The employer, Yummy Biscuits Inc., has decided that it needs to make significant changes to its benefits package to cut costs in an increasingly competitive marketplace. Yummy Biscuits wants to know the best way to introduce the changes so that employees will respond positively and so there won’t be any legal problems. It has approximately 50 employees and there is no union. How would you advise this employer? Be sure to answer the following:
a. How do the following terms relate to this fact situation: constructive dismissal, contract repudiation, and fundamental change of the employment agreement?
b. If this is a fundamental change, what are the two possible approaches to change the employment agreement? Explain each as well as their implications.