Does At-Will Employment Mean an Employee Can be Fired for No Reason?No. While most employment contracts are at-will, in recent years courts have increasingly granted relief to employees who have been discharged without good cause. Employers should provide sufficient proof of "good cause" for termination.
What is Good Cause?In general, courts have considered the following to be adequate good cause for termination:- Employee's inadequate or improper conduct
- Changes in employer's economic and/or institutional goals
Failure to provide "good cause" for termination is considered a breach of contract. If a court determines that an employee was terminated without sufficient good cause, any of the following damages may be awarded: - Reinstatement
- Back-pay
- Restitution for Lost Benefits
- Lump Sum Severance
How Can an Employer Substantiate "Good Cause" for Termination?Establish an Employee ManualTo help clarify their intentions and protect against litigation, companies often create employee manuals which specify termination policies and procedures. Generally, an effective manual must identify the company's intent to create specific discharge procedures and justifications, identify the actual policies, and indicate employee acceptance through explicit or implicit agreement. In most situations, employers assume that continued employment is an indication of an employee's implied acceptance of the amended at-will terms. Outline a Termination Procedure
An employee manual should indicate the company's procedure for termination and specify when an employee's infraction will result in immediate suspension or termination. Companies often use a "progresive discipline" process which outlines a multi-step process of warnings and opportunities. Only upon the employee's failure to improve performance despite multiple warnings will the company resort to suspension or termination.
In most situations, by establishing and following a prescribed set of termination procedures, employers can provide some protection against wrongful termination claims.
Should You Hire an Attorney for At-Will Employment Issues?While it is not complicated to establish a basic employee manual, an experienced employment attorney could provide important guidance to ensure that policies and procedures sufficiently provide protection for both employees and employers. If you are an employer or employee facing a claim for wrongful termination, consult an employment attorney. |
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