Myths in Employment Law: Termination, Overtime, "At-Will" and More

Employment myths often get in the way of creating harmonious working relationships.  These myths are relied upon either to the disadvantage or misdirection of the employees or the company.

Urban legends on the rights and obligations of employees may be destructive for an organization. These legends are often distorted or not true at all. Some of these employment legal myths are as follows:

Dismissal and Job Termination

Myth

Employer can just dismiss an employee with less than a year of service.

Truth

Employer can only dismiss an employee after observing substantial and procedural requirements. Otherwise, an employer may be open to a wrongful termination case or increased compensation claims.

Generally, an employee needs a year of service to bring a claim. However, a dismissal due to a trade union membership or pregnancy may be brought as an employment case regardless of employee’s year of service.

Myth

Employer can just dismiss a 65 year-old employee without claims.

Truth

Employers must observe statutory retirement procedure. However, they are allowed to retire an employee at age 65 or above.

Employment Contract

Myth

Verbal agreement of employment has no force and effect.

Truth

Verbal agreements just like written ones are binding. A verbally employed individual still possesses rights such as right to minimum notice, claim for unfair dismissal or be protected from discrimination.

More Info:

Contract Labor LawEmployment Law Contract

Misconduct/Insubordination

Myth: Employee may be summarily dismissed for gross misconduct.

Truth: Employer must still follow the statutory requirement of notice and hearing.

Probationary Employment

Myth

A probationary employee is not entitled to statutory rights until completion of the probationary period.

Truth

The rights of probationary employees exist upon the start of employment. The right against wrongful termination is based on the original date of employment and not after the completion of the probationary period.

At-Will Employment

Myth

An at-will employee may be terminated arbitrarily.

Truth

While an at-will employee may be terminated with or without valid grounds, such termination only protects employer against a breach of employment lawsuit. It does not shield employer from other claims such as defamation, discrimination and retaliation.

Overtime Pay

Myth

"Comp" time may be given in lieu of overtime pay.

Truth

Unless a public employer, overtime pay must be paid. The Fair and Labor Standards Act specifically limits payment of comp time to public employers.

Myth

Only hourly paid employees are entitled to overtime pay.

Truth

While salaried employees are exempt from overtime pay under the FLSA, such exception only applies to employees who meet the requirements for exemptions are exempt.

If any of these myths is applied to you, an employment case may be brought against the employer. With the assistance of a wrongful termination lawyer, claims may be recovered fast and easy.

More info: Employment Law