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At-Will Employment

Moneyzine Editor
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Moneyzine Editor
1 mins
September 25th, 2023
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Definition

When an individual is employed "at will," the employer is able to terminate employment at any point in time; without providing an explanation. In the same manner, the employee is free to stop working whenever they choose to do so.

Explanation

The concept of at-will employment has been around for over 100 years. At-will employment is based on a practice that allows either the employer or employee to terminate the relationship at any time. Interestingly, if the employee feels, and a court or arbitrator decide, that they were terminated for a specific reason, then the company may need to demonstrate "just cause."

Employers are prohibited from terminating an employee at-will in the following situations:

  • Employees involved in filing a Workers Compensation claim, attending jury duty or on military leave, or when an employee refuses to violate a law.

  • If managers and supervisors have a reason, or "cause," for terminating an employee, they should use that approach instead of relying on the "at-will" doctrine.

Finally, even when employed at-will, it is illegal to fire individuals under certain conditions. For example, individuals cannot be fired due to gender, religious beliefs, or age.

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