Michigan Businesses Must Be Careful of "Unfair" Firings
Courts have awarded damages for "unfair" firings. For example, it is illegal under federal pension laws to terminate employment to prevent an employee from getting vested pension rights. Contract rights can prohibit firing someone to avoid paying a large sales bonus.
Under the "employment at will" cases, courts have found firings to be unfair and illegal when an employee was led to believe that the employer provided lifetime employment and was discharged after a long history of promotions and raises with no mention of negative job performance in the personnel file.
Your company can adopt termination procedures to avoid illegal firing claims. For example, it may be advisable for two company representatives to be present when an employee is discharged. Also, a termination benefit with severance pay based on longevity may lessen the hostility of terminated employees.
The assistance of a good lawyer can help you prepare procedures and forms to make discharges less painful and more legally defensible.
