Also known as: at-will · employment at will · at-will employment
Written by attorneys — see sources below.
A legal relationship or interest that either party may terminate at any time without cause and without a fixed duration.
Brook Connect allows Bright Satellite to place equipment on its rooftop under an oral understanding that either party may end the arrangement if it proves unsatisfactory. Bright Satellite takes possession but no term is fixed. When Brook Connect later demands removal, the arrangement ends immediately because the interest is terminable at the will of either party.
Harbor Freight Lines orally agrees with the Bayport Port Authority to use a dock for ten years but the writing requirement is not met. Harbor Freight takes possession. The arrangement creates a tenancy at will because the lease is invalid under the statute of frauds and possession alone produces only an interest terminable at either party's discretion.
Astra Aerospace attempts to grant Atlas Ventures an access easement across its land but the conveyance lacks the required writing. Atlas Ventures begins using the path anyway. The benefit of the intended servitude is terminable at will by Astra Aerospace because the statute of frauds was not satisfied.
Alpine Mining adopts a corporate seal under its articles. The board later decides the design is outdated and replaces it with a new emblem. The change is valid because the corporation possesses power to alter its seal at will.
Interactive Data Corp. hires an employee without a fixed term or for-cause provision. After the employee reports suspected illegal activity the company terminates the relationship. The discharge is lawful because the employment is terminable at the employer's will.
Interactive Data Corporation hired John Foley in June 1976 as an assistant product manager at a starting salary of $18,500. As a condition of employment Foley signed a confidential and proprietary information agreement. The company's president told Foley that if he performed his job well he would have a long and rewarding employment with the firm. Over the next six years and nine months Foley received steady salary increases, promotions, bonuses, awards, and superior performance evaluations, rising to branch manager of the Los Angeles office with an annual salary of $56,164 plus a merit bonus. In January 1983 Foley learned that his new supervisor, Robert Kuhne, was under investigation by the FBI for embezzlement from his former employer, Bank of America. Foley reported the information to Vice President Richard Earnest because he was worried about working for Kuhne in a supervisory position. Earnest told Foley not to discuss rumors and to forget what he had heard. In early March 1983 Kuhne informed Foley that the company had decided to replace him for performance reasons and offered a transfer to another division. Foley was later told he could continue as branch manager if he agreed to a performance plan, but when Kuhne met with him the next day Kuhne instead gave Foley the choice of resigning or being fired. Foley was discharged on March 13, 1983. Foley filed suit against Interactive Data Corporation alleging three causes of action: tortious discharge in violation of public policy, breach of an implied-in-fact contract to terminate only for good cause, and tortious breach of the implied covenant of good faith and fair dealing. The superior court sustained the company's demurrer without leave to amend and dismissed the action. The Court of Appeal affirmed the judgment. The Supreme Court granted review.
View caseThe City of East Cleveland employs a worker whose position is defined by state law as terminable at the employer's discretion. The city ends the employment without a hearing. The worker has no property interest in continued employment because the position exists at will.
A tenancy at will ends at any time upon notice from either party and has no designated period. A periodic tenancy continues for successive intervals unless terminated and arises when rent is paid and accepted after an invalid lease.
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An oral lease for more than one year that fails the statute of frauds creates a tenancy at will if the tenant takes possession but the parties do not engage in substantial performance clearly referable to the lease terms.
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Yes. Either party may end the relationship without notice or cause unless an exception such as public policy or an implied contract applies.
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None. The employee lacks a property interest protected by due process because the position is terminable at the employer's discretion under state law.
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