In the case of Pugh v See's Candies, an employee (Pugh) worked for 32 years with an implied contract. He was verbally told by the former company president that as long as he was loyal to the company and did a good job that his future would be secure.
Because Pugh was employed for 32 years, loyalty was not an issue and there were no problems with his job performance due the fact that he had never been disciplined and received bonuses and promotions based on that performance.
The company was wrong by firing him and Pugh had the right to sue for breach of the implied contract. The court should find in favor of Pugh. DB
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The court decided that the employer’s statements and actions had created an implied contract. The employee should be allowed to go to trial on his wrongful discharge claim. The court maintained that it was necessary to consider the totality of the circumstances and not just the employer’s relatively oblique statements. These circumstances include the duration of employment (32 years in this case), commendations and promotions received (there was a consistent record of bonuses and promotions), the lack of any criticism of his or her work (there was no record of prior criticism), assurances given, and the employer’s policies (there was an implicit policy of not terminating without just cause).
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