Employees can make or break a company. Good employees can attract new customers, produce results and generate income for the company and its owners. On the other hand, other employees can have a negative impact on the company, its reputation and its bottom line. Employment contracts are sometimes used in an effort to retain good employees and protect the company against the damage that some employees can cause. Still, even with employment contracts in place, Ohio companies can find themselves at the center of employment contract disputes.
Media giant CBS has recently found itself at the center of an employment contract dispute. Its former chairman-CEO, Les Moonves, was terminated amid allegations of misconduct and misuse of power while employed by CBS. According to CBS, an investigation into the allegations shows that the termination was for cause.
Under terms of his employment contract, Moonves was entitled to a $120 million severance package if CBS terminated his employment during the period of time set forth in the contract. However, under the circumstances, CBS is claiming that Moonves actions justified its decision to terminate and that he is not entitled to the severance package. The matter will now be up to the courts to decide.
Employment contracts are designed as a protective measure. Employees are expected to perform in a certain manner. Additionally, employers are expected to compensate the employee in terms of wages, commission and/or benefits. When a possible breach occurs, the Ohio company can find itself entangled in employment contract disputes thus requiring legal assistance.