In: Operations Management
Employment at will is the contractual agreement which states that an employer can employ or remove a person at his own discretion. Employment at will was used historically by many employers to hire and fire as they want and no employee could take any legal action against it. Employment at will has been used by many employers to dissuade striking workers or those who don't the line. The exceptions to this are
1)Public policy- An employer cannot discharge an employee of its duty for following the public or state laws. For eg. If an employee refuses to do a job which breaks the state law, the employer cannot fire him.
2)Implied contracts- Implied contracts are valid in many states. These state that the employer must comply with certain assurances before removing a person from his position. This is done to give the employee a chance to state and plead his case according to general practices.
3)Covenant of good faith and exception- Covenant of good faith and exceptions brings into account the question of just cause and removal of personnel in bad faith due to personal reasons are wrong.It brings a question of ethics and moral behaviour into question.
This arrangement usually favours the employer since he is the decision maker and no action can be taken except in exceptions.