At-Will Employment Key Terms

Some key terms on navigating at-will agreements

By J. Stoltzfus, writer/programmer LOCAL CITIZEN

An at-will employment agreement just means that an employer can let an employee go at any time, for any reason. But is it really that simple? In many cases, it's not. At-will agreements are subject to all kinds of legal processes as well as in-house documents with proprietary language about how hiring and firing gets done. Looking at some basic key terms around at-will employment will show business decision makers that it's not as easy as just decreeing an at-will policy in the workplace.

Employment contract

An employment contract is the basic document that governs a working relationship between an employer and those they hire. Individuals without an employment contract are said to be "at-will" workers, but in most cases, workers are entitled to a contract.
Try: See more on the employment contract at BizHelp.

Labor code and labor law

Labor law is any applicable federal, state or local regulation of labor policy. There are many examples of this at each level of government, so employers should research all applicable law when designing an at-will contract or proceeding with an at-will policy.
Try: See more on labor law at the U.S. Department of Labor website.

Termination policy

The termination policy is text written by company staff that identifies a formal procedure for terminating employees. An employer usually needs a termination policy for several reasons, including limiting liability, and proving that decisions are made on a fair basis.
Try: Get details and sample termination policies at Elinfonet.

Wrongful termination

Wrongful termination is the kind of litigation that at-will agreements are generally meant to deal with. Wrongful termination is a case of an employee trying to find illegality in the termination process. At-will agreements often come into play in a setting where judges or others try to find whether a wrong was committed.
Try: See more what can constitute wrongful termination at Employee Issues.

Collective bargaining

Collective bargaining is when a group of employees, either with union backing, or in a less formal way, approach an employer collectively to examine issues and find solutions in the workplace. When a company has a union in place, collective bargaining can come into play in figuring out an at-will agreement.
Try: See more on collective bargaining at WiseGeek.

Arbitration

Arbitration is a process in which a third party mediates a conflict. Businesses are relying a lot on arbitration these days for a number of contract issues, including at-will work arrangements. Arbitration can work, but at other times, criticism of possible partiality, as well as the potentially slow pace of the process, can cause problems.
Try: Get more on arbitration at this Free Advice site. See an example of an at-will policy governed by arbitration at this page from Infineon Raceway.