The short answer is yes, but it depends on the specific terms and circumstances surrounding the contract. This section explores the conditions under which a business contract can be cancelled and the potential consequences of doing so.
An employer may terminate the services of an “at will” employee, with or without cause, at any time — as long as an employee is not let go for an unlawful purpose, such as age or racial discrimination.
The employer may not terminate the contract before the time. The reason for this rule is that parties bind themselves in the contract for a specific time period and the commitment should be honoured. Recently in two cases, the Labour court had to determine this issue again.
Termination provisions often mandate specific requirements for ending a contract, such as providing written notice within a specified time-frame (commonly known as a “notice period”). Failure to adhere to these provisions may result in breach of contract, exposing the breaching party to liability for damages.
Firing at-will employees in Pennsylvania is subject to a two-prong notice requirement. All separated employees in Pennsylvania—whether they were terminated or resigned—must be notified of the availability of unemployment compensation. Employers must provide a completed Form UC-1609 – Employer Information.
Is a Letter of Termination Required? For the most part, the Federal Labor Standards Act (FLSA) doesn't require organizations to provide letters of termination. The exceptions are when employees are part of a union, a collective bargaining agreement, or certain mass layoffs or corporate closures.
Pennsylvania does not have a state law requiring employers to provide advance notice of termination. However, employers may be subject to the federal WARN Act, which requires some employers to provide advance notice of mass layoffs or plant closings.
An employer may terminate the services of an “at will” employee, with or without cause, at any time — as long as an employee is not let go for an unlawful purpose, such as age or racial discrimination.