If an employer fails to abide by its own policies, it creates a breach of contract because the handbook itself is deemed as an implied contract. The burden rests on the terminated employee to prove that the breach of contract exists.
While the at-will concept was set in place so that an employer can terminate an employee at any time, as in downsizing of a mass of people, there are still limitations upon the employer's ability to do so without reason. For instance, an employer can not terminate an employee based on the conditions set forth by the many statutes which govern the rights of employees and fall under the umbrella of employment discrimination. Statutes such as Title VII of the Civil Rights Act of 1964 or the Age Discrimination in Employment Act of 1967, to name a few. In addition, due process protection requires that an employee have a fair procedural process before they are terminated for a liberty such as free speech or property interest.
As the world changes, employment law continues to change. Employers are finding new ways to deal with the employee issue by outsourcing or forming contract for hire relationships. In this type of relationship there is no ambiguity of an existing contract because at the beginning of the relationship all the terms are set forth in written form. If the parties are in agreement, the relationship is formed marked by their signatures on the document.
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