What is an implied contract that limits the employers ability to terminate employment?
A. Most employees don’t have written contracts covering their employment. However, the Oregon courts have held that employers may be contractually bound to comply with termination procedures set forth in personnel policies or employee handbooks that the employer promises to follow or circulates to employees. If an employer’s personnel policies and procedures are made known to employees and if those documents promise that an employer won’t terminate employees except upon certain grounds (for example “just cause”) or except by following procedures (for example a verbal warning, a written warning, a suspension) then a termination may be a breach of contract if the employer doesn’t comply with it’s personnel policies or employee handbook. Many employers are aware that their personnel policies or employee handbooks may create contractual rights and include specific language (“disclaimers”) in these documents designed to inform employees that they remain employees “at will” who can be termin
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