Legal Question in Employment Law in New York

Improper dismissal? - verbal guarantee of employment

I am an executive at a fortune 100 company.I was informed by the ceo that my function and department was to be transferred to another location. As a courtesy to me, he said,I could choose to transfer with it or remain in my current location where i would be assigned new responsibilities. I preferred to remain in my current location but wanted to be assured that this decision would not reflect negatively on me or my career. He indicated not only would either decision result in a "win/win" situation for me as well as for the company but it was his wish that I remain with the company for the rest of my career.I transferred the function smoothly and effectively and awaited a few months for new responsibilities.I have now been informed by the head of personnel that I am to be laid off in the next couple of days.I feel that the ceo gave me a verbal guarantee of employment and once my usefullness was no longer necessary , (i.e. after the function was transferred), he reneged on our agreement.I would be curious on your opinion if this would qualify as an improper dismissal and if so what can i do before, during and after my layoff?


Asked on 7/28/99, 12:40 pm

1 Answer from Attorneys
Patrick Begos Begos & Horgan, LLP

Re: Improper dismissal? - verbal guarantee of employment

Generally, an oral agreement of employment is enforceable, unless, by its express terms, it was intended to last for more than 1 year. In that case, it would have to be in writing to satisfy the statute of frauds. If the time period is indefinite, then the statute of frauds should not bar enforcement.

This is only part of the analysis, though. You need to prove that was an agreement sufficiently definite to be enforced. If all the CEO said was that "it was his wish" that you remain with the company, it might not constitute a binding employment agreement -- i.e. it may not have been a commitment by the company, rather than simply an expression of the thoughts of the individual.

My advice to you is that you retain a lawyer to evaluate the situation in detail. Whether you have a valid claim will depend on the details.

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Answered on 7/29/99, 4:52 pm


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