Chapter 1
THE EMPLOYMENT-AT-WILL DOCTRINE
Summary
· Since 1888, Texas has recognized the employment-at-will doctrine. Under this doctrine, an employee hired for an indefinite and undefined period can be terminated at any time, with or without cause.
· In addition to statutory-legislative exceptions, the employment-at-will doctrine is subject to an exception, and a cause of action exists, where an employee is discharged for refusing to perform an illegal act ordered by the employer.
· To avoid the employment-at-will doctrine, there must generally be a written contract between the employer and the employee. The requirement of a written contract is based upon the statute of frauds. However, in some instances oral agreements have been found sufficient to void an employment-at-will relationship.
· Disclaimers should be used to avoid arguments that employee handbooks or other documents modify or alter the at-will relationship. In addition, employee handbooks should not contain any express agreements or assurances.
In addition to a long list of federal and state statutes which, under various circumstances, provide a cause of action for wrongful discharge, with increasing frequency employers are being forced to defend against common law tort claims arising from the termination of an employee or, more accurately, the manner in which the termination was carried out.