Law, Ethics And Corporate Governance

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Law, Ethics and Corporate Governance

Law, Ethics and Corporate Governance


When the organization doesnot develop any kind of formal contract, then the employee hired is considered to be working at will. American organizations in various States hire employees at their will and this concept has become important for both the employees and the employers to understand properly in order to get an idea about the rights of the workers and the management conditions that they need to give productivity. Unless there is collective bargaining agreement or any contract, the employee works at will. This gives rise to an important concept according to which the employer is allowed to terminate the employee without any good reason or cause. The following paper discusses the doctrine of employment at will policies executed in several organizations.


Difference between a contract and a labor agreement at will

Work contract

A labor contract establishes the terms and conditions of employment. It may be in writing or may be an implied contract, although written contracts are understandably easier to apply. It is hard to say when there is an implied contract, and labor lawyers recommend that their clients avoid making statements such as: "Do not worry; you'll always have a job with the company." These statements are understood as implicit contracts when the employer's intent was simply to give the employee a reassurance about job security, not promising a permanent job (Shoemaker, 2013).

Employment at will

The doctrine of employment at will is not a law. It is standard practice, widely recognized among private sector employers. Anyway, employment at will is not an agreement. The only way to employment at will that remotely looks like a deal is that the employee acknowledges your agreement to be used at will. He is essentially accepting the fact that their employment may be terminated at any time and can be cut by the employer or the employee, without notice or reason.


The formal employment contracts are written, and affect employee issues such as scope of work, remuneration, allowances, benefits and conditions for termination. The two parties to a contract of employment-usually a company officer or director of human resources and employee-signed written agreement after negotiating the terms and conditions. Employment contracts for senior executives can involve lengthy negotiations with lawyers representing the employer and the employee (Muhi, 2001).


The difference between a contract and an agreement will employment is that one is negotiated and the other not. The contract of an employee to employment at will is a proposal to take it or leave it. Many employment applications and online application processes require or electronic signature of the applicant stating that employment with the company is at will and may be terminated at any time with or without cause or notice by the employer or the employee.


Overall, the most significant difference between the two is termination. Termination under any of them can be initiated by the employer or the employee. However, an employment contract can usually only end up with a written notice to the other party within a ...