Most employees in Pennsylvania do not have a formal employment contract. Without a contract, you are considered an at-will employee, meaning your employer can terminate your employment for almost any reason—or for no reason at all. However, this broad authority is not unlimited. Employers cannot terminate you in violation of the law, such as for discriminatory reasons, in retaliation for asserting legal rights, or in breach of an implied contract.
At-Will Employment vs. Contract Employment
As an at-will employee, your protections are more limited compared to someone with a formal employment contract. Your employer can:
- Terminate your employment with or without cause.
- Lay you off if your position is no longer needed.
- Change job duties or conditions in most situations.
This also means that theoretically, you could go to work one day and be informed that your employment has ended.
Your Rights as an At-Will Employee
Just as your employer can terminate you at will, you also have the right to resign at any time. Employment contracts that fix your term or restrict departure generally do not apply to at-will employees.
However, there are legal limitations:
- Employers may require you to sign agreements such as non-compete or confidentiality agreements.
- You are prohibited from taking sensitive trade secrets to a new employer.
Restrictions on Terminating At-Will Employees
Pennsylvania does not recognize a general covenant of good faith and fair dealing in at-will employment, as consistently upheld by the Pennsylvania Supreme Court. Nevertheless, employers cannot terminate employees in violation of public policy. Examples include:
- Retaliation for filing a Workers’ Compensation claim.
- Termination for reporting legal violations or unsafe workplace conditions.
In some situations, an implied contract—such as company policies promising job security—may also restrict at-will termination.
Discrimination and Wrongful Termination
Even as an at-will employee, you are protected by federal and state anti-discrimination laws, including protections against termination based on:
- Race, color, national origin, sex, religion, or age
- Disability or medical condition
- Retaliation for asserting legal rights
If your termination is discriminatory, you may be entitled to economic damages (lost wages, benefits) and non-economic damages (pain and suffering). In cases of egregious misconduct, punitive damages may also apply.
How to Protect Yourself as an At-Will Employee
To protect your rights:
- Document everything related to your employment, including communications, performance reviews, and incidents that may indicate wrongful behavior.
- Consult an experienced employment lawyer if you suspect wrongful termination, discrimination, or retaliation.
Taking these steps early can strengthen your case and improve your chances of obtaining compensation.
Contact the Philadelphia Employment Lawyers at The Gold Law Firm P.C.
If you believe you have been wrongfully terminated, the Philadelphia employment lawyers at The Gold Law Firm P.C. can review your case and help determine whether you have grounds for a lawsuit. We offer free initial consultations. Call us at 215-569-1999 or contact us online today. We are located in Philadelphia and Pennsauken, NJ and serve clients across both states.
