John Li has worked as manager of a video store for six years. Since the 7-Eleven store next door began renting movies for 97 cents, his business has fallen off drastically. Accordingly, the owner of the business told Li that, because the business had fallen on such hard times, he would take over managing and Li would have to take over the counter duties. The present counter clerk would be laid off. The owner also told Li that his wages would be reduced by 15%. When Li came to work the next day, he told the owner that he wouldn't accept the job working at the counter. The owner became angry and said, "If you don't like it, then you can leave! I don't have to put up with your insubordination one minute!" Li left and then sued the owner for unlawful dismissal. The owner argued that he had "just cause": economic slowdown and disobedience. Based on the above facts, identify the true statement.

Question

Quizplus · Accepted Answer

The owner unilaterally changed Li's job without his consent and insisted that he do it. This amounted to dismissal without cause and without notice or pay in lieu thereof. Additionally, the owner's demand was unreasonable given Li's managerial position and the fact that he had been working in the store for six years. The economic slowdown may be a contributing factor, but it does not justify Li's dismissal without proper notice or pay in lieu thereof. Finally, Li would be required to mitigate his losses by looking for a new job even while the case is being resolved.

John Li Has Worked as Manager of a Video Store