Brown,at age 45,was hired as the general manager of the CountrySide Shipping Company by Carrothers,the company president.The initial contract of employment was for a three-year term,and was embodied in an exchange of letters between Brown and Carrothers in 1992.At the end of the three-year term,Brown continued on as general manager,receiving annual increases in salary,executive profit sharing,pension contributions,and discretionary bonuses,if business was exceptionally good in a given year.In January 2004,for no apparent reason,Carrothers called Brown into his office and told him his services were no longer required.Carrothers offered Brown a week's salary as "severance pay." At the time of termination,Brown was earning a salary of $70,000 per year,received company-paid pension contributions of $5,000 annually,and,in 2003 had received $3,000 from profits shared,and a $5,000 bonus.
-At Common Law,Carrothers is required to give Brown reasonable notice of termination.

Question

Quizplus · Accepted Answer

At common law, an employee who is terminated without cause is entitled to reasonable notice of termination or pay in lieu of notice. In this case, Brown was terminated without cause after working for the company for over 10 years, and therefore is entitled to reasonable notice or pay in lieu of notice. The fact that Brown's initial contract was for a fixed term does not necessarily override his common law right to reasonable notice at the end of his employment.

Brown,at Age 45,was Hired as the General Manager of the CountrySide