In most instances, an employment contract will not state its expiration date. In such a case, the contract may be terminated at any time by either party. If the employment contract does not have a definite duration, it is terminable at will. This is called employment at will. Under the employment at will doctrine, the employer has historically been allowed to terminate the contract at any time for any reason or for no reason. Some State Courts and some State Legislatures have changed this rule by limiting the power of the employer to discharge the employee without cause.
In Guam, an At Will Employment Agreement refers to a contractual agreement between an employer and an employee, which states that the employment relationship can be terminated by either party at any time, for any reason, as long as it is not unlawful or discriminatory. This agreement is built on the principle of freedom of contract and serves as the foundation for most employment relationships on the island. The At Will Employment Agreement in Guam is based on the concept that both the employer and the employee have the freedom to terminate the employment relationship without prior notice or cause. This means that the employer can dismiss an employee for reasons such as poor job performance, violation of company policies, or strategic downsizing, without needing to provide a specific justification. Similarly, the employee can resign from their position without having to provide a reason. It is important to note that this arrangement acknowledges the right of both parties to terminate the employment relationship without any legal consequences. However, it is crucial to understand that the At Will Employment Agreement in Guam does not grant employers the freedom to terminate an employee's contract for unlawful or discriminatory reasons. Accordingly, employers cannot fire employees based on their race, color, national origin, religion, gender, disability, or other protected characteristics as outlined in local and federal anti-discrimination laws. If such a termination occurs, it may be deemed illegal and may result in legal consequences for the employer. There are no specific types or variations of At Will Employment Agreements in Guam, as the concept generally follows uniform standards set forth by the legal framework and employment practices in the territory. It is typically implied in most employment contracts unless explicitly stated otherwise. However, employers in Guam may choose to establish additional provisions alongside the At Will Employment Agreement, such as clauses defining severance pay, notice periods for termination, or specific disciplinary procedures. These additional clauses should be drafted carefully to comply with local labor laws to ensure the agreement remains in accordance with local regulations. In conclusion, the At Will Employment Agreement in Guam represents the default employment relationship between employers and employees on the island. It allows both parties the freedom to terminate the employment relationship at any time and for any reason, provided it is not unlawful or discriminatory. Employers should always ensure compliance with relevant labor laws and regulations when dealing with employment terminations, even within the framework of an At Will Employment Agreement.
