"At-will" employment refers to a common-law rule that the employment relationship may be terminated by the employer or the employee at any time, for any reason, with or without cause or notice. For employers, the ability to terminate an employee whenever they want and for whatever reason is invaluable. This perception, however, is not quite accurate. Over time, the establishment of various federal and state regulations and the application of certain employment law concepts have created conditions and layers much more in favor of today's employee. To minimize the risks of wrongful termination claims, every employer needs to understand at least the three big exceptions to the employment at-will concept:
Public Policy: A wrongful discharge when the reason for employment termination is contrary to an established state public policy (i.e. terminating a pregnant employee protected under the federal Family Medical Leave Act).
Implied Contract: A contract between the employer and the employee although no written documentation exists regarding the employment relationship (i.e. “Probationary Period” language in the Employee Handbook).
Covenant of Good Faith: An implied agreement the employer is to treat employees honestly and fairly (i.e. A “just cause” standard placing a burden of proof on the employer to justify the basis for discipline or discharge of an employee.)
Tool of the Month: HR Checklists
Whether faced with a hiring, performance management, or employment termination issue, the manager needs to make sure certain steps are covered. To help keep track, you may review and download various HR Checklists developed by HR professionals.To learn more about the HR Checklists, become a client of AMS and receive free HR support.
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