We could terminate you at any time

Q: Just recently I received a job offer, and it was unexpected. I did not think I had a chance. The compensation is good, the location is reasonable, the role will be challenging, and I liked the interview panel. I asked for the offer in writing, vs. just an “over the phone” offer. When I received the letter, all of the important information mirrors what the recruiter told me over the phone. This was a relief. But there is this sentence, which says that “you can be terminated at any time.” What does this mean? After I start this job, they could fire me? I am not sure what to make of it. I don’t want to ask because it feels like I am challenging the company and that is not how I want to start a new job at a new company. Have you ever seen this before? I asked a few friends, and no one has seen this in an offer letter.

A: Offer letters capture the highlights of an offer of employment. Usually the start date, rate of pay, title and other details are explained. Most US workers are not members of a union. Unions often represent groups of similar professions. Unions you may have heard of include Massachusetts Teachers Association, The International Association of Fire Fighters and United Auto Workers. About 10% of all US workers are union members. As most of us are “at-will” employees, this means that an employee can separate from their employer at any time, and for any reason. It also means that your employer can terminate you at any time, for any reason. It is common to have this verbiage in an offer letter. You are likely in an at-will role right now.

Employers still need to exercise care though when planning to separate an employee. An employer is prohibited from terminating an employee if the employee is prohibited from terminating an employee’s employment or taking other adverse action that is driven by illegal reasons, including the employee’s membership in a “protected class” (e.g., age, race, color, sexual orientation, gender, disability). Another reason which could be considered an adverse action is that the employee may be involved in a protected activity, like whistleblowing. Whistleblowing protects employees who disclose information which may uncover wrongdoing by an employer. For example, if a manufacturing company is contaminating water and the company is not addressing it properly. An employee could contact the Environmental Protection Agency (EPA) to report the concern, and the employee should not experience any retaliation.

Although this wording may sound frightening, it is a common term in the world of hiring and employment. Usually we see language which may include “at will,” “you can be terminated at any time, and you may decide to leave at any time.”

I am glad you asked the question. The language can sound frightening, but it should not interfere with your interest in seriously considering this opportunity. When I work with clients, I often encourage this same type of language be included in their offer letters. It sounds like a competitive offer worth further consideration!