Written Contracts

Written contracts were long the exception in private-sector employment, but that may be changing. Employers are increasingly asking employees to sign contracts that govern only part of the employment relationship, such as arbitration agreements. But contracts for just-cause termination remain rare and tend to exist only when the employee has sufficient bargaining power. These include the collective bargaining context where unionized employees (through their union representatives) negotiate a written “collective bargaining agreement." CBA, which we will briefly study later in this course, cover the relevant “bargaining unit” and are often very detailed. High-level employees, including executives and upper-level managers, may be able to navigate a for-cause contract. Sales employees and other workers whose compensation fluctuates based on performance may also have written contracts.

In this unit, we will consider how to identify when a written contract is for cause and how courts deal with contractual ambiguities.