Nike is one the most iconic brand that is used by billions of people around the globe. It was founded by Phil Knight and Bill Bowerman in 1964 who named their brand after the Greek Goddess of victory, Nike. The company that initially started as a distributor of shoes, went on to start its shoe line and gained enormous success. Here, let’s know about Nike Termination Policy.
Owing to its ever-growing popularity, the brand later diversified into apparel, accessories, and sports equipment. The company’s punchline of ‘Just do it ’ is one of the most famous slogans in the world. Being the most famous sports brand, Nike sponsors numerous top-class athletes like Cristiano Ronaldo, LeBron James, Kylian Mbappe, Serena Williams, Rafael Nadal, Kevin Durant, and many more.
Working for this prodigious and well-renowned company is a dream job for anyone. The perks and incentives that Nike offers to its employees are tempting and hard to resist. Free merchandise, stock options, and a hefty paycheck are some of the perks enjoyed by Nike employees. But working for such a marvelous brand comes with many challenges indeed. Some of them are adhering to the terms and conditions of employment, following the rigid rules, and obeying business ethics. However, the company clearly states all of the terms and conditions under which an employee can be terminated.
Nike Termination Policy
Failing to obey the business ethics or violation of any rule of the employment contract might get you into deep trouble and you may even get terminated from the company. Nike has clearly stated the termination policy in its employment contract. The termination clause mentioned in the contract gives us a brief insight into all the conditions under which an employee can be terminated and it also specifies the procedure to be carried out after the termination of an employee. In case the employee objects to his termination, the guidelines, and steps needed to resolve the issue have been specified in the contract.
Conditions Under Which An Employee Can Be Terminated
There can be several reasons for the termination of an employee. These conditions are mentioned in the employment agreement as follow:
- For Cause: Nike can terminate an employee after giving them a written notice regarding the cause of termination. The cause of termination can be:
- Continuous negligence of the duties even after receiving a written notice
- Any type of material dishonesty
- In case the employee is convicted of a felony
- Violation of terms of employment agreement
- Without Cause: Nike can also terminate its employees without any cause after handing them a notice. In case of termination without cause, Nike has to provide an appropriate release document to the employee within three days of termination. Nike also has to offer severance pay to its terminated employee within 30 days. Severance pay depends on factors like base salary, the number of years the employee has served the company, performance share plan, etc.
- Without Any Good Reason/ Personal Reasons: An employee can himself terminate his employment contract at any time after submitting a written notice to the company
- Death: In case an employee dies during the employment contract, his contract automatically terminates and Nike will pay the employee as if the employee was terminated for a cause.
- Disability: Nike can terminate its employee if they are found eligible to avail the benefits of a long-term disability policy. This policy is usually used for senior employees.
Does Nike Often Terminate Its Employees?
Nike is a well-reputed brand that is often known for rewarding its employees with the most commendable perks and incentives. It offers one of the most creative and employee-friendly work environments. Termination is a word that almost every employee around the world dreads equally. So the main aim of Nike is to avoid employee termination as far as possible. They consider this option only under severe circumstances.
Frequently Asked Questions
Does Nike offer severance pay if they terminate an employee without any cause?
It has been clearly stated in the employment agreement that in case Nike terminates the employment contract of an employee, then it has to offer them severance pay. The severance pay depends on various factors such as the longevity of the employee, per week salary, performance share plan, etc.
Can a former Nike employee work in another athletic brand?
The Nike employee agreement has a clause named ‘Covenant Not To Compete’ which specifies that an employee cannot own, deal or manage any brand that deals in athletic footwear, apparel, or sports equipment and directly compete with Nike during the time of their employment or one year thereafter.
Can an employee himself terminate his employment contract?
Yes, employees can themselves terminate their employment contract too under the following cases:
- A breach in the employment contract by Nike
- Personal reasons
- A change in ownership or management of Nike
- A change in title or reporting relationship of the position of the employee.
- In case the employee has to move their office from New YorkCity to any other location without their consent.
