Legal Question in Employment Law in Alabama

Employment contract terms

I am in a position to accept my first executive level job where I will be able to have an employment contract. However, my potential employer said they would only agree to their standard employment contract that other executives at my level are signing. It was drawn up by their attorney. Besides having unique benefits that ''normal'' employees don't have, the primary reason for the contract is so that I can no longer be terminated ''at will''. In summary, the language states that if I am fired ''without cause'' I will be paid a lump sum equal to 6 months of salary. I have a couple of questions about this language. What is meant by ''without cause''? Is that a legally defined phrase or can it mean anything they want it to mean? Nowhere in the contract does it define the phrase ''without cause''. Since it is not defined, couldn't my employer come up with any reason (whether true or not) and put the legal burden ($$$) on me to prove that it wasn't a good ''cause''? In your opinion, is a contract with this wording worth signing or does it offer virtually no PRACTICAL protections against being terminated ''at will'' anyway? Should I insist on a contract with a specific list of causes to which I can be terminated?


Asked on 10/31/02, 6:14 pm

1 Answer from Attorneys
Michael McNair M. S. McNair, Attorney-at-Law, P.C.

Re: Employment contract terms

You could ask for specific reasons for termination, but they probably would not do it. With or without cause has been defined by the courts in Alabama over the years. There must be some type of wrongdoing on the part of the employee, or a reduction in force, or lack of work, or something other than the whim of the employer. Yes, they could make up something and force you to take legal action to enforce the contract, or for breach of contract. I know of no way to prevent something like that. Not having read the contract, I can't give you a full opinion concerning same, but it certainly would be better than nothing. You really need to have an attorney read it and get his or her opinion. good luck.

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Answered on 11/03/02, 4:27 pm


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