The Implied-Contract Exception to the Employment-At-Will Doctrine
From the Desk of Jim Eccleston at Eccleston Law LLC:
In a previous post, we discussed the three major exceptions to the employment-at-will doctrine. This post will examine the implied-contract exception of the doctrine.
The second major exception to the employment-at-will doctrine occurs when an implied contract is formed between an employer and employee. Although at-will employment typically does not involve a contract, certain oral or written assurances to employees regarding job security or procedures can create an implied-contract.
A typical example of a written assurance which creates an implied-contract is a representation made in an employee handbook. For instance, a written assurance in an employee handbook which states that employees will be disciplined or terminated only for “just cause,” can create an implied-contract.
Furthermore, an employer can orally make representations to an employee and create an implied-contract. For instance, an employer’s stating to an employee that employment will continue as long as the employee’s performance is adequate, is a representation that courts have ruled to constitute an implied-contract requiring termination for “just cause.”
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