Unless a contract specifies otherwise, employment is presumed to be at-will. A terminated employee can overcome the presumption that the employment was at-will by proving:

• There was an employment contract for a specific length of time. For more information, see Employment Contract Modifies At-Will Employment.
• An exception to the at-will rule, created by statute, the courts or public policy, applies.

This section discusses the limitations on the freedom to terminate at-will employees.

Your employee handbook should include a carefully drafted statement of your at-will employment policy. Repeat this statement wherever there is any possibility that other subject matter can be read as creating a more permanent employment relationship.

Examples of related policies include:

• Hiring
• Introductory period
• Introductory statement
• Discipline and termination
• Benefits
• Training

• CalChamber’s Employee Handbook Creator ® can help you easily create an employee handbook that contains this policy.

Language in employee handbooks and policy statements has been an issue in numerous cases about the nature of the employment relationship and if cause is required for employee termination. Case law indicates that you can create detrimental ambiguities in the employment at-will relationship by promising fairness or equity in termination decisions, or by setting forth discipline or termination policies or procedures that conflict with at-will employment. Explicit promises in a handbook can create contractual liabilities for you if you fail to follow your policies.

Conversely, appropriate language in a handbook can help protect and preserve the employment at-will relationship. Without an employee handbook, you create significant vulnerability to a variety of wrongful termination lawsuits.

The nature of the employment relationship is not based on the handbook language alone. Statements of at-will employment must be consistent in the employee handbook, employment applications, employment contracts and other materials. Collect and review all related materials while preparing the handbook to ensure consistency in preserving the at-will relationship.

1. Lab. Code sec. 2922