The 1st Rule of Employment Law

I see a lot of people who have just lost their jobs and are getting legal advice about their options.  The first thing I do is explain employment law and how it affects them.  The first item in that discussion is what I call "The First Rule of Employment Law".

The First Rule is simply this: Any employer can terminate any employee, at any time, for any reason.  Of course, there are always exceptions.  This discussion does NOT apply to unionized employees, certain employees with contracts of employment and human rights violations.  It also does not apply to employees that have been fired for misconduct.

What does the Rule mean?  Suppose I am your employer. I can terminate you because I don't like you.  Believe it, it's true. I can terminate you because my cousin Vinny is moving to town and needs a job.  Vinny may be unskilled and incompetent.  You may be my most skilled and senior employee. The law says: so what?  I may be a stupid businessman by getting rid of you, but being stupid is not against the law.  I have the right to be stupid. "Seniority" means nothing unless your employer has a policy that makes it mean something.

All of this actually makes sense.  What if you are operating a small business?  You have an employee with an attitude.  He doesn't do anything wrong enough to get himself fired, but you could replace him with an employee that has a better attitude and will be better for business.  Why should anyone have the right to dictate to you that you cannot get rid of him? 

The law does not make a distinction between small and large business in this respect. Large employers can terminate employees just as easily. I may tell you that I have eliminated your position, and then hire someone else to replace you.  I lied.  Who cares?  It's not likely that the courts care.

There is a myth that every dismissal is wrongful. The sad truth is that, in general, you do not have a right to keep your job.  Your employer can dismiss you for no reason at all.  In fact, when I advise my employer clients, I tell them NOT to give the employee a reason. All it does is generate an argument about the validity of the reason, which is irrelevant.

Most people ask me: "What about my rights?" You have the right to be terminated.  That doesn't mean that the employer doesn't have to pay you anything. 

Next week, I'll give you an idea of what the courts can do if you have been wrongfully dismissed.