Reference no: EM133097852

Danica is a manager at ABC Company. Her employee Lloyd was caught taking home five pens that belong to the company. In addition, approximately $300 that was in the company safe went missing. Although the security camera was broken on the day it went missing, it makes sense that Lloyd took the money as it fits a pattern: since December of 2011 when Lloyd was hired, employees have complained that their lunches have been stolen, there has been vandalism of the men's washroom and there was one incident of a racial slur written on an employee's locker. Only Lloyd, Danica and two other employees have access to the safe. Danica also discovered that Lloyd wrote a racist joke on someone's wall on facebook. Given the totality of all the facts, she has made the decision to terminate Lloyd. She wants to pay him as little as possible. You advise her that:

1. The facts do not support a for-cause termination but that she can terminate him for near cause. As a result, she can reduce the total amount of the severance package.

2. The facts support a for-cause termination and therefore no termination pay or severance pay are required.

3. Danica should 'paper the file' ie conduct an investigation so that there is evidence of his guilt on file. Only then should she terminate for cause.

4. Danica should be careful as Lloyd has Charter rights.

5. Danica does not have sufficient evidence to terminate Lloyd for cause as she has not conducted a proper investigation and does not have sufficient proof.