Wrongful discharge suits have increased in recent years, and documented personnel policies and procedures have been used to build cases against employers. Specific cases are discussed in relation to such issues as judicial erosion and employee contracts, and recommendations are offered on ways to develop legally sound hiring programs, quality control systems, and advancement programs. These elements are critical to a CPA firm. When inadequate attention is paid to the legal effects of this documentation on employee rights, unforeseen litigation may result. The law has changed with respect to the termination of employees.
Courts try more civil cases against former employers on the grounds of wrongful discharge.
Often, documented personnel policies and procedures are used in formulating a case against an employer. Virtually all CPA firms view employees as being at-will. Today, there is a growing body of law granting new common law rights to some terminated at-will employees. The most prominent cause of this change has been the sudden surge in judicial decisions recognizing wrongful discharge or unjust dismissal. Judicial Erosion Recent cases have sent a clear message to employers that dismissal for illegal demands on employees or demands on employees to do illegal acts can lead to a successful wrongful discharge litigation.