Part 5: Duties to Employees

61 What are alternatives to employment at will?

Countries around the world have a number of alternatives to the United States’ “at will” system.

Countries outside the United States have developed a number of alternatives to employment at will. For example,

  • “There is no ‘at will’ employment in Japan. Japanese law requires that termination of regular employment shall be considered objectively, deemed reasonable, and appropriate upon social convention, which is read rigidly in light of Japanese judicial precedent.”[1]
  • “In Germany, there is no such thing as “employment at will”. By law, German employees must have written employment contracts that reflect the key aspects of the employment relationship (e.g., parties to the contract, work to be performed, gross salary and benefits, vacation, starting date of employment, place of performance, notice periods).”[2]
  • “There is no ‘at will’ employment in Canada. Dismissed employees are entitled to notice of termination or pay in lieu of notice, unless employment was terminated ‘for cause’.”[3]

This means that United States companies operating overseas must be careful in how they approach the employment relationship. For instance, because firing an employee may be much more difficult than in the United States, taking extra care in the hiring process for employees may be warranted. There are pros and cons to the “at will” system versus these alternatives. Being able to fire an unproductive employee easily may help with business efficiency, yet having little job security outside a limited set of statutory protections brings great uncertainty to the lives of employees.

Exercises

  1. Choose a country other than those discussed above. Spend a few minutes researching its approach to the idea of employment at will. What do you find?

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Business Ethics: 100 Questions Copyright © by Jeff Lingwall is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License, except where otherwise noted.