Reference no: EM131652779

Business Law : Explain what "employment at will" means and what exceptions apply.

The term “employment at will” means that an employee can be terminated at anytime without any notice or reason except an illegal one. This also means that the employee can leave at anytime for any reason. This type of agreement gives the employer the right to change terms of an employee's’ contract at anytime. Employment “at will” relationships are in all states except Montana where they have a “Good Cause Rule” protecting employees.

When an employee is terminated under an “at will” contract, their are exceptions and employee rights such as public policy, implied contracts and good faith & fair dealings.

Public Policy - This exception states that an employer cannot fire an employee if the action violates the state's public policy exception. The public policy exception is an action that is in the best interest of the public. For example, if an employee missed worked for jury duty, the employer would not be allowed to fire that employee.

Implied Contracts - This exception to the “ at-will” employment prohibits an employer from firing an employee after an Implied contract relationship has been established between both parties. The implied contract can be established through oral assurance or expectations created from a written assurance from the employer. The obligation of an Implied contract does not have to be documented legally.

Good Faith & Good Dealing - This exception has prohibited employers from firing an employee in bad faith or to avoid their duties. For example, the firing of an older employee to avoid paying for healthcare, the firing of an employee to avoid paying commission -based work.