culture of avoiding discipline Fear of lawsuits Avoidance of time loss Lack of support by higher management Reasons Why Managers Might Not Use Discipline Guilt about past behavior Fear of loss of friendship © 2008 Thomson/SouthWestern All rights reserved 16–37 Discharge: The Final Disciplinary Step • Termination Process Coordinate manager and HR review Select a neutral location Conduct the termination meeting Have HR discuss termination benefits Escort the employee from the building Notify the department staff • Separation Agreement An agreement in which a terminated employee agrees not to sue the employer, in exchange for specified benefits © 2008 Thomson/SouthWestern All rights reserved 16–38