Compensation Dispute

Compensation Dispute

Students Name




Business dispute regarding employee compensation

Dispute resolution is a process by which a party either loses or wins. In this study, a compensation dispute involving an employee and his employer should be resolved fairly and correctly. The following is an example of a compensation dispute that was not fairly done to the employee.

A pool and compound cleaner, who had been dismissed after a sports club had hired a better qualified person was granted compensation. The sports club employer disputed that a new structure meant that he needed one pool cleaner and not two, and he had selected the other worker that he had employed for one month since he was older and would find it difficult to find a new job and he had a family to sustain. The Commission discarded this, claiming that this was discrimination against the dismissed man since he was young, single and did not have a family to sustain. Dismissing the young man and keeping the older man since he had experience, and talent was not ethical.


Employers should not discriminate when dismissing an employee (Swedlow, 2004). When an employee doesn’t have the required skills it is advisable to get him trained for the required skills even if it means deducting his wage to cover his training expense. This has to be an agreement between the employer and the employee. For instance the older man could clean compound and the swimming pool and could swim but the younger man could not swim but could do the cleaning. The employer should have taken him for swimming classes to ensure he could swim and save a life in case of any pool incidents. Dismissing him is an unethical management principle.

Unethical to pay employees little

Most employers take advantages of their employees by refusing to pay their wages. In cases where the employer calculates the employee wage in a lower based calculation than one earns, then the employee can claim for his appropriate pay. Every employee should be compensated for every work they do regardless of being in regular hours or out of the business premises. The Fair Labor Standards Acts provides non-exempt employees the right to get overtime payment for all hours in cases where an employee works in excess of 40hours within a week of one and one half times the standard rate. When an employee has problem in getting compensation benefits, one should consult an experienced attorney to claims and fight ones infringed rights. Therefore it is unethical to pay employees as little as possible, since it will not be a fair deal and the employee will be oppressed (Ballantyne, 2011). the Alternative dispute resolution program gives employers and employees the chance to handle and resolve disputes regarding workers’ compensation on their own s with the professional help of an expert called an ombudsperson who aids and counsel union employees on complaints, claims and inquiries, and to explain the effects of the law so that disputes are resolved at the earliest date before things get worse and involves expensive law suits.

Ethical issues

Every employee has a right not to be discriminated by their employers because of their age race gender or religion. In this case the young aged pool cleaner has been discriminated due to his age and his rights have been violated. Violations of these rights can be reported to the Equal Employment Opportunity Commission (EOC) without being scared of employer reprisal (Swedlow, 2004). Evaluating what is ethical and unethical involves choosing what is right and wrong respectively. According to this case, when one evaluates the reason as to why the sport club employer is dismissing the employee, there is no wrong that he has done has and therefore nothing is unethical. On the other side the employee has been loyal to the sports club and the employer has been looking for a reason to dismiss him and he did not get.

The dispute the employer claims is not valid and cannot be agreed upon since most firms look forward for young people to work for them to be employed for long. Having a family is a personal concern and one is not hired because he has a family or not. The employee should claim for full compensation and report to the EOC since a business is supposed to provide an equal opportunity work environment that equalizes every employee and does not discriminate the employees rights.


Ballantyne, D. S. (2011). Dispute prevention and resolution in workers’ compensation: a

National inventory, 1997-1998. (231pages). United States of America: Workers Compensation Research Institute.

Swedlow, A. (2004). California worker’s compensation alternative dispute resolution system:

Attorney involvement rates & claim costs. (p. 9pages). California: California Workers’ Compensation Institute.

"Order a similar paper and get 15% discount on your first order with us
Use the following coupon

Order Now