Employment Contracts

Abstract

While most employment relationships in the U.S. are "at will", others are governed by a contract between the employer and employee. Hiring employees is an important step while it is also a matter of grave importance to any business. Regardless of the size of business, employers must comply with a number of state and federal labor laws. In America, labor laws allow the employers to maintain either at will or contractual relationship with his/her employees. “At will” means that the employer and employee have a right to terminate their relationship at any time with or without reasonable grounds. “Contract Employment” is an agreement whereby a worker undertakes to work for an employer in return for a wage or salary. The purpose of this report is to describe the two type of employment relationships that can exist between employer and employee and reach a meaningful conclusion.

Employment Contracts

Introduction

While most employment relationships in the U.S. are "at will", others are governed by a contract between the employer and employee. In America, labor laws allow the employers to maintain either at will or contractual relationship with his/her employees. “At will” means that the employer and employee have a right to terminate their relationship at any time with or without reasonable grounds. “Contract Employment” is an agreement whereby a worker undertakes to work for an employer in return for a wage or salary. Both presents cons and pros to both parties involve in the agreement (Freedland, 2003). At will is more common since it gives freedom to both parties engaged in the contract to liberate themselves at any time from the obligations under the employment conditions. However, American doctrine of at will employment three exceptions under which no party can leave the employment at will (Muhl, 2001).

Discussion

Hiring employees is an important step while it is also a matter of grave importance to any business. Regardless of the size of business, employers must comply with a number of state and federal labor laws. In case of any violation, the employer may have to pay enormous penalties which automatically get levied upon him/her when he/she breaches the labor law in the course of regular business. Two areas which often results in labor disputes are related to nature of employment. We can categorize the employment on the basis of at will vs. contract.

“At will” means that the employer and employee have a right to terminate their relationship at any time with or without cause. It invalidates this if the pattern implies that a higher level protect employees. Avoid making statements (written or oral) regarding job security, anything involving a contract of employment or anything involving the employee can be terminated only for specific causes. This is an area of ??extensive litigation (Clyde, 2000).

California allows three exceptions to At Will: Public policy, engagement-contract and covenant of good faith and fair treatment. This means that if an employee is fired for the filing of a demand for workers union or for the refusal to do anything that violates the federal ...