At-will employment law states that employers may dismiss a worker even without prior warning. Consequently, the worker can leave the employment without alerting the company. However, at-will employment prohibits the termination of work due to discriminatory issues like racism, religion, or age. There are no legal complications if the employer fires the worker or the latter abandons his profession. The management can change terms of employment, such as salaries and paid off leaves, without notifying the labor force. The law’s exceptions encompass employed contracts, public policy, good faith and dealing, and implied contracts. There are disadvantages and advantages to this form of working. At-will employment is more helpful to the owner than the workforce. It gives employers the power to terminate employment, eliminates the waste of resources, and allows firms to adapt quickly to the challenges; arbitration can help resolve the employee-employer conflict.
Advantages of At-Will Employment to Employer
At-will employment has a substantial benefit to the owner compared to the worker. The method facilitates a quicker and faster termination process of firing employees (Bhargava & Young, 2021). Firing workers under a contract entails multiple discussions, complex negotiations, and delays in agreement. However, their employers do not tell the at-will laborers why they are being fired; it is easier to get rid of the poor performing workers. These employers’ actions do not result in a backlash concerning the termination of employment, as they do not deal with the hindrances of contract breaching. Employers may use this technique to eliminate the staff, causing difficulties to the firm’s operations. Thus, the productive and quality workers can be kept at the enterprise leading to quality products within the firm. An at-will worker who harasses others can easily be dismissed by the employer, thus creating a favorable working environment for the remaining workers. It creates happiness within the company, leading to increased production by getting the unwanted employees out of the firm.
Contract discussions, especially for stubborn workers, can be challenging for employers. At-will employment eliminates the waste of resources employers faces when negotiating contracts with the workers (Gertz, 2017). Time is wasted in the company agreeing or renewing the agreements for their workers. Finances are misused in organizing sessions aimed at helping the owner and the worker agree on the salary and working conditions. There are no discussions regarding contract negotiations and renewal in employment at will. Thus, the financial resources wasted in negotiating contracts are devoted to helping the corporation’s running. The time saved by the managers can be used in formulating better policies that improve the general productivity of the firm.
At-will employment is vital to employers as it helps them quickly adapt to changes. Unpredictable events and circumstances may render a business into financial constrain. These may include changes in the world market, product prices, or even a global pandemic. The clearest example is the COVID-19 pandemic, which caused a worldwide economic crisis (Gupta, 2020). Many companies were financially constrained, which made them lay off many workers to continue their operations. There was a disruption in the global market as the COVID-19 disease resulted in the death of many people. For some companies that relied on exporting their commodities, some nations had to ban air travel, resulting in a decrease in the revenues gained from export sales. The firms that had employed workers under contracts faced hurdles in laying off their workers. Thus, when these are at-will employees, the companies are saved from paying for the workers’ contracts. A company with at-will employees can, therefore, quickly adapt to the unpredictable changes in the global market.
Contractual work oftenly bases promotion and salary increment for their workers on seniority or agreed terms. Thus, it favors those with overall experience and history with the company. Employee merit rather than seniority is encouraged through at-will employment, significantly benefiting the corporation (Hertel-Fernandez, 2018). At-will employment forces even senior workers to recognize that they can lose their employment if they do not meet the organization’s demands seriously. It motivates them to become better workers, leading to the company’s growth and prosperity. They recognize that their hardwork and devotion will make them retain their employment at the company, not their seniority. The less senior workers are stimulated to work harder to maintain their position at the enterprise. These laborers can even be encouraged to work harder to be recognized and promoted by the company. The senior and less senior employees who are not following the company’s culture can easily be laid off by the employers. Thus, a better working environment and culture are created within the firm. It drives the business to make more profits and effectively compete in the global market.
When contractual demands of workers are not met during their work tenure, this may contribute to strikes among the labor force. It may even be a source of judiciary conflicts as the employees must meet the agreed terms. Thus, it significantly disrupts the firm’s economic operations, affecting its productivity and profitability. There is less risk for strikes when at-will employees are in a company (Gertz, 2017). The at-will staffs fear engaging in strikes because they know that the company can easily replace them as they can be fired at will, raising no legal issues. They know that if they engage in strikes, they are seldom likely to receive payments for their employers.
Employment at will gives employers more power to dictate their workers’ job security. The management can fire the workers at any time for no substantial reason. The company does not provide notices to its workers regarding the termination of their employment. It leads to less job security for its employees as they are uncertain of their employment situation (Hur, 2019). It may create stress among the workers due to this superiority that the employers have to dictate the terms of employment. It may affect the company’s productivity even if the employers have the advantage of controlling the employment terms of their workers. Stressed labor leads to decreased production, which affects the business’s productivity and profitability.
