Implied Employment Contract

An implied employment contract is essentially an informal employment contract. It does not have to be placed in written word. However, some companies provide the details of their implied employment contract in an employee handbook. In those cases, any employee termination must occur within the bounds of what is stated in the handbook. A company's neglect to that will result in a wrongful termination through breach of contract. Thirteen states do not recognize implied employment contracts as an exception to 'at will' employment. Those states are, Delaware, Florida, Georgia, Indiana, Louisiana, Massachusetts, Missouri, Montana, North Carolina, Pennsylvania, Rhode Island, Texas, and Virginia.

Fast Facts

  • An employee handbook may simply state that employment is handled on an 'at will' basis.
  • Implied contracts made on a verbal basis are left to the employee to interpret and represent.

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