M Civ JI 110.07 Wrongful Discharge: Employment Policies or Terms or Conditions of the Employment Contract - Express or Implied

A term or condition of employment may be either express or implied.

(a) A term or condition is express if the employer and employee have agreed with one another orally or in writing that the employment will not be terminated except in accordance with that term or condition.

(b) A term or condition is implied if the employer has caused the employee to have a legitimate expectation that [ his / her ] employment will not be terminated except in accordance with that term or condition. The employee’s expectation must arise from the employer’s oral or written policy statements, or the employer’s actions, as fairly understood. Plaintiff must believe that [ his / her ] employment could not be terminated except in accordance with that term or condition, and plaintiff’s expectation must have been reasonable under all of the circumstances.

Comment

Toussaint v Blue Cross & Blue Shield of Michigan, 408 Mich 579; 292 NW2d 880 (1980); Bullock v Automobile Club of Michigan, 432 Mich 472; 444 NW2d 114 (1989), reh’g denied, 433 Mich 1201 (1989), cert denied, US; 110 S Ct 1118; 107 L Ed 2d 1024 (1990).

It is an issue for the jury whether the contract or policy has a just cause provision if there is sufficient evidence of 1) an express oral or written agreement or 2) a legitimate expectation that employment will not be terminated except for just cause, which expectation is grounded in the employer’s policy statements. Toussaint at 598–599; Renny v Port Huron Hospital, 427 Mich 415, 428; 398 NW2d 327 (1986) reh’g denied, 428 Mich 1206 (1987); Bullock.

It is necessary that the employee actually believe that employment will not be terminated except for good or just cause. Struble v Lacks Industries, Inc, 157 Mich App 169; 403 NW2d 71 (1986), lv denied, 426 Mich 879 (1986). But an employee’s subjective belief alone is not sufficient to create a just cause contract or policy. Schwartz v Michigan Sugar Co, 106 Mich App 471; 308 NW2d 459 (1981); Riethmiller v Blue Cross & Blue Shield of Michigan, 151 Mich App 188; 390 NW2d 227 (1986).

History

M Civ JI 110.07 was added December 1990.