Avoid Creating an Implied Employment Contract

Key Points

  • If an at-will employment relationship exists, not only can the employer terminate the employee at any time, for any reason, so long as it is not in violation of any employment laws, but the employee is also free to leave the employer at any time for any reason or no reason. However, an employer must be careful not to create an implied contract with an employee it considers at-will.
  • In order to avoid creating an implied employment contract, an employer must clearly and unambiguously inform the employee of the at-will employment relationship in the written job offer and include specific language explaining that the offer letter is not an employment contract.
  • The employer should also avoid making any statements to the employee, either when verbally communicating the employment offer or during the employment, that the individual has job security or that the individual will be compensated for a specific period of time.

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