TERMINATION FOR CAUSE Sometimes an employer is willing to give up the right to termi- nate an employee at will and offer job security in the form of an employment contract. For example, the labor market may be tight, and the employer may be having trouble attracting qualified candi- dates, a particular position may just be difficult to fill, or a desirable candidate may be of interest to the competition.

One way to promise job security is to offer employment for a specified period of time as long as the employee’s performance remains satisfactory or to agree that employment can be termi- nated only for cause or good cause. When an employer makes such an offer to a prospective employee, and the employee accepts the offer and begins work, the employer is bound by the arrangement. The employee is no longer at will, and he or she cannot be dismissed except as stated in the contract.

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