Practice Quiz

SPHR Human Resources

Category - Relations

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An employee has resigned and during the exit interview tells HR that the reason for the resignation is that for the last three months the supervisor has been hostile, refused to provide instructions on work assignments, given the employee all of the most unpleasant tasks and verbally reprimanded the employee in front of co-workers and customers. The employee may have a cause of legal action based on which of the following?
  1. The employer’s duty of good faith and fair dealing
  2. Constructive discharge
  3. Promissory estoppel
  4. Fraudulent misrepresentation
Explanation
Answer - B - Constructive discharge occurs when the employer forces an employee to resign by creating a work environment that is so unpleasant a reasonable person would resign.

Key Takeaway: The duty of good faith and fair dealing applies to contracts, requiring both parties to act in a fair and honest manner with each other to ensure that benefits of the contract are realized. Promissory estoppel occurs when an employer entices an employee to take an action by promising a reward but then does not follow through on the reward. Fraudulent misrepresentation occurs when an employer makes untrue promises or claims to a candidate.
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