Cause Definition Employment Agreement

However, all-you-can-eat employment is often the exception when it comes to executives or situations of dual management/situation of workers. In these cases, a company and an individual often enter into a specific employment contract that cannot be terminated at will and « for a fundamental reason. » From the point of view of the association, however, too narrow a definition of causes carries a considerable risk. In such a case, the board of directors, if it finds that it must remove the officer in the best interest of the organization, may be obliged to pay a significant severance package. In another common scenario, a board may attempt to stretch an ambiguous definition of causes to cover its reasons for terminating the executive`s employment. The dismissed executive then implements the board`s interpretation, and the organization is involved in a costly breach of action. Here are some common definitions that employers and individuals should consider to justify the termination of a « vercaous » employment contract: « Constructive dismissal without reason » means the termination of the manager`s employment at his initiative, as provided for in this agreement after the entry into force, without the prior written consent of the executive for one or more of the following events (except with respect to the termination of management`s employment due to death, obstruction, change of control or cause): the following clause is an example of a favourable provision « for a good reason » that protects the employer and the worker. Appropriate clauses may include more favourable or less favourable provisions depending on the situation. (ii) an intentional act of fraud, embezzlement, theft or any other substantial interference with society in the context of the worker`s employment; In short, the executive has the right to be treated fairly and not to be terminated before the end of a expiry contract for the wrong reason, illegal reason or unfair reason. But the company has the right to demand a good faith effort and an acceptable level of performance from management. Accordingly, the agreement should contain a provision requiring the executive to make its « best efforts » in carrying out its duties under the agreement and the setting of the case should give the company the flexibility to terminate an officer without the obligation to dismiss for legitimate and non-discriminatory cases (provided that it has the leverage to negotiate such conditions). To address potentially outrageous behaviour that the Board of Directors has found, but has not yet been made public, the cause may be defined in such a way that « any act or omission by the executive that occurs or is disclosed during the executive`s duties within the association is that the board of directors reasonably considers it likely to damage the business or reputation of the association, as these acts are disclosed to the executive and that the executive has had the opportunity to respond in writing to the board of directors. » (iii) the loss of executive securities or positions, as described in this agreement; however, if the election of a vice-president or honorary president is not considered a loss of title or position; The definition of cases should also include the obstruction of the executive branch, which prevents the executive from performing its functions over a longer period of time. However, this definition must be consistent with the U.S. Disability Act (« ADA »), the Family medical leave act (« FMLA ») and existing government and local laws on disability and workers` leave rights.

In other words, an officer`s employment contract does not exceed his legal rights.