Addressing duration

Text for Written Translation

Choose your words carefully to avoid 'accidental contracts'

Most employees know that North Carolina is an employment at-will state. That means that an employer can terminate an employee at any time and for any reason except an illegal one. Illegal reasons include retaliation for whistle-blowing or filing a workers’ compensation claim, or firing someone for discriminatory reasons.

For at-will employees, the employer does not need “just cause” for termination.

At-will employees also have the right to quit at any time and for any reason. They aren’t required, for example, to provide their employers with notice

If there is an employment contract between the employer and the employee, then termination of the employee is restricted by common law or by the termination provisions of the contract. North Carolina courts have held that even if the contract does not discuss termination provisions, there is an implied provision that the employee can be terminated only for cause.

The accidental contract

Most employment contracts are written documents prepared with the assistance of an attorney. However, an employment contract can be oral, written, or partially oral and partially written. If an employer isn’t careful, it’s easy to unknowingly enter into an employment contract with an employee.

Basic contract law applies to the formation of employment contracts. The elements of a contract are offer, acceptance, consideration and mutuality of assent to the contract’s essential terms.

Addressing duration

In addition to those basic elements, an employment contract must also address the duration of employment and compensation. If a purported employment contract—either oral or written—does not have a definite duration, then it’s not a valid employment contract and the employee can be terminated at will.

Courts have reviewed many disputes concerning whether a purported employment contract had a definite duration. For example, North Carolina courts have held that a promise to hire an employee for “permanent employment” is not an expression of a definite duration. A promise to provide a bonus for satisfactory performance during a certain time frame does not create an employment contract for that certain time frame. Also, where the compensation is specified at a rate per year, per month or per week, this generally does not create employment for a specific period of time.

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Even a specific promise about maternity leave following the birth of a child does not negate an at-will employment relationship and create employment for a definite period of time.

The employee has the burden of proving that employment of specific duration was agreed to. In one case, an employee established a two-year employment contract where a letter stated that for the next two consecutive years, he would be paid $700 per month, plus 5% percent of vehicle sales, with a guarantee of $1,000 per month.

In determining whether a purported employment contract has a definite duration, the courts will look at any documents exchanged by the parties and any oral statements. Courts will also look at the parties’ intent, to determine whether it may be discerned from their documents, statements or conduct. Thus, the conduct of the parties after employment starts could be significant.

Дата добавления: 2015-11-16