Contractual Relationship


A contractual relationship exists when employers and employees have a legal agreement regarding how employee issues are handled. Under such contractual arrangements, discharge may occur only if it is based on just cause. Inasmuch as a distinct definition of just cause does not exist, they are guidelines derived from labor arbitration of collective bargaining relationships under which just cause can be shown as follows:

  • Was there adequate warning of consequences of the worker’s behavior?
  • Are the rules reasonable and related to safe and efficient operations of the business?
  • Before discipline was rendered, did a fair investigation of the violation occur?
  • Did the investigation yield definite proof of worker activity and wrong doing?
  • Have similar occurrences, both prior and subsequent to this event, been handled in the same way and without discrimination?
  • Was the penalty in line with the seriousness of the offense and in reason with the worker’s past employment record?

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