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After seven years with a local bank in Michigan, Arthur Wayne sought the assistance of an employment agency to obtain a job that would give him more opportunities for advancement. Wayne had graduated with a degree in Business Administration and had completed $15$ hours toward his MBA in Finance. The employment agency referred him to our company. After several pre$-$employment interviews and a psychological test, Wayne was hired as an assistant to the company treasurer, Sara Bell. His duties primarily consisted of analyzing and preparing certain financial reports under the direction of Bell. Wayne came to us with excellent work experience and admirable references from his previous employers.

According to Wayne, he felt at the time of his employment that he had a contract with EcoCare that was partly oral $($Bell$$s statements during the job interview$)$ and partly written. Wayne told us that during his pre$-$employment interview with Bell, he had specifically asked about job security and was told that as long as he did his job, he could remain with the company until he reached retirement age. He further indicated that he had been told by Bell that if he came to EcoCare, he would not have to look for another job because she knew of no one ever being discharged. Wayne also told us that a copy of the Supervisory Manual was handed to him during his interview with Bell. He said he specifically recalled reading through the sections of the manual that pertained to discipline and termination procedures at that time $($see the Appendix for relevant sections$).$

At the end of that interview Bell made Wayne a job offer, which he accepted. The Manual is given to all management employees as an aid in supervising persons in their charge and not as a declarative of the contract terms of an employee$$s hire. Our personnel policy has always been to discharge for just cause only, pursuant to the procedures described in the manual. These procedures apply to all EcoCare employees who have completed their probationary period.

During his five years as assistant to the treasurer, Wayne received above average performance ratings. Last year, he was given the responsibility of administering the company car program. In April of this year, employees began complaining to Bell and Findlay about Wayne$$s handling of the program. Wayne indicated that he$$d had only a brief conversation with Bell about these complaints before the meeting of May $6.$

We also spoke with Bell and Findlay about Wayne$$s employment and subsequent termination. According to Bell, she did tell Wayne during the interview that he would have a job as long as his performance was satisfactory. Bell told us that she made that statement based on her understanding of our company$$s policies and did not intend her statement as a promise of a permanent job.

Bell and Findlay report that Wayne was fired because of continued personality conflicts with other employees. They report that he was unable to work with other employees and that this was an important job requirement for anyone managing the company car program. After receiving numerous complaints about Wayne$$s handling of the program, they finally requested from him various reports and documents concerning the odometer discrepancies. Ultimately, they called a meeting with Wayne in an attempt to resolve the problems. During the May $6$ meeting, Wayne was reported to have been defensive and insubordinate and unable to provide any satisfactory answers to their questions. At the conclusion of the meeting, they both felt that it would be in the best interest of the company if Wayne were asked to resign. Bell called Wayne into her office the next day and asked for his resignation.

$($Note: If the unacceptable behavior is repeated between six months and one year, the last disciplinary action will be applied. If the behavior is repeated after one year, it will be treated as a new occurrence for disciplinary purposes.$)$

All discipline shall be administered in a fair, consistent, and reasonable manner within EcoCare.

Whenever the work performance or personal behavior of an employee is below department standards, a series of progressive, corrective steps will be taken. Before any of these steps are undertaken, however, the employee shall be counseled about his or her performance discrepancy, what he or she must do to improve the performance, and the action the supervisor will take if the performance is not corrected.

Within our discipline system, discipline will be given only for cause. Furthermore, the disciplinary action should fit the problem it is intended to correct.

All disciplinary action should be duly documented and reported by the supervisor on Form $29$B$.$ The form also requires the employee$$s signature.

The following series of steps shall be followed in administering discipline within EcoCare:

Oral Warning: Superviso