PHR Human Resources

Category - PHR

What is the term for the notion that employers may dismiss employees for no cause, good cause, or even for morally wrong or ambiguous reasons without breaking the law?
  1. Employment at-will
  2. Contingent workforce
  3. Yellow-dog contract
  4. Constructive dismissal
Explanation
Answer: A - Employment at-will is the notion that employers may dismiss employees for no cause, good cause, or even for morally wrong or ambiguous reasons without breaking the law.

Key Takeaway: At-will employment is a lawful employment relationship in which it is stated that either employer or employee can break their relationship at any time with absolutely no liability, as long as there was never a definite term in the contract regarding the length of the employment relationship or there is no union involved. Under at-will employment, the employer is free to discharge employees for any reason at all-including for no reason. Similarly, the employee is free to strike, quit, or stop working at any time. There are several exceptions to at-will employment, especially if unlawful discrimination is involved.
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