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Can I fire an employee without "good cause"?

Yes, if the employee is an "at will" employee.

But some employees have contracts that say that the employee "cannot be terminated without good cause." Those contracts probably changed them from being "at-will" employees to "good cause" employees. Those contracts can be enforced even if they are oral contracts [link to employment contracts] rather than written contracts [link to employment contracts] - although it's often harder for the employee to prove there was an oral contract and what its terms were.

• Can a "good cause" contract be implied?
• Union contracts
  

Can a "good cause" contract be implied?

Sometimes. Some states have laws that say that employees who started out "at-will" eventually become "good cause" employees. According to those laws, even if you don't have a written or oral contract with the employee, the employee might still be able to "imply" from the way you treated him that he isn't "at-will" any longer.

There are many factors that may prove that your employee has created an "implied" contract, including: 1) long term employment (the longer the employee is on the job, the harder it is for you to show that he is still at will), 2) promises by you to the employee of future employment (such as "as long as you do a good job, you can expect to keep your job), 3) good performance reviews, 4) promotions, and 5) policies or employee manuals that state that the employee will be given "progressive discipline" (such as a letter of warning, followed by a suspension, etc.) rather than immediate discharge if the employee has problems at work.

Establishing an implied contract is very difficult. However, if an employee brings a claim against you based on an implied contract, you should see an attorney who specializes in employment law.

Union contracts

Your contract with the union probably says that you can't fire your employees unless you have "good cause." If an employee was fired and doesn't think you had a good reason, the employee may file a grievance through his union. But the employee probably can't sue you in court - because he or she is supposed to go through the union to get satisfaction.