From the point of view of violation of public policy or breach of a covenant of

Question

From the point of view of violation of public policy or breach of a covenant of good faith and fair dealing, what would be the outcome for this case:

An employee was suspended pending discharge for sleeping and loafing on the job. The employer offered to change the penalty to suspension without pay if the plantiff would sign a last chance agreement under which he waived and released any claims, suits, or causes of action against the defendent. The employee refused to sign because he was unwilling to waive his rights to state unemployment benefits or workers compensation. Under state statute, agreements to waive such rights are invalid. The employee is discharged.

Explanation / Answer

The employee will still be discharged but the employer would probably face a heavy fine for attempting to make an agreement which was in violation of the state statute. (Of course, the employer could then plead his own case in court)

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