What are implied contracts?

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Jul 16, 2021

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Where there is no written contract, the courts in most states are willing to find an implied contract arising out of the terms set forth in an employment application, employee handbook, employer policies and procedures manual, verbal representations by management and/or regular personnel practices. Whether there is an implied contract depends upon the particular facts of any given employment relationship.

An employer that wants to minimize the risk of such an implied contract should obtain a written and signed acknowledgment from employees that nothing in the application, policy manual, handbooks, etc., constitutes a contract of employment, that the employee is an “at will” employee and may be terminated at any time for any reason or for no reason at all, with or without advance notice.

Click here for a useful article on employee policies.



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