Firing employees covered by employment agreements in New Jersey

March 26, 2013

Firing employees covered by employment agreements in New Jersey

Article provided by Mariniello & Mariniello, P.C. Attorneys at Law
Visit us at http://www.mariniellolaw.com

A Bergen County school superintendant has been missing school board meetings on a regular basis and parents are demanding his removal. At the February Board of Education meeting for Fort Lee schools, parents expressed concern over the superintendant's failure to appear for approval of the preliminary budget. He also failed to meet with board members to discuss or approve other items on the agenda prior to the meeting.

This issue raises questions about when and how employers can remove or fire employees covered by employment contracts. Contract law governs employment agreements and such agreements should address how employees may or may not be fired.

Types of Employment Contracts

Employment contracts are not always formal documents signed by all parties to the agreement. Employment agreements may be oral, implied or express. Examples may include the following in certain circumstances:
-Oral: Saying in an interview that the employee will be fired only if he or she fails to do a "good job"

-Implied: Distributing an employee handbook which outlines reasonable expectations of employees or establishes a probationary period for all employees

Firing an employee

Whether an employee has a written, oral or implied employment contract, employers must be careful when terminating an employee. If the employment contract is silent as to which circumstances warrant the firing of an employee, most courts hold that an employee may be terminated for "good cause." Good cause generally means that there is a legitimate business reason for the termination. Such reasons may include such issues as:
-Low productivity or poor job performance
-Illegal actions or violations of company policies
-Frequent absences or tardiness
-Disruptions or endangerment of others in the workplace

When an employer is having such issues with a current employee, it is essential that the employer deal fairly with the employee and act in good faith. New Jersey law does not require an employer to give a reason for a termination but it is a good practice for employers to document the behavior substantiating the need for termination and keep detailed records in the event the employee sues the company for wrongful termination. Even more importantly, employers can head off future employment issues by utilizing comprehensive employment agreements at the time of hiring.

Obtain legal assistance

All businesses should maintain good employment practices regarding hiring and firing. If you have questions regarding employment law or need assistance putting together employment agreements or other business contracts, consult an experienced business and contract law lawyer. An ounce of prevention is worth a pound of cure in the business arena and a knowledgeable attorney can help.