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,


Asked on 11/02/06, 2:51 pm

2 Answers from Attorneys

Michael Kirschbaum Law Offices of Michael R. Kirschbaum

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.

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Answered on 11/06/06, 8:13 pm
Terry A. Nelson Nelson & Lawless

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.

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Answered on 11/06/06, 9:00 pm


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