Question

In: Economics

Please describe the implications of changes in the social contract between corporations and employees. Please briefly...

Please describe the implications of changes in the social contract between corporations and employees. Please briefly discuss exceptions to the EAW Doctrine. 3-5 sentences

Solutions

Expert Solution

Changes in the social contract between corporations and employees have evolved how the businesses or employers compensate and evaluate the worth of their employees.

This is affected by a few basic variables,

  • Tenure of the employee: Nowadays, the companies are focusing on short-term salary-based policy on retaining their employees.
  • Performance of the employee: With the employees being upgraded with better information and skills, the companies have to evaluate the worth of each employee accordingly.

There are many other programs concerning employees that have evolved such as paid leaves, Office nursery, maternity leave, health benefits, etc.

This involvement has certainly benefitted society and the relationship between employers and employees.

Exceptions to Employment-At-Will Doctrine

  • Public Policy: The employees cannot be dismissed by the company if such action violates the public policy of the state or statues. The state can follow its own or the federal policy can be employed.
  • Implied Contract: There is an implied contract between an employer and an employee. Therefore, an employer cannot fire the employee after this relationship is formed between them.
  • Implied Covenant of Good Faith and Fair Dealing: This exception emphasis the good faith in every employment contract formed between employer and employee. Meaning thereby, termination of an employee cannot take place if the reason behind it is the bad faith or malice intention.

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