Essay about Dillon V Champion
HRM 510: Business Employment Law
June 12, 2011
Employers that do not follow their disciplinary policies, and related procedures, may get sued for breach of contract or wrongful discharge. Courts have ruled that disciplinary policies can be contracts, even when employers include at-will statements in them, if the policies contain provisions promising that the employer will follow specific disciplinary procedures. So, in Dillon v. Champion Jogbra, Inc., the Vermont Supreme Court found the disclaimer printed in an employee manual was in conflict with the employer's elaborate discipline and discharge system, which the employer said would be carried out in a fair and consistent manner. The Court …show more content…
The court held that the progressive discipline policy outlined in the employee handbook could create an implied contract even though the handbook contained a large, all capital letter disclaimer stating that it did not create a contract. In addition, the court stated that the detailed progressive discipline system set out in the handbook was inconsistent with both the disclaimer language in the handbook and the at-will employment relationship, and that the progressive discipline policy sent mixed messages to employees and could create an implied contract to Champion’s employees. The court ruled that the trial court’s grant of summary judgment was correct for the promissory estoppels claim. The plaintiff’s breach of contract claim case was remanded back to the lower court for further determination.
2. Explain what the implied contract was in this case?
According to the text an implied contract is a type of wrongful discharge claim that limits the