Case: Harvert v. Unity Medical Ctr., 428N.W.257, Minn. Ct. App,. 1988.

Courts have ruled that an employee handbook IS an employment contract and must be followed by both employee and employer. Look closely at employment contracts and the employee handbook; "The trial court granted Unity Hospital's motion for summary judgment (immediate dismissal) on all claims, holding Unity's employee handbook was sufficiently definite to form an employment contract, but Unity did not breach that contract by terminating appellant for theft. " Describe this case in 100+ words. Address the following questions in 200+ words. How do you feel about stealing food from the cafeteria and did the hospital overreact? What would you have done if you were the supervisor? What is your suggestion on what should the hospital policy be? Remember, when you set policy, you affect all future actions.

Sample Solution

Case Summary: Employee Handbook as Contract - Theft and Termination

This case involved an employee at Unity Hospital who was fired for stealing food from the cafeteria. The employee argued their termination was wrongful because the hospital handbook, which they considered an employment contract, did not explicitly state termination as a consequence for stealing food. The trial court disagreed, ruling that the handbook was a binding contract and sufficiently clear, but the employee's action constituted a breach that justified termination.

Full Answer Section

Analysis and Considerations:

Stealing and Overreaction: While stealing is wrong and harms workplace trust, the severity of the offense (food theft) compared to the punishment (termination) could be debated. Depending on the value of the stolen items and any past offenses, termination might seem like a harsh penalty.

Supervisor's Role:

Investigate: The supervisor should first investigate the situation thoroughly to gather evidence and understand the employee's motives.
Progressive Discipline: Assuming the theft is confirmed, a progressive disciplinary approach might be more appropriate. This could involve a verbal warning, written reprimand, or suspension before resorting to termination.
Consider Alternatives: Depending on the severity, offering repayment or community service as restitution could be considered.

Hospital Policy Recommendations:

Clarity: The employee handbook should explicitly outline consequences for theft, including potential termination for repeated offenses or high-value items.
Proportionality: The policy should establish a tiered system of consequences based on the severity of the theft.
Alternative Actions: The policy could include options for restitution or disciplinary actions short of termination for minor offenses.

Setting Policy for the Future:

A well-defined policy with clear consequences helps manage employee behavior and ensures fair treatment. Balancing the severity of the offense with appropriate disciplinary measures fosters a culture of trust and accountability within the workplace.

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