Barney's company creates promotional campaigns for other businesses.He just learned that the firm lost the Lisle Account,a long-standing customer.On the short-term,this will significantly reduce the need for several creative writers and web content developers the company has on staff.As he prepares to call each employee in for dismissal,Barney reviews the best way to approach this inevitable task.He decides that it is best not to tarnish the image of the company so rather than tell each that they lost an important account,he will blame the need to reduce the workforce on new technology the firm is implementing and his personal evaluation of their work.He also plans to offer a two-month severance,as long as each signs a no-compete agreement good for one year.In that way,he may be able to call them back if new accounts emerge.All of these strategies are considered good procedures that would surely avoid "wrongful discharge lawsuits."
According to Figure 11.8,"How to avoid wrongful discharge lawsuits",Barney should be honest about the business reason that the employees are being dismissed.Employees should be given the true reasons they are being fired.
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