ABSTRACT

This chapter describes the legal doctrine of employment at will. It identifies major US legal restrictions on terminations. There is a good deal of law to be considered when the issue of terminating an employee arises. Termination for cause is not the same as termination for unsatisfactory performance. Let us first consider termination for unsatisfactory performance. In some ways, this is the reverse of compensation increases based on performance. Progressive discipline means that an employee is informed, clearly and formally, about their unsatisfactory performance, what it is that makes it unsatisfactory, and what they must do by a certain date to reach a level of performance that will be satisfactory. One category of termination for performance that we have not discussed but that presents particularly difficult problems is the long-term employee whose performance deteriorates due to issues outside of work. There is one further consideration before we leave the topic of termination for performance.