The less protection that the at-will employees are accorded makes employers take advantage of them. These workers are only protected by the workers’ public policy but not with privacy protections, such as the contracted employees or unionized workers (Coombs & Newman, 2020). In contracted employment, the employers can not breach the signed contracts. Workers’ unions help to fight for better working conditions for their workers. The associations may advocate for a better working environment or better salaries. However, there is no union representation by the union in at-will employment. Thus, the at-will workers may work under poor environmental conditions or be paid poor salaries by the employers. Any complaints from the at-will employees may cause quick dismissal from their position. Therefore, they resolve to maintain silence despite the impeding harassment of their employers. The lack of representation of the at-will laborers makes the owners use the opportunity to harass them.
At-will employment does, the employers have less transparency towards their workers. A company firing a worker without a substantial reason may not explain why he is being fired (Gertz, 2017). Employers’ power to sack workers limits the worker’s chance to understand the motives of being sacked. Additionally, this may lead to reduced openness of the workers to their employees, as they fear being sacked. The workers may thus prefer to keep quiet on an issue that may negatively or positively affect the organization. The employees may fear telling innovative ideas to the business owners; these ideas would have positively impacted the company, consequently causing improved employer-employee relations. Therefore, this enhances reduced transparency within the organization, leading to reduced productivity.
Even though the at-will employment rules prohibit termination of employment based on discrimination, some employees may break this rule. The at-will profession gives an employer a chance to terminate workers’ employment for senseless and inhuman reasons. Hersch and Bullock (2019) argue that this discrimination leads to labor disparities experienced in the USA. Accordingly, an employer may choose to lay off a worker because of their race, religion, disability, age, or nationality. The owners may give a different reason for terminating the employment, yet the actual reason was based on prejudice. Racism is still a significant problem that still exists in modern societies. A White employer may decide to fire a Black worker so that he can employ a fellow white. Religious differences may cause Muslim employers to choose between hiring a fellow Muslim and laying off a Christian. A French manager may decide to lay off an English worker so that a fellow French worker can take the position. The employers’ advantage allows them to make meaningless employment-related decisions that favor a particular group. It is a substantial disadvantage to the at-will employees as their work security is not guaranteed. Employers have a vital role in determining their workers’ fate.
At-will employment can make employers engage in unethical means of acquiring finances. A manager of a particular company may resolve to get a bribe from an unemployed individual so that they can lay off an at-will employee (Hijal-Moghrabi, 2017). Thus, engaging in corruption can grow into the organization, making the employers prefer certain groups of individuals at the expense of the others. These workers who may be brought to the firm through these viral deals may be incompetent or even less experienced than those laid off. Therefore, competent workers can lose their employment innocently because of this vice of corruption.
Employment at will is a disadvantage to the worker as it increases the tension. The stress that an individual face because of the threat of termination of employment may negatively impact the relationship with fellow workers (Lelo et al., 2019). It is evident in a company that encourages competition among its employees, such as in a sales company. Only individual success will give the workers a validity of their significance within the corporation. In such firms, the workers are often angry at each other, and other workers’ success in the company brings them more insecurity within the corporation. Such employees may feel that they are not meeting the company’s demands and therefore envy those who appear to be more successful. Therefore, there is a disjointed operation in the working environment, which may overally affect the company’s performance. Unhealthy competition is encouraged among the workers, adversely affecting the workers’ relationships. Workers’ communication and cooperation are vital for the success of any business. Thus unhealthy relationships within the company may negatively hinder the company’s success.
The at-will workers may find it hard to achieve work and social life balance. Because the employers feel superior, they fail to recognize employees’ need to maintain a healthy life and harmony. Thus, these employers treat the workers not regarding the workers’ considerations, thus encouraging a high turnover rate (Coggburn, 2017). Therefore, some inconsiderate owners may thus find the opportunity to mistreat the at-will workers. They may poorly pay them or force the employers to work under poor conditions. The owners may intentionally delay the salaries of their at-will laborers because they know they can end their employment. The firms may not start incentives programs for their at-will workers. These actions often lead to frustration among the workers, leading to poor mental health and ultimately affecting productivity. Overworking and underpaying at-will workers make them opt to resign and look for employment in different places, which will show appreciation of their input. Companies do such practices because these groups do not have the unions to represent them or are not under contract.
