Under an At-Will employment agreement, the employer has the right to terminate the employee and the employee has the right to quit without notice. This employment type is in most of the U.S. states. In almost 100 percent of the time, the Human Resources department will have the employee agree and sign an At-Will Employment Agreement. This can be very important to ensure there are no lawsuits for wrongful termination brought about by the ex-employee.
What Does At-Will Employment Entail?
However, an At-Will employment agreement does not give the right for the company to terminate the employee based on discriminatory reasons, such as sex, age, race, religion, or any other federal prohibitions. Also, workers in a union are exempt from this type of employment. If a HR manager hires a union worker, there has to be documented just case for him or her to be fired, for instance poor safety issues, low productivity, poor work quality, and refusing to work on assigned jobs.
In recent years, many companies have terminated their At-Will employment in favor of a just case employment for all employees. This is due to past lawsuits and the introduction of HR software, which makes it more efficient to keep track of employee records. In the past, At-Will employment was easier than dealing with tedious staff records and making sure all warning and issues were properly noted.
The HR department has to be sure that all At-Will employees have agreed to and sign an acknowledgement/disclosure stating as such. If not, it can cause a company of any size to lose a lot of revenue on court and possibly settlement costs. When the HR manager is creating the new employee paperwork, he or she must make sure the agreement is included for each new hire. Otherwise, in this litigious world, the company will be left open to possible lawsuits.