Essay about Employment at Will

1493 Words Mar 11th, 2009 6 Pages
Employment at Will When we are dealing with the employment relationship between employers and employees, ethical issues are most likely to emerge. Especially, if a manager fires a worker without a proper reason, critics will follow this employer’s behavior. In Patricia Werhane’s paper, “Employment at Will and Due Process”, discusses two doctrines which are Employment at Will (EAW) and Due Process. It also addresses some justifications and objections for EAW, and shows Werhane’s supportive view to Due Process. In contrast, EAW is defended by Richard Epstein in his article “In Defense of the Contract at Will”. In my paper, I will attempt to develop my argument in favor of Employment at Will that could improve flexibility and efficiency of …show more content…
(⮡) Reputational Losses. Any party who deceives will result in receiving a bad reputation. Due to an asymmetry of reputational losses, employers confront significant unfavorable economic consequences if they treat employees unfair or dismiss workers arbitrarily. (⮢) Risk Diversification and Imperfect Information. It ensures employees are not locked into a bad contract which thus wastes their effort and time. In addition, it is crucial for both parties to use EAW and take a wait-and-see attitude to make a better decision until sufficient information becomes available. (⮣) Using contract at will is much cheaper to administer. Epstein concludes his position in favor of contract at will because of its strength and flexibility, which are opposite to Werhane’s position. Based on all arguments presented by two authors, I will develop my view points to show EAW are beneficial to both employees and employers. According to Werhane’s view point, she thinks EAW is unethical and unfair to treat employees. However, she only focuses one side of employment relation because EAW is applied to both parties of employment rather than one party. Therefore, employees can quit their jobs anytime so that employers have no opportunities to treat them unfairly. In addition, EAW is a mutual and reciprocal approach to deal with employment relationship, which is demonstrated by Epstein. Flexibility can be achieved by using employment at will.

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