Business Law and Employment Law – Employment At-Will Presumption in Pennsylvania
Courts in Pennsylvania have repeatedly upheld that in employment relationships there is a presumption of at-will employment. This means that an employee can be terminated at any time at the whim of the employer and that there is no definite term of employment. However, the employment law does prohibit employers from unlawful discrimination, such as, terminating employees on the basis of their race, ethnicity, religion, disability and sex. The presumption of at-will employment allows for employers to hire employees without a definite term of employment or any guarantee that employment will continue. This means, when you are hired in Pennsylvania the employer can terminate after a day, a week, a year, etc.
In the January, 2012 opinion in Edwards v. Geisinger Clinic, the United States Court of Appeals for the Third Circuit revisited Pennsylvania’s presumption of at-will employment. The Court held that the presumption of at-will employment allowed the employment relationship “to be terminated at any time by either party for any reason or no reason.” The plaintiff was a physician who needed a period of continuous employment over four (4) years to become board certified. During his interview process the physician specifically discussed this four (4) year requirement with his employer. The employer even sent an offer letter to the physician outlining that in order for continued employment with the employer he was required to become board certified within four (4) to six (6) years of his date of hire. Upon commencing work, the physician entered into an employment contract with the employer which had a provision specifically stating the physician was an at-will employee of the employer.
The physician was terminated less than a year after he was hired. The physician then brought a breach of contract claim against his employer arguing that based on the interview process and offer letter the he had a contractual term of employment for a minimum of four (4) years. The Court held that this was not enough to override Pennsylvania’s strong presumption of at-will employment. At most, the statements made during the interview process and in the offer letter merely evincing an employer’s hope or expectations that the employment continues for a definite term are inadequate to overcome the at-will employment presumption. To overcome the presumption of at-will employment there must be “clear and precise evidence that the parties intended to enter an employment contract for a definite term.”
Additionally, the fact that an employee did not read an employment contract containing an at-will provision does not alter the employment relationship because the presumption is in favor of at-will employment and ignorance or failure to read a contract does not negate the obligations created by the contract. Furthermore, handbooks and employer policies which states termination will not occur for certain reasons or unless there is just cause does not destroy the at-will presumption. A handbook or employer policy must contain express language that the employer meant to destroy the at-will presumption.
It is always important for employment contracts to contain express and clear provisions when drafted. Employers should always include either an at-will employment provision or a definite term of employment to employment contracts so there is clear and express evidence of their intent. Otherwise, unnecessary and costly litigation may arise based on misunderstandings between expectations and actual contractual obligations in the employment setting.
For further questions and concerns on this matter, seek advice from Philadelphia Employment Law Attorneys for best help you can get. You can contact the Law Firm of Pozzuolo Rodden, P.C. today!