Legal Risk

Legal Risk and Opportunity in Employment
The three legal encounters are provided with answers and assessment asked for by NewCorp. The assessment covers the liabilities and rights of the organization as employees and employer work collectively for business operations. In addition, the legal principles are recognized to support recommendations.      
      When one party acts on behalf of another is a principal-agent relationship and when another party acts for another per directions this is an agency relationship.   The relationship exists because both parties agree to the relationship and both parties have responsibilities and duties. Employers are referred to as principals in the employer-employee relationship. People hired doing a job for the principal are agents (Jennings, 2006, chap. 18).   Therefore, the employees and NewCorp comprise of an agency relationship, which the employees are agents and NewCorp is the principal.
Legal Encounter 1:
    A new manager by the name of Pat Grey relocated to work at NewCorp. Pat was discharged after 3 months with 30 days severance pay. The company advises him the job is not working out. He was given no indication of any issues on-the-job.
      Employment at will is employees work at the discretion of their employers. When a company hires an employee by written or oral agreement, they are an agent, which means they have authority to act on behalf of the organization (Jennings, p. 18).   Pat signed an understanding observing employment at will in reference to discharge and employment, but he received a Personnel Manual, which explained how unsatisfactory employees were handled he believed the freedom to firm him at will was limited by the company. An employee personnel manual is viewed as a contract in some courts because of the policies, procedures, and promises.   A determination if a personnel manual and the terms represent a contract is the reliance of an employee on its terms and procedures (Jennings, 2006,...