Employment Manual Can Alter Employment-At-Will Status
Champion Jogbra, Inc. has an employee manual that it distributes to all employees at the time of their employment. The first page of the manual states the following in capitalized print:
The policies and procedures contained in this manual constitute guidelines only. They do not constitute part of an employment contract, nor are they intended to make any commitment to any employee concerning how individual employment action can, should, or will be handled.
Champion Jogbra offers no employment contracts nor does it guarantee any minimum length of employment. Champion Jogbra reserves the right to terminate any employee at any time "at will," with or without cause.
During the period from 1996 to 1997, however, Jogbra developed what it termed a "Corrective Action Procedure." This procedure established a progressive discipline system for employees and different categories of disciplinary infractions. It states that it applies to all employees and will be carried out in "a fair and consistent manner." Much of the language in the section is mandatory in tone.
Jogbra hired Linda Dillon as a full-time employee in August 1997. In the summer of 1998 she applied for, and was given, the position of "sales administrator."
On September 29, Dillon was called into her supervisor's office. The human resources manager was also present. They informed Dillon that things were not working out and that she was going to be reassigned to a temporary position, at the same pay and benefit level, that ended in December. She was told that she should apply for other jobs within the company, but if nothing suitable became available, she would be terminated at the end of December. According to Dillon, her supervisor stated that he had concluded within ten days of her starting that "it wasn't going to work out." Prior to the meeting, Dillon was never told her job was in jeopardy, nor did Jogbra follow the procedures laid out in its employee manual when terminating her.
Dillon applied for one job that became available in the ensuing months, but was not selected for it. She left Jogbra in December when her temporary position terminated. Dillon then brought suit against Jogbra for wrongful termination. Jogbra filed a motion for summary judgment, which the trial court granted. On appeal, Dillon contended that she had raised a factual issue whether Jogbra's employment manual and practices had altered her at-will employment status. The Supreme Court of Vermont agreed, and reversed the grant of summary judgment.
Dillon v. Champion Jogbra
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