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    Human Resource

    ManagementTENTH EDITON

    2003 Southwestern College Publishing. All rights reserved. PowerPoint Presentationby Charlie Cook

    Employee Rights and

    Discipline

    Chapter 16

    SECTION 5Employee

    Relations

    andGlobal HR

    Robert L. Mathis John H. Jackson

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    2002 Southwestern College Publishing. All rights reserved. 162

    Learning Objectives

    After you have read this chapter, you should beable to:

    Explain the difference between statutory rights andcontractual rights.

    Define employment-at-will and identify threeexceptions to it.

    Describe what due process is and explain somemeans of alternative dispute resolution.

    Identify employee rights associated with access toemployee records and free speech.

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    2002 Southwestern College Publishing. All rights reserved. 163

    Learning Objectives (contd)

    Discuss issues associated with workplacemonitoring, surveillance, investigations, and drugtesting.

    List elements to consider when developing an

    employee handbook. Differentiate between the positive approach and the

    progressive approach to discipline.

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    Rights and Responsibilities Issues

    Rights That which belongs to a person by law, nature, or

    tradition.

    Responsibilities

    Obligations to be accountable for actions.

    Statutory Rights

    Rights based on specific laws and statutes passedby federal, state, and local governments.

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    2002 Southwestern College Publishing. All rights reserved. 165

    Typical Emp loyment Contract Provis ions

    Figure 161

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    Contractual Rights

    Key Terms

    Contractual Rights Rights based on a specific contractualagreement between employer and employee.

    Separation Agreement Agreement in which an employee who isbeing terminated agrees not to sue the

    employer in exchange for specified benefits.

    Employment Contract Agreement that formally outlines the detailsof employment.

    Non-CompeteAgreement

    An agreement that prohibits an individualwho leaves the organization from competing

    with the employer in the same line ofbusiness for a specified period of time.

    Implied Contract The idea that a contract exists between theemployer and the employee based on theimplied promises of the employer.

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    Employment Practices Liability Insurance

    Employment Practices Liability Insurance (EPLI) Covers employers costs for legal fees, settlements,

    and judgments associated with employment-relatedactions such as:

    Discrimination Wrongful discipline

    Sexual harassment

    Wrongful termination

    Negligent evaluation

    Infliction of emotional distress

    Breach of employment contract

    Deprivation of career opportunity

    Improper management of employee benefits

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    Rights Affecting the Employment Relationship

    Employment-at-Will (EAW)A common law doctrine stating that employers have

    the right to hire, fire, demote, or promotewhomever 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.

    Wrongful Discharge

    Termination of an individuals employment forreasons that are improper or illegal.

    Fortune v. National Cash Register

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    Employment-at-Will (EAW)

    Exceptions to EAW

    Public Policy An employee can sue an employer if he orshe was fired for refusing the employersdemand to violate public policy (break thelaw).

    Implied EmploymentContract

    An employee can sue an employer if theemployers actions or inaction constitute animplied contract of continuing employment.

    Good Faith and Fair

    Dealing

    If the employers unruly behavior breaks acovenant of good faith with the employee,

    then that employee can sue the employer.

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    Sample

    Employment-

    at-Will

    Statement

    Figure 162

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    Keys for Defense in Wrong ful Disch arge:

    The Paper Trail

    Figure 163

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    Just Cause

    Just Cause Reasonable justification for taking an employment-

    related action.

    Constructive Discharge

    An employer deliberately makes working conditionsintolerable for an employee in an attempt to get (toforce) that employee to resign or quit.

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    Due Process

    Due Process The means used for individuals to explain and

    defend their actions against charges or discipline.

    Distributive Justice

    Perceived fairness in the distribution of outcomes.

    Procedural Justice

    Perceived fairness of the process used to makedecision about employees.

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    Criter ia for Just Cause and Due Process

    Figure 164

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    Alternative Dispute Resolution (ADR)

    Organizational

    Ombudsman

    Arbitration Peer Review Panel

    Alternative

    Dispute

    Resolution

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    Examples of Four-Step ADR Appro aches

    Figure 165

    Source: Adapted from HR Shop Talk, Bulletin to Management, May 25, 2000, 166;

    and Alternative Dispute Resolution, Bulletin to Management, August 3, 2001, 247.

