Legal aspects of termination of employment

Legal issues involved in termination of employment are identified, and practical implications of these issues for employers and employees are discussed. There is no general protection against arbitrary dismissal from employment in the United States. Federal statutes restricting termination at will are listed; each state also may have laws protecting employees from arbitrary dismissal. Cases in which state courts have established exceptions to the termination-at-will general rule are described; these suits have been based upon breach of contract, tort, or "public policy" exceptions such as refusing to commit an unlawful act, performing a public obligation or upholding the law, and whistle-blowing. Considering the evolving limits on the termination-at-will general rule, practical advice for employers and employees regarding documentation of interviews, content of appointment letters, and recognition of employee rights is presented. While the termination-at-will general rule appears to be eroding, there does not seem to be a clear trend against which to draw any general conclusions. The cases indicate that courts will find some theory to redress outrageous conduct or clear violations of an employer's policies.