AT-WILL EMPLOYMENT PRINCIPLES
When an employee is at-will (which is the case in California), in most circumstances the employer can terminate the contract whenever it wants to. However, under certain circumstances, employees are protected from arbitrary terminations. Examples of such situations include where the employer:
Termination in Violation of Public Policy — A termination in violation of public policy occurs when an employer takes actions that are harmful to the public or the good of the public. The policy must affect a fundamental public interest and be grounded in a statute. Some examples include:
Termination in Breach of an Employment Contract – Employment contracts can be written, oral, or implied by the circumstances. Such contracts may create an exception to the general rule that an employee can be terminated at will. Examples of such contracts are those that guarantee employment for a pre-set period (one-year, two years, etc.), or that require the employer to take certain steps or disciplinary measures prior to termination.
Termination in Breach of the Covenant of Good Faith and Fair Dealing – All employment contracts contain an implied covenant of good faith and fair dealing which provides that neither the employer nor the employee may engage in conduct that denies the other benefit of the contract. For example, if an employer offers a job to an employee who moves from one state to another to take that job, but then fails to let the employee work or receive the full benefits of that job, there may be a breach of the covenant of good faith and fair dealing.