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    Balancing Employer Security Concerns

    and Employee Rights

    Right to Privacy

    Defined in legal terms for individuals as thefreedom from unauthorized and unreasonable

    intrusion into their personal affairs. Privacy Rights and HR Records:

    Access to personal information held by employer

    Response to unfavorable information in records

    Correction of erroneous information Notification when information is given to a third

    party

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    Employee Records

    ADA Provisions Employee medical records are to be kept as

    separate confidential files available under limitedconditions specified in the ADA.

    HR Records Security Restrict access to all HR records

    Utilize confidential passwords to HRIS databases

    Place sensitive information in separate files and

    restricted databases Inform employees of types of data to retain

    Purge outdated data from records

    Release information only with employees consent

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    Emp loyee Reco rd Fi les

    Figure 166

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    Employee Free Speech Rights

    Tracking

    Employee

    Internet Usage

    Advocacy of

    Controversial

    Views

    Whistle-Blowing

    Monitoring of

    E-Mail/Voice Mail

    Free

    Speech

    Rights

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    Keeping Tabs on Employees Onl ine

    Figure 167

    Source: Adapted from data in Keeping Tabs in Employees

    Online, Business Week, February 19, 2001, p. 16.

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    Methods of Deal ing w ith Workplace Theft

    Figure 168

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    Impact of Subs tance Abuse on Emp loyers

    Figure 169

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    Drug Testing and Employee Rights

    Arguments Against Drug Testing It violates employees privacy rights.

    Drugs may not affect performance in every case.

    Employers may abuse the results of tests.

    Drug tests may be inaccurate. Test results can be misinterpreted.

    Types of Drug Testing

    Urinalysis

    Hair immunoassay

    Fit-for-duty tests for impairment

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    Drug Testing

    Conducting Drug Tests Random testing of all employee 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

    Employers have a complete drug program,including an EAP.

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    HR Policies, Procedures, and Rules

    Policies General guidelines that focus organizational actions. Why we do it

    Procedures

    Customary methods of handling activities How we do it

    Rules

    Specific guidelines that regulate and restrict the

    behavior of individuals. The limits on what we do

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    Typical Division of HR Responsib i l i t ies:

    Pol icies and Rules

    Figure 1610

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    Employee Handbooks

    Legal Review of Language Eliminate controversial phrases in wording.

    Use disclaimers disavowing handbook as a contract.

    Keep handbook content current.

    ReadabilityAdjust reading level of handbook for intended

    audience of employees.

    Use

    Communicate and discuss handbook.

    Notify all employees of changes in the handbook.

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    Communicating HR Information

    Communicating

    HR Information

    HR Publications

    and MediaSuggestion

    Systems

    E-Mail and

    Teleconferencing

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    Employee Discipline

    Discipline A form of training that enforces organizationalrules.

    Positive Discipline Approach

    1. Counseling2. Written Documentation

    3. Final Warning (decision day-off)

    4. Discharge

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    Typical Divis ion of HR Responsib i l it ies: Discip l ine

    Figure 1611

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    Progressive Discip l ine Procedure

    Figure 1612

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    Reasons Why Discipline Might Not Be Used

    Organization culture regarding discipline Lack of support by higher management

    Guilt

    Loss of friendship

    Time loss

    Fear of lawsuits

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    The Hot Stove Rule

    Good discipline (or a rule) is like a hot stove inthat:

    It provides a warning (feels hot)

    It is consistent (burns every time)

    It is immediate (burns now) It is impersonal (burns all alike)

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    Discharge: The Final Disciplinary Step

    Handling Discharges Provide discharge warning at last disciplinary stepbefore termination.

    Provide the employee with written notice of the

    discharge that clearly states the reason(s) for thedischarge decision, do not try to sugarcoat thereason(s).

    Have an HR representative attend the terminationmeeting as a witness.

    Inform the employee of HR or benefits issues.

    Maintain a professional demeanor at all times.