Business etiquette and integrity Part II

anothermom2
Wed, 20 Apr 2011 20:46:41 +0000

This is a situation where the ethics and the law may diverge. Even assuming that she knew that this was a typo, depending on the law where you are located, the company may be liable at least this one time. Since I am not a lawyer anywhere outside of the US, the general legal statements below, are not meant to apply to your issue, since the law of the country where you are will be controlling. These opinions are illustrative only.

I do not think this matter is the same as the example of the obvious advertising error. There are elements here that would be viewed as an employment contract (at least where I live.) In contrast, the advertising example is not a contract, but an offer, which can be withdrawn under many circumstances. All caveats that the law of you present place of business must be evalutated: If the terms are in conflict (worksheet vs. benefit description), which they appear to be, there are a number of factors which would be examined if this were to be litigated. The employee has suggested detrimental reliance, i.e. that she would not have moved to another country for this job etc, etc but for this money. If she could prove this, she might be able to be successful in a court. Of course, the company has its rights (i.e. termination under permitted situations - the contract probably has some outs for the employer), amendment after the initial term, non renewal, to name a few. She might not be able to prove detrimental reliance, as there are countervailing facts, too. I assume that this money, even $25,000 is not that big when compared to her total package, which included relocation, school tuition and other benefits. If this amount is a small percent of the total, it may not be reasonable to find that she really did rely to her detriment.

All that said, my own personal view of compensation for employees is that I should pay them what they want or hire someone else. If they are not happy with the money, they won’t do a good job, and they will look for other work. I would probably look to HR, who made the error, to approve the money, and clarify that this will not be paid a second time. She can then stay or go as she pleases during the second year. I wouldn’t like someone who took advantage of a typo, and she might not sue or quit over it if you don’t pay, but I think her behavior is probably average in such a situation.