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At-will employment allows employers to fire employees at any time without warning, for any reason - except for illegal ones - or for no reason at all. Similarly, employees are free to leave their job at any time. This fosters flexibility for employers but lacks job security for employees.

Exceptions include public policy (e.g., cannot fire for refusing to break the law), implied contract (suggesting job security), and covenant of good faith (e.g., firing to avoid paying out benefits). These exceptions protect employees from unjust termination.

Discrimination laws prohibit termination based on race, color, religion, sex, national origin, age, disability, or genetic information. Employers must ensure terminations do not violate these laws, adding a layer of protection for employees.

The lack of job security under at-will employment might adversely affect employee loyalty and engagement. Employees may be more likely to leave for more secure opportunities, affecting the employer in terms of retention and morale.

Employers may feel more at ease hiring with at-will employment, knowing they can terminate without cause. However, it could result in less thorough vetting of candidates or turnover, affecting the employee’s feeling of job security.

Even with at-will employment, best practices suggest employers follow a consistent termination procedure to avoid potential legal issues, fostering fairness and transparency for employees.

Wrongful termination occurs when an employee is fired in violation of an employment agreement or the law. In an at-will setting, legal actions can be pursued by employees if terminations are for discriminatory reasons or other exceptions.

Employment handbooks may inadvertently create implied contracts if they contain language that suggests job security. Employers need to clearly state the at-will nature of employment in handbooks to prevent misunderstandings.

Written, oral, or implied employment contracts may limit at-will employment by specifying conditions or duration of employment, which can offer more job security to employees and require more cause for termination from employers.