Legal Question in Employment Law in California
Fair labor practices
If a small corporations of only 8
partners signs a contract and in this
document they agree to a no fire clause
for their business manager is this legal?
This business manager is also an
employee of the corporation who hires
and can fire any employee and yet
cannot be fired even by the partners
themselves. Do the employees have
any recourse in this situation? If any of
the employees should be fired what
steps should they take if any? Would
they be entitled to any financail
compensation? One last thing, the
employees are not aware of this
situation at the present time as this
contract has yet to be signed but is very
close to signing. Thanking you in
advance for your advice in this very
important matter, I remain.
Respectfully,
2 Answers from Attorneys
Re: Fair labor practices
I cannot imagine any employer offering a contract to an employee that says the employee can't be fired under any circumstances. At the very least, there must be a "for cause" termination provision in the contract. If this contract says the business manager cannot be fired for anything, you clearly have not consulted with an attorney and there is nothing I or any attorney can do, in this forum, to provide adequate assistance.
You need legal advice and you need it quick. Meet with a business attorney in your area and have this contract reviewed, along with all your other employment policies and procedures. This is not something we can do through the general advice given with Law Guru.
Re: Fair labor practices
For starters, 'employees' have no say in the ownership or management decisions of the business. However, the actual 'shareholders' and the Directors of the corporation should object to the deal, and need to do so quickly to be in compliance with the corporation's by-laws and state corporation laws. If you are a shareholder, and the company doesn't correct this promptly, feel free to contact me about legal action that would be required.