Without clause, employers can’t escape paying full wages

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in Employment Law,Human Resources

When it comes to employment contracts, it’s wise to include an escape clause.

Here’s why: If you don’t specify that you can terminate the contract early and then find yourself having to eliminate the employee, you may have to pay that employee the full amount he or she would have earned working the entire term of the contract.

Recent cases: In Avion v. Thompson, No. A07A1488, Court of Appeals of Georgia, Third Division, 2007, the employer had included an at-will term in the original employment contract. In other words, the employer retained the right to fire the contracted employee for any legal reason or no reason at all. That was perfectly fine, the court concluded.

On the other hand, the same court concluded in another case involving an employment contract with no at-will termination clause that full payment of wages was required in “an employment contract for a specific term” with “no provision for early termination.” (Mail Advertising Systems v. Shroka, No. A01A0148, Court of Appeals of Georgia, Third Division, 2001)

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