The managers may show the willingness to sack the workers who show dissatisfaction and bring in new workers. These workers may be displeased because of the miserable working conditions, but the managers and employers may not care about these; all they focus on is making a profit for the organization. Owners become more concerned about maximizing their profits rather than considering their workers (Agnello et al., 2018). The workers who show the urgency to work under these strenuous conditions are maintained, while those who can not cope have their employment terminated. It leads to a disjointed employee-employer relationship which adversely reduces the company’s productivity. These unsupportive managers are a significant cause of the high turnover of the at-will laborers because they do not feel well appreciated. Such workers show a decreased will to work for such firms and thus opt to resign so that they can guard their mental health.
The employer may alter the terms of employment without notifying the employees; thus does not implicate any legal consequence. Andrias and Hertel-Fernandez (2021) argue that many private employers are free, deliberate disciplinary measures or modify the working terms in the US. These may be salaries, paid-off leaves, or benefit plans entitled to the workers. The workers are not tied to a contract or are protected by the unions from such mistreatments. The management’s unfair decisions without consultation lead to labor turnover. An increased work dissatisfaction because of the poor payments creates instability within the firm, consequently leading to reduced production.
Advantages of At-Will Employment to Worker
However, there are a few advantages that at-will employees have in employment. If the at-will employees feel dissatisfied with the working conditions, they may resolve to terminate the work and look for better opportunities (Gertz, 2017). When these employees suddenly resign, companies may face challenges replacing them. A company with an acknowledged tendency to fire workers will be less likely to attract top professionals in the sector as people feel insecure about working in such a firm. It helps to reduce the mistreatment that these workers face in employment, as the companies fear losing them, consequently affecting their productivity.
The other crucial advantage of the at-will employment policy is that it offers career freedom to an individual. If a worker finds another employment that he may be interested in, they are free to join the profession of their choice (Gertz, 2017). There is no binding contract that ties the worker to the organization. It may be courteous to give the management notice, but they do not face any legal implications even if an individual cannot do so. If a worker considers furthering his education or traveling, at-will employment may suit the person. A person new to a profession may regard this form of work if unsure about making long-term commitments. Thus, at-will employment may help meet personal needs like traveling and furthering education. However, the benefits this employment form has for the employer outweigh those of the worker.
How Arbitration Can Balance At-Will Employment
Arbitration entails two parties agreeing and submitting a dispute to an arbitrator to reach a consensus. Thus, the parties agree to a private resolution of the conflict rather than going to court. The method is quicker, flexible, and cheaper for all the sides concerned. The selected arbitrator must have the acknowledged knowledge and expertise in the related field of dispute than judges. They must have greater flexibility in decision-making to arrive at a settlement favorable to either party. Therefore, arbitrators may play a crucial role in solving the disputes related to at-will employment.
In arbitration, confidentiality is guaranteed between the arbitrators, employees, and employers. Unlike court proceedings, arbitrations are private, and thus the parties may relay more sensitive information to the arbitrator during the proceedings (Folberg et al., 2021). The employer may thus freely give a valid reason for the worker’s dismissal, even if sensitive. Workers may present their claims to the arbitrator and even release complex reasons they think their employment was ended. These claims may include claims such as racism, corruption, or discrimination. The arbitrator will listen to both sides and give a neutral solution favorable to all the parties. If the employer terminated the worker’s employment legally, the arbitrator would explain to the latter why the decision was undertaken accordingly. Perhaps, the company had to lay off the employee because it was facing financial constraints in the market. If the termination was based on discrimination, the employer might get sensitized against such practices. Therefore, the employee may be allowed to resume working after employment termination.
Arbitration helps to arrive at a fair decision for all the concerned parties. If an experienced arbitration counselor is used in dispute resolution, an outcome that brings satisfaction to the conflict groups is attained (Moses, 2017). Workers can present their complaints to the arbitrators, such as low pay or an inappropriate working environment. Therefore, the employer can explain why the workers had low salaries or poor working conditions. There can be a refutation of the claims made by the worker by the owner. The arbitrator will conduct the appropriate investigations to determine the truth to decide which will favor all the parties. If it is found that the termination of the worker’s employment was unjust, the employer may be advised to rehire the worker. If the termination process is fair, the worker could be notified and advised accordingly.
Many criminal conflicts can be avoided through arbitration among the concerned parties. Goodwin (2020) suggests that arbitration is a significant way to attain peace. Termination of employment without valid reasons may provoke intensified emotions within the worker. Therefore, an employee may commit violent activities against the owner as payback for employment termination. Employment loss affects many individuals’ mental health, especially if it is done without prior notification. Some of these workers have families that entirely depend on them, and thus loss of employment can be stressful. These psychological disturbances evoke suicide and murder feelings in some individuals. Therefore, in arbitration, the employees may get acquainted with the essential advice that may help them adapt to the situation. They fully understand why the employer terminated their contract, and thus there is a reduced chance of employer-employee violent conflicts. Through the arbitration, the employees can get rehired by the company, thus improving their psychological status.
