The Employment-at-will
doctrine is a common-law rule that generally states that in the absence
of any contractual agreement guaranteeing employment, an employer inthe
private sector has the right to terminate any employee at any time and
for any or no reason.
At the same time, employees have the right to quit at any time or for
any or no reason, even without giving notice. While the doctrine seems
to imply a labor market free for all, there are limitations to the application
of employment-at-will that should temper its use.
Legal challenges to employment-at-will have weakened concept of “at-will”
to exclude unjust terminations or wrongful discharge. The three most
important employment-at-will exceptions include the violation of public
policy (or activities that are protected by law), workers protected
by implied contracts and those that were treated in bad faith (lack
of good faith and fair dealing, also know as implied covenant).
However, states differ as to which, if any, of the three exceptions
are recognized. In addition, most termination and disciplinary policies
must comply with federal legislation, such as title VII of the Civil
Rights Act of 1964 and the Americans with Disabilities Act.
Employees, Employers are on Equal Footing
Ther is no doubt that in the absence of a union contract, or other binding
agreement of employment, the employment-at-will doctrine provides employers
and employees alike free will in the labor market. The ability to terminate
at will, as the doctrine is sometimes referred, is a legal right of
the employer, but one that can lead to a slippery slope of other labor
managment problems. I once heard an employer brag to his employees that
he could fire them “anytime I want.”
Now, nothing builds teamwork and motivated employees like that type
of statement. The employment-at-will concept is based on the assumption
that employers and employees are on equal footing in terms of bargaining
power. We know that this isn’t always the case, as the supply
and demand for labor changes the dynamics of the marketplace. When workers
are in short supply, they possess greater power to negotiate higher
compensation. They can exercise their employment-at-will rights to seek
greener pastures. Remember, as it relates to employment at will, what’s
good for the goose is good for the gander.
Beware of Control by Fear
Employers seeking to use employment at will as the sole foundation of
their employee managment strategy run the risk of violating the basic
rights of their employees and, hence, open the door for wrongful discharge
suits. At the very least, this type of foundation implies a relationship
built on the employer’s power to unilaterally discharge employees
rather than one of symbiosis. One is control by fear and the other control
through mutual benefit.
Therfore, the emloyment-at-will doctrine as a tool to keep employees
in line, but as a management tool, part of an overall labor managment
strategy. View employment at will as an attitude that suggests that
both parties need to benefit from the employment relationship; or the
employment relationship has no real reason to exist. In this light,
employers must continue to meet the needs of valuable workers, and workers
must maintain a positive level of job performance.
The guidance mechanism for this new relationship then becomes the company’s
hiring and orientation practices, company policies, easy to understand
performance standards, performance evaluation process, and disciplinary
and dismissal procedures. In other words, employees are guided by effective
managment practices.
Base Labor Relations on Good Management, Trust
Employment at will is a complex legal issue that depends on laws and
rulings that change with time and vary from state to sate. While employment
in the United States has been “At-Will,” good labor relations
are based more on good management, trust and fair treatment.
Yes, employers and employees have the right to part company, but “At
Will” does not equate to “No Risk” for either side.
Relations ships built over time carry over into the market place in
general, and companies that manage fairly and effectively gain an advantage
over others that do not. Employers that recruit, train and evaluate-
and discipline and terminate only when needed and with reason- are always
better off in the end.
