SPHR Human Resources

Category - Relations

After three months on the job, an employee is fired without cause. This situation is an example of:
  1. The disregard of reference checking by the employer
  2. Defamation
  3. The violation of an implied contract
  4. The common law concept of employment-at-will
Explanation
Answer - D - Employment-at-will is a common-law principle stating that employers have the right to hire, fire, demote, and promote whomever they choose for any reason unless there is a law or contract to the contrary. In addition, employees have the right to quit a job at any time.

Key Takeaway: Employment-at-will may be challenged in court for two following exceptions: public policy exception, and just cause exception. Public policy exception states that employees cannot be fired for fulfilling legal obligations or for performing actions considered to be socially useful. Just cause exception says that employees who have long-term service with the employer and indicia of job security can be terminated only for good or just cause.
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