Where there is no written contract, the courts in most states are willing to find an "implied" contract arising out of the terms set forth in an employment application, employee handbook, employer policies and procedures manual, verbal representations by management and/or regular personnel practices. Whether there is an "implied" contract depends upon the particular facts of any given employment relationship.

An employer that wants to minimize the risk of such an "implied" contract should obtain a written and signed acknowledgment from employees that nothing in the application, policy manual, handbooks, etc., constitutes a contract of employment, that the employee is an "at will" employee and may be terminated at any time for any reason or for no reason at all, with or without advance notice.

Click for a useful article on employee policies.

(Reviewed 8-09)