Question

In: Operations Management

CASE A bank embarked on a recruitment campaign of university graduates, and Francis, a recent graduate...

CASE A bank embarked on a recruitment campaign of university graduates, and Francis, a recent graduate applied for a position. Francis was interviewed by the bank, and following the interview, the bank offered Francis a position by letter which set out a salary, and a starting date. Francis accepted the position by return mail. A few days after Francis began work for the bank, he was called into the Manager’s office and presented with an employment contract that contained a confidentiality clause, and a proviso that either party could terminate the contract on three month’s notice, or in the case of the bank, payment of three month’s salary and accrued benefits. Francis signed the agreement. Francis worked for the bank for almost fifteen years, moving from the position of trainee through various promotions to the position of Branch Manager of a small branch of the bank. Some month’s later, he had a disagreement with the Regional office of the bank over the quality of certain loans he had made to local businesses, and his employment was terminated. On termination, he was paid three month’s salary and his accrued benefits. A week later, Francis instituted legal proceedings against the bank for wrongful dismissal.

Question : What might be the basis of the claim for wrongful dismissal? What likely response would the bank make to his claim?

Solutions

Expert Solution

The basis of the claim for the wrongful dismissal might be that

  • The dismissal was not performance related but due to disagreement with the regional office.
  • The performance was good and so he worked for 15 years with promotions, there was no time or explation provided for the dismissal.

The bank would revert with the explantion that

  • It was the terms of the contract that has been honored, there is no explanation required for dismissal, though in this case there is, as several loans were passed which were deemed of poor quality, hence the performance has instigted the termination. And this was discussed with Fransis as well.
  • As the office and Francis do not concur in the quality assesment it is better to part ways, and as per company norms the work done by Francis is not apt for the future of the company,hence the termination .
  • Upon termination all benefits as per the contract has been provided, hence the company is no where at fault.

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