Terms of Employment

Question 1

What is the general rule of presumption about employment in Indiana?

Answer 1

Employment is presumed to be “at will”

Question 2

What is “at will” employment?

Answer 2

An employee or employer may terminate the employment relationship at any time for any reason that is not prohibited by law

Question 3

What are the exceptions to “at will” employment?

Answer 3

1. Employment contract provisions
2. Exceptions based on public policy
3. Limited Doctrine of Promissory Estoppel

Question 4

What is the employment contract exception?

Answer 4

If the parties include a “clear provision” in an employment contract covering the length of employment, the presumption of “at-will” employment is overcome.

Question 5

What are the exceptions to at will employment based on Public Policy?

Answer 5

1. If the discharge circumvents a right granted by statute (e.g., firing an employee for filing a workers’ comp claim) OR;
2. The employee is fired for refusing to commit a crime or to perform an act that violates safety regulations

Question 6

What is the Limited Doctrine of Promissory Estoppel?

Answer 6

In employment agmts covered by the SOF, an employee may use promissory estoppel to prove an oral promise that the employment is not at will if the employe can show (5) things:

1. a promise made by the employer
2. with the expectation the employee will rely on it
3. and that induces reasonable reliance by the employee
4. the promise is of a definite an substantial nature; AND
5. injustice an be avoided only by enforcing the promise.