At-Will Employment Agreement Form

At-will employment is a working arrangement that can be terminated by either the employer or employee at any time and without cause and with no notice.

However, an at-will employee cannot be let go for any reason such as disability, sexual or racial discrimination. In addition, the firing cannot be in a retaliatory nature or in violation of public policy. 

This type of working relationship decreases the liability of both parties in the event that employment is terminated by either the employer or employee.

There are various exceptions to the reasons why an employer can end employment in an at-will employment relationship. In this section, we will explore both the federal and state exceptions you should consider when terminating this type of employee.

Federal Exceptions

Federal law prohibits employers from ending at-will employment for the following reasons: 

• Discrimination: based on race, gender, religion, age, or national origin 

• Alien status: based on the immigration status of the employee (assuming they are legally allowed to work within the United States)

• OSHA requirements: workplace or other hazards reported to OSHA

• Polygraph testing: employees cannot be required to take part in a lie detector test 

State Exceptions

There are various types of state exceptions that may stop employers from ending at-will employment relationships. The most common of these are as follows: 

• Implied contract exceptions: if there is an implied contract between an employer and employee, even if there is no written document, then the employee cannot be fired. This implication typically arises from oral suggestions or employee handbooks describing termination policies. 

• Good faith exceptions: employers cannot fire employees at-will when the termination is driven by malintent or bad faith. This is also known as the good faith and fair dealings covenant. 

Public policy exceptions: certain states have public policy exceptions to at-will employment, forbidding employers from firing at-will employees for reasons that involve the employee’s compliance with state policy (such as exercising their legal rights)

An at-will employment contract should include various terms for it to be valid. These are as follows: 

• Name of the employer

• Name of the employee 

• Employee’s address, I.D number, and contact details

• Date of employment 

• Duration of employment

• Work scope

• Compensation and perks

• Notice of termination 

• Potential modifications 

• Performance specifications 

• Confidentiality or non-disclosure

Writing an at-will employment contract involves numerous different steps. It’s important to properly follow this process to ensure that the document is legally valid and will not leave you open to legal issues. 

Follow these steps to write an at-will employment agreement: 

• Find an at-will employment agreement template

• Introduce the employer and employee in an initial statement

• Add the terms of employment 

• Include extra factors applying to the working agreement 

• Define how intellectual property should be handled

• Document the main rules governing the working arrangement 

• Insert space for the details and signatures of both employee and employer

Before writing your own at-will employment agreement, it’s helpful to look over an example of this type of form. This will familiarize you with how the document should look when completed and what it needs to include.

If you’re looking to create an at-will employment agreement, there are other related documents that may serve more of your legal needs:

• Resignation Letter

• Immediate Resignation Letter

• Non-disclosure Agreement 

• Independent Contractor Agreement

• Employment Contract