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It is surprising how simple matters are so often misunderstood by employees and even employers. Let’s look at some common myths, and the court rulings that say otherwise.
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1. You can fire an employee without severance during the first three months
It’s a common assumption that the first three months of employment are a probationary period, allowing the employer to move on without consequence if they so choose.
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Courts, however, don’t see it that way. In one case, a two-week employee was awarded 12 months’ severance. Employees who were fired before they even started — because the employer changed their mind about hiring them — have been awarded up to six months’ severance.
Why? Because there is no “probation” unless the parties agree to that in a letter of offer or employment contract. And even if an employee is on probation, the employer cannot simply dismiss them without severance unless the contract explicitly states that. If it merely states that an employee is on probation, then that employee must be provided a fair chance to prove themselves and, if the employer cannot prove that, the employee is entitled to severance, just not as much as if they were not probationary.
2. Employers should avoid saying bad things about former employees because they can be sued
That too is false. References are protected by the courts. As long as the employer honestly believed what they were saying, the employee cannot sue...
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