Day 145 - 29 Jun 95 - Page 38

     
     1        they are for a specific period, otherwise they are free to
     2        leave any time they want, and I think we have talked about
     3        the McDonald's, none of us have written contracts.
     4
     5   Q.   So the at will provision of a contract extended the power
     6        of management but not of employees?
     7        A.  No, what it did was it really restored an ability that
     8        previously existed.
     9
    10   Q.   It extended following what you say happened some time 12
    11        years ago when courts began to protect -----
    12
    13   MR. JUSTICE BELL:  Before the courts, the rulings which were
    14        contemplated, could an employer terminate an employee's
    15        contract for just cause?
    16        A.  Yes, they could, my Lord.
    17
    18   Q.   Could they terminate flat an employee's contract just by
    19        saying:  "I do not want you working for me any longer"?
    20        A.  That would be very difficult because you would have to
         prove just cause, challenge.
    22
    23   Q.   You would have to prove just cause before?
    24        A.  Yes.
    25
    26   Q.   When these rulings came in, as I understand it ---
    27        A.  You still have to prove just cause.
    28
    29   Q.   -- yes, so in what way did the employee receive more
    30        rights?
    31        A.  He received more rights because it would be implied
    32        that there was a life long agreement -- I understand the
    33        confusion now -- that there would be a life long agreement
    34        absent of just cause or anything else.  The allegations
    35        were:  "You can work for me for ever" kind of thing, and
    36        then suddenly there is some justification for economic or
    37        otherwise and the employee would say:  "Well, I do not care
    38        there is economic justification or other justification,
    39        I was told that I could remain here my entire life".  The
    40        courts would then say that you guaranteed this person
         lifetime employment, so that even if you had good reason,
    42        if you will, under normal circumstances, you cannot do it.
    43
    44   Q.   Can I make sure I understand?  Before the rulings which you
    45        are talking about, an employer could terminate an
    46        employee's contract for just cause which might either
    47        relate to the employee's behaviour or the employer's
    48        circumstances?
    49        A.  Correct.
    50 
    51   Q.   Financial reasons? 
    52        A.  Correct. 
    53
    54   Q.   After the ruling came in, you could still terminate an
    55        employee's employment for just cause relating to the
    56        employee's poor, bad behaviour, if such it was?
    57        A.  Yes.
    58
    59   Q.   But you could not terminate it for a cause relating to the
    60        employer's circumstances?