Opinion ID: 1878384
Heading Depth: 1
Heading Rank: 2

Heading: Did employee handbook become part of plaintiffs' employment contracts?

Text: It is undisputed that plaintiffs were hired for indefinite terms, had no written employment contracts, and could have left their employment with the company at any time. We have held that, as a general rule, such employment relationships may be terminated by the employer at any time without cause. Thomsen v. Independent School District No. 91, 309 Minn. 391, 244 N.W.2d 282 (1976); Cederstrand v. Lutheran Brotherhood, 263 Minn. 520, 117 N.W.2d 213 (1962); Skagerberg v. Blandin Paper Co., 197 Minn. 291, 266 N.W. 872 (1936). We have, however, followed the modern trend in recognizing exceptions to employment at will. See, e.g., Grouse v. Group Health Plan, Inc., 306 N.W.2d 114 (Minn.1981); Bussard v. College of St. Thomas, Inc., 294 Minn. 215, 200 N.W.2d 155 (1972). Specifically, we have determined that, under certain circumstances, employee handbook provisions may create contractual obligations enforceable against an employer. Pine River State Bank v. Mettille, 333 N.W.2d 622 (Minn.1983). In Pine River, we held that personnel handbook provisions, if they meet the requirements for formation of a unilateral contract, may become enforceable as part of the employment contract. 333 N.W.2d at 626-27. To create a binding unilateral contract, a promise of employment on particular terms of unspecified duration must be presented in the form of an offer and must be accepted by the employee. Id. at 626. The offer must be definite in form and must be communicated to the employee. Id. Here, definiteness is the only issue because the company acknowledges that the handbook was distributed and therefore communicated to each plaintiff at or near the time of her employment. Whether a proposal constitutes an offer for a unilateral contract is determined by the outward manifestations of the parties, not by their subjective intentions. Cederstrand, 263 Minn. at 532, 117 N.W.2d at 221. The employee handbook sets forth the company's human resources policies. Among its provisions are sections on Job Security and Dismissals. The section on job security appears to be no more than a general statement of policy: Equitable seeks to ensure the job security of all salaried employees. General statements of policy do not meet the contractual requirements for an offer. Pine River, 333 N.W.2d at 626. The language on dismissals, however, is definite: Except for misconduct serious enough to warrant immediate dismissal, no employee will be discharged without previous warning and a period in which to bring performance up to a satisfactory level. The company argues that the language in its handbook is not definite enough to constitute an offer. We disagree. The language used clearly limits the right to freely dismiss employees and plainly states that in certain circumstances all employees are entitled to a warning and to a probationary period prior to dismissal. Further, the handbook states that only serious misconduct can constitute a ground for immediate dismissal. While the handbook does not contemplate every possible question regarding procedures for employee dismissals, the language is definite enough to permit a jury to conclude that plaintiffs received certain contractual rights. The precise nature of those rights is unclear, but where the terms of a contract are unclear, it is for a jury to determine the intent of the parties. See Diesel Truck Drivers Training School, Inc. v. Erickson, 256 N.W.2d 642, 645 (Minn.1977). A jury verdict will not be overturned on appeal unless it is manifestly and palpably contrary to the evidence, Stuempges v. Parke, Davis & Co., 297 N.W.2d 252, 256 (Minn.1980); and is such that no reasonable mind could find as did the jury. Belden Porter Co. v. Kimball Co., 303 Minn. 98, 99, 226 N.W.2d 310, 310 (1975). There is ample evidence here to support the jury's decision. Because plaintiffs received handbooks at the time they began employment, their continued employment until discharged constituted acceptance of the offer of a unilateral contract and provided the necessary consideration for the offer. Pine River, 333 N.W.2d at 627. We therefore conclude that the handbook's dismissal provisions were part of plaintiffs' employment contracts.