Arbitration can help in establishing fair rules regarding at-will employment. Through arbitration, there is transparency why the company undertook specific decisions (Gertz, 2017). If workers’ employment was reasonably terminated, but they had not been notified, an arbitrator may encourage these companies to inform the workforce earlier. The early notification gives the workers a chance to plan for the coming events and quickly adapt to the employment termination. Thus, individuals informed earlier of the sacking are less likely to suffer the mental health consequences of being unemployed. They can find a different place they can work after their employment is terminated in the previous company. Therefore, arbitration can help improve the rules governing the at-will profession.
One advantage of arbitration is that it gives finality to the undertaken dispute. The two parties choose an arbitrator who they believe is fair to either side. Therefore, the decision made by the selected negotiator is final, and no appeal is expected (Abwunza, 2020). Thus, arbitration ends the conflict as the two groups believe the negotiator makes a fair decision favorable to either party. When disputes are taken to court, one party may think that the conclusion arrived at by the judges is helpful to one side. Therefore, the party resolves for an appeal, which may waste financial resources and time for the two parties. Hence, arbitration saves time and money wasted in the court system aiming to arrive at a solution.
Conclusion
At-will employment dictates the ability of an employer to terminate a worker’s service without notification. The worker may resolve to leave the profession without informing the employer. Any of the above actions have no legal complications for either party. The at-will employment seems to benefit the employer more than the worker. The owner can alter the terms of work without informing the worker. Resources are not wasted on trying to negotiate or renew professional contracts. At-will employment may enable an organization to quickly adapt to challenges, such as those brought by the COVID-19 pandemic. The employers may break the rules and participate in corrupt deals to get their preferred to the organization. The at-will workers’ treatments may be subjected to may affect their career and social life balance. There are fewer incidences of strikes because the workers fear the loss of their jobs. The arbitration may help in resolving conflicts associated with at-will employment. A favorable decision for all the parties is attained through arbitrary processes.
References
Abwunza, A. A. (2020). Influence of fairness perceptions on cooperative behavior in construction arbitration. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 12(4), 1-40.
Agnello, V., Stolowy, N., & Winter, J. F. (2018). Divorcing your job French style: An argument to end at will employment in the United States. Journal of Vincentian Social Action, 3(2), 6. Web.
Andrias, K., & Hertel-Fernandez, A. (2021). Ending at-will employment: A guide for just cause reform. Web.
Bhargava, V. R., & Young, C. (2021). The ethics of employment-at-will: An institutional complementarities approach. Business Ethics Quarterly, 1–27. Web.
Coggburn, J. D. (2017). At-will employment in government: Its impact in the State of Texas. In American Public Service (pp. 151-174). Routledge. Web.
Coombs, C. K., & Newman, R. J. (2020). Employment-at-will exceptions, social welfare programs and the decline of unions. Department of Economics, Louisiana State University. Web.
Folberg, J., Golann, D., Stipanowich, T. J., Reynolds, J., & Schmitz, A. J. (2021). Resolving disputes: Theory, practice, and law. Wolters Kluwer Law & Business.
Gertz, S. C. (2017). At-will employment: Origins, applications, exceptions, and expansions in public service. In American Public Service (pp. 47-74). Routledge. Web.
Goodwin, H. D. (2020). The role of arbitration in securing an Israeli-Egyptian energy hub. Arbitration Law Review, 12(1), 11. Web.
Gupta, M., Abdelmaksoud, A., Jafferany, M., Lotti, T., Sadoughifar, R., & Goldust, M. (2020). COVID-19 and economy. Dermatologic Therapy, 33(4), 1. Web.
Hersch, J., & Bullock, B. D. (2019). The law and economics of employment discrimination law. Oxford Research Encyclopedia of Economics and Finance. Web.
Hertel-Fernandez, A. (2018). Politics at work: How companies turn their workers into lobbyists. Tantor Media.
Hijal-Moghrabi, I., Sabharwal, M., & Berman, E. M. (2017). The importance of ethical environment to organizational performance in employment at will states. Administration & Society, 49(9), 1346-1374. Web.
Hur, H. (2019). Job security matters: A systematic review and meta-analysis of the relationship between job security and work attitudes. Journal of Management & Organization, 1-31. Web.
Lelo, D., Yusof, S. M., & Purba, J. H. V. (2019). Influence of work safety and work stress on productivity. In Proceedings of the international conference on industrial engineering and operations management, 3602-3609. Web.
Moses, M. L. (2017). The principles and practice of international commercial arbitration. Cambridge University Press.