Employment At Will Policy

In most instances, the employment contract will not state its expiration date. In such a case, the contract may be terminated at any time by either party. Ordinarily a contract of employment may be terminated in the same manner as any other contract. If it is to run for a definite period of time, the employer cannot terminate the contract at an earlier date without justification. If the employment contract does not have a definite duration, it is terminable at will. This is called employment at will. Under the employment at will doctrine, the employer has historically been allowed to terminate the contract at any time for any reason or for no reason.

Courts may sometimes construe an employer's statements concerning continued employment as a part of the employment contract, and therefore require good cause for the discharge of an at-will employee. Also, written personnel policies used as guide¬lines for the employer's supervisors have been interpreted as restricting the employer's right to discharge at-will employees without just cause. Employee handbooks or personnel manuals have been construed as part of the employee's contract. This is why all personnel manuals and employee handbooks should contain a dis¬claimer. A sample disclaimer would be: This employee handbook is not intended to create any contractual rights in favor of you or the company. The company reserves the right to change the terms of this employee handbook at any time.

Most states recognize two public policy exceptions to the employee-at-will doctrine:
" One is the whistle-blower defense that protects employees against discharge for reporting illegal conduct or conduct that violates public policy;
" Another protects employees who refuse to participate in illegal conduct.