Question
Bey Knowles is interviewing for the Chief Financial Officer position at ABC Trading Company.The interview goes well and at the end of the interview, Jay
Bey Knowles is interviewing for the Chief Financial Officer position at ABC Trading Company.The interview goes well and at the end of the interview, Jay Zimmer, ABC's Vice President of Hiring, shakes hands with Bey and tells her that she has the job "for as long as she wants".Jay also tells Bey that she can start working the following Monday morning and also tells her that she will be paid $120,000 per year and will get "all the employee benefits offered by the company". Bey is thrilled about the opportunity and accepts the job immediately. Bey and Jay shake hands again as Jay says he looks forward to seeing her on Monday and looks forward to working with her for a long time to come.
Bey goes home and immediately calls her current employer and quits her current job. She spends the next few days before starting her job at ABC, looking for an apartment closer to ABC. She finds the perfect apartment and puts a down payment on it.
The following Monday, Bey shows up for work at ABC as she and Jay had agreed upon. Jay meets her at the door and tells her that things have changed a bit and now she is the new Payroll Accounting Manager and will be making $50,000 per year with no benefits other than health insurance.
Bey reluctantly accepts the new position and begins work.She does a good job and is well-liked but a month later, Jay tells Bey that ABC has decided to outsource all of its payroll functions and, therefore, Bey is no longer employed by ABC.
Even if the requirements for an employment contract are not met, the doctrine of promissory estoppel may create an employee-employer relationship if (a) the employer makes a clear promise, (b)the employee relies on that promise, (c) the reliance was expected or foreseeable and (d) the reliance was detrimental to the employee. Does the doctrine of promissory estoppel apply to create a contract of employment between Bey and ABC for the CFO position at $120,000 per year? Explain
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