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No Job Is Secure To Workers

by Geoffrey Glaser

The truth may surprise you!

No law gives you an automatic right to keep your job. In fact, it is just the opposite. Most of the legal principles and practices of the workplace are indisputably on the side of the employer who fires you.

Accordingly, you can be fired for many reasons, most of which you certainly understand, including poor performance, poor attendance, violating laws or company rules, drugs and refusing to obey orders.

And, as is all too common today, you can be laid off for many reasons, none of which have anything to do with you, such as economic or business conditions, or lack of work.

But, you also can be terminated for no reason at all!

The prevailing doctrine defining the employer/employee relationship is called "Employment-At-Will."

In simple language, it means continued employment is at the will of either party. The employee can quit his job at anytime for any reason and the employer cannot stop it. There is no indentured servitude. Conversely, the employer can fire an employee at any time for any good reason, bad reason or no reason at all. This legal precept is based on ancient English common-law, the foundation of our legal system.

It started with the property rights of the business owner to run his business any way he wanted. In the United States, this concept was made very clear by the Supreme Court in 1894 when it ruled an employer does not have to have a reason to fire an employee.

In modern days, this absolute right has been eroded.

Congressional legislation has limited employers' rights to fire at-will, primarily through discrimination laws and protective labor laws. Also, collective bargaining agreements have historically required employers to have "good cause" to fire an employee. These agreements usually have appeal procedures and also provisions for a third party to review the facts and render a final and binding decision.

In more recent years, the at-will standard has been further modified by court decisions recognizing a relatively new cause of action, called "wrongful termination."

This has evolved to protect workers from unjust acts of employers that violate a public policy or one of the basic legal tenants, such as contract law. Under the guise of public policy, courts have created exceptions to Employment-At-Will for employees in many situations, including whistle blowing (which is where an employee reports the employer's violation of a law), when an employee files a claim against the company under a legal provision, such as Workers' Compensation, or when an employee refuses to obey an order to commit an unlawful act.

Also, the courts have carved out an exception based on contract law. The employer may have created an employment contract with the employee, either expressed or implied, that limits the ability to terminate the person. This is clear if the employer stated in writing the specific term of employment, i.e. five years.

When it is not that clear, it can be implied from statements made orally in the interview, written in an offer letter, or possibly published in the Employee Handbook. The courts will look for statements such as "you will have a job here for as long as you do good work," or you will be fired only for "good and sufficient reason."

Due to this case law, employers today have Employment-At-Will language on their employment applications, in their Employee Handbooks, in benefit booklets and in many other documents. Their purpose is clear: To make sure their employees understand, or at least to enable the employer to claim their employees understand, the legal basis to the employment relationship at their company.

Based on Employment-At-Will concepts, it is also true that employers do not have to provide you with progressive warnings before firing. Furthermore, severance pay is also not required upon discharge. However, expressed or implied agreements to do so create an enforceable legal right for you.

In conclusion, we all want and deserve to be treated fairly. However, the definition of fair is different, depending on if you are the firing business owner or the fired employee.

Basically, the employer holds most of the rights in this regard. Thus, it becomes the employee's challenge to develop a position that effectively eliminates the employer's rights.

This is not always easy. But, of course this was not really a surprise to you, was it?

Geoffrey Glaser is an HR attorney and generalist with 25 years of experience and is a Human Resource Store associate. You can access him through our legal hotline, which is included in our package of Outsourced Human Resource Services, by calling us at 708-645-2530 24 hours daily.


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Last updated 06/18/07