Most people think of employment as a contract: An employer hires an employee for a specific job, and the parties agree on certain terms and conditions. However, experts like Christopher Linton in Houston, TX, know that in the United States, employment is actually called “at will.” That means employers and employees can terminate the relationship at any time, for any reason or no reason at all. While this may seem like a bad deal for employees, there are some benefits to at-will employment that both sides should be aware of.
The History of At-Will Employment
In the early days of America, there were far fewer laws governing the workplace. Employers could do whatever they wanted to their employees. This included firing them for any reason or no reason at all. However, as the country grew and more people moved into cities to work in factories, this began to change. Workers started organizing into unions to demand better treatment and fairer wages, and laws were enacted to protect their rights.
Christopher Linton says one of the most critical laws was the National Labor Relations Act of 1935. This law gave workers the right to form unions and bargain collectively for better wages and working conditions. It also ended at-will employment, requiring employers to have cause for firing an employee.
However, over time, courts began chipping away at these protections. Courts ruled that employees could be fired for “good cause,” which was defined very narrowly. In the 1980s, a series of Supreme Court decisions restored at-will employment in the United States. It essentially gave employers back the same power they had before the National Labor Relations Act was passed.
The Benefits of At-Will Employment
At-will employment may not seem like it is fair to employees. However, there are some benefits that both sides should be aware of.
For employers, at-will employment allows them to hire and fire employees as they see fit. They do not have to worry about violating someone’s contract if they need to downsize or let someone go for poor performance.
Christopher Linton says at-will employment also protects employers from lawsuits. If an employee is fired, he/she cannot sue the company for breach of contract, unless there is evidence of discrimination or some other illegal reason for the termination.
For employees, at-will employment can be suitable if they need to leave jobs for any reason. They do not have to worry about giving notice or violating their contracts. In addition, if they are unhappy with their jobs, they can quit without worrying about being sued by their employers.
At-will employment also allows employees to negotiate their terms and conditions of work. Employees who are unhappy with their salary or benefits can try to negotiate a better deal with their employer. Moreover, if an employer wants to change the terms of employment, the employer can do so without having to get the employee’s agreement.
Risks of At-Will Employment
Of course, there is also some downside to at-will employment. Employees can be fired anytime, for any reason or no reason. In addition, if they are fired, they may have hard times finding other jobs. This is because potential employers will know they were let go.
At-will employment can also make it difficult for employees to take legal action if they feel like they are victims of wrongful termination. Unless there is evidence of discrimination or some other illegal reasons for the termination, it is hard for employees to prove that their firings were unjustified.
The bottom line is that at-will employment is a system that has both benefits and drawbacks for both employers and employees. It is essential to understand the risks and benefits before making any decisions about whether or not to work under an at-will arrangement.
Other Types of Employment Contracts
It is important to note that at-will employment is not the only type of employment contract. There are also “fixed-term” or “for cause” contracts, which protect employees from being fired without cause.
Fixed-term contracts are typically used for positions that are temporary or seasonal. They usually last for a set period, such as six months or one year. Moreover, they specify the duties and responsibilities of the employees during that time. The employees can either be renewed or let go at the end of the contracts.
For-cause contracts are similar to fixed-term contracts, but they specify why employees can be fired. For example, a for-cause contract might stipulate that an employee can only be fired for failing to perform his/her duties, violating company policy, or engaging in illegal activity.
It is also worth noting that there are some exceptions to at-will employment. Some states have laws that protect employees from being fired for specific reasons, such as pregnancy, race, or religion. Moreover, federal laws like the National Labor Relations Act and the Fair Labor Standards Act also provide some protections for employees.
Christopher Linton says that if you are unsure what kind of contract you have, then it is always best to consult an attorney before making any assumptions.
Final Thoughts
At-will employment is the most common type of employment contract in the United States. It is a system that has benefits and drawbacks for employers and employees. If you are considering working under an at-will arrangement, it is essential to understand the risks and benefits before making any decisions. In addition, if you are unsure what kind of contract you have, it is always best to consult an attorney before making any assumptions.
