Termination of the Employment Relationship

Question 1

At-Will Employment

Answer 1

Either ER or EE free at any time, WITHOUT NOTICE OR CAUSE, to terminate relationship

Question 2

Employment Contract for an Indefinite Term

Answer 2

Presumed to be AT-WILL

Question 3

Employment Contract for Specific Term

Answer 3

Presumed to be FOR CAUSE

Question 4

For Cause Employment

Answer 4

EE can only be terminated (or leave) during the term of the contract for cause

Question 5

Termination for Cause

Answer 5

Requires a material breach of the employment relationship that undermines the other side’s ability to perform

Question 6

Employee Handbooks

Answer 6

Absent clear and prominent disclaimer, EE handbook may constitute a unilateral k and bind ER if:

(1) Language contains A PROMISE CLEAR ENOUGH THAT EE WOULD REASONABLY BELIEVE OFFER HAD BEEN MADE;
(2) Disseminated to EE in such a manner that EE is aware of its contents and REASONABLY BELIEVES IT TO BE AN OFFER; and
(3) EE accepts offer by COMMENCING/CONTINUING WORK after learning terms of EE handbook

Question 7

Promissory Estoppel

Answer 7

Even if ER’s representations do not give rise to an enforceable contract, the ER can be held liable for a promise it makes if:

(1) ER should reasonably expect it to induce reliance on the part of EE;
(2) It does in fact induce such reliance; and
(3) Injustice can be avoided only by enforcing the promise

IN: Only available for at-will EEs

Question 8

Implied Covenant of Good Faith and Fair Dealing

Answer 8

The parties cannot treat each other in a way that would “frustrate the contract” or “rob the other party of the benefit of their bargain”

Imposed in for cause employment, not at-will

Question 9

Wrongful-Discharge Tort

Answer 9

EE must show that they were discharged in retaliation for:

(1) Exercising a statutorily conferred personal right; or
(2) Fulfilling a statutorily imposed duty

Can also be used when EE was constructively discharged

Question 10

Illegal Acts

Answer 10

EE cannot be discharged for refusing to commit an illegal act