First published: January 13, 2023 @ 6:00 pm
Sometimes, people are hired to do a job for a specific period of time, with the understanding that they will then be let go.
Other times, people are hired on an “at-will” basis, which means that the employer could fire the employee at any time and for any reason.
To understand what this means for you, and your rights as an employee, it is important to know the basics of at-will employment.
What is an At-Will Employment?
At-will employment is a common employment practice in the United States. This means that an employer can fire an employee at any time without warning.
Similarly, the employee is free to terminate the employment relationship at any time, for any reason. It gives businesses the flexibility to change the terms of employment without notice.
This is legal as long as it does not violate state and federal anti-discrimination laws. It means employers cannot fire an at-will employee for unlawful reasons such as illegal discrimination or retaliation.
Exceptions to the At-Will Employment Rule
Some situations do not fit neatly into the at-will employment model. In these cases, certain rules may apply. The following are some common exceptions to the at-will employment rule:
Employment Contracts
An employee may sign a written employment agreement with his employer. It could help him determine his job duties, compensation, benefits and such.
Employers cannot force employees to quit their jobs after they have signed a contract for them.
Implied Contracts
An implied contract is a legally binding agreement that is formed out of conduct, relationships, assumptions, and common employment law practices.
This can be done through oral or written assurances regarding job security, or other suggestions that create an employment contract.
Even though it can be harder to prove than those in employment contracts, employees may sue employers for terminating a job when there was an implied contract in place.
Public Policy
The public policy exception is a widely accepted exception to the at-will employment doctrine, recognized in 43 of the 50 US states.
It protects employees from adverse employment actions that violate public interest. In this case, the employer must show that the termination was in the best interests of the company, not just the employee.
Good Fair and Faith Dealing
The good faith and fair dealing exception is a common defense to wrongful termination claims.
It allows employers to terminate employees for honest mistakes, even if the employee did not have malicious intent.
This defense is difficult to prove, but can be used in cases of wrongful termination where an employee was terminated for reasons other than their bad behavior or illegal activities.
The Upsides of At-Will Employment
The biggest upside of at-will employment is that it gives businesses the flexibility to change the terms of employment without advance notice.
This can be helpful in a rapidly changing economy, or when an employee no longer meets the company’s needs.
As long as the termination is done in a fair and honest manner, the employee should not be able to sue for wrongful termination.
The Downside of At-Will Employment
The lack of job protection that comes with at-will employment can be a downside. If an employee is terminated without cause, they may feel upset and angry.
This can lead to tension in the workplace, and decreased productivity. It can also lead to wrongful termination lawsuits if the employee feels that they were wrongfully fired.
Bottom Line
As long as an at-will employment policy is followed, businesses are free to terminate employees at any time, for any reason.
This can be helpful in a rapidly changing economy, or when an employee no longer meets the company’s needs.
However, the lack of job security that comes with at-will employment can be a downside.
Visit WorkDeputy to read more about your rights as an employee and other job-related information!
FAQs
What are the major alternatives to at will employment?
Employment contracts, implied contracts, and public policy are the major alternatives to at-will employment.
Is at-will employment legal in any country other than the US?
At-will employment is only legal in the US, except in the state of Montana. It requires employers to have good reason for dismissing an employee who has completed the probationary period. In other countries, labor laws are generally more pro-worker and indefinite employment is the norm.
How can I find out if my job is at-will?
If you didn;t get a written agreement, employee handbook, or policy stating, then it is likely that your job is at-will.
Can I be fired for refusing a job offer?
No, you cannot be fired for refusing a job offer. However, you may be able to negotiate a better job offer if you are offered an at-will position.
What are the consequences of being terminated without cause?
The consequences of being terminated without cause depend on the state and country in which you are employed. Generally, you may be entitled to unemployment benefits, damages for lost wages, and/or legal action.
