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The employment relationship — HFD

At-will employment

The employee-employer relationship is contractual in nature and is the product of an agreement or series of agreements, including the nature of work, the duration of employment, and the conditions of employment. The most common type of employment relationship is employment “at-will.” An at-will employment relationship:

  • is one for an indefinite term
  • may be terminated by either party at any time.

Except where modified by law or contract, an employer may dismiss an employee at-will for good cause, no cause, or even for morally wrong cause without being guilty of a legal wrong. At least one state, Montana, does not recognize at-will employment. 

Contractual limitations

The at-will contract will be modified by express written agreements between the employer and employee. One form of contractual limitation may be an employee handbook. The courts of some states have held that certain provisions of employee handbooks, such as disciplinary proceedings and statements of company benefits, are binding on employers as part of the enforceable contract. However, if the employer properly and conspicuously states in its applications or handbook that the employment relationship is “at-will,” such language will...


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