Originally from Fundamentals of Labor Arbitration

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7:01 INTRODUCTION

The traditional rule is that a contract of employment for an unspecified term is terminable at will by either party. This means that either the employee or the employer can end the employment relationship any time they please for any reason not prohibited by law or for no cause at all.

Most collective bargaining agreements reject employment-at-will. They provide that the employer may discipline or discharge employees only for “just cause,” “reasonable cause,” “proper cause,” or “for cause.” Under the just cause standard, an arbitrator must decide whether the facts support the employer’s accusation that the employee committed the offense. Second, the arbitrator must determine whether the employee was accorded due process. Third, the arbitrator must decide whether the employee’s offense is sufficient cause for the disciplinary action taken by the employer.

7:02 JUST CAUSE CLAUSES

The principle of just cause normally arises from a clause in the collective bargaining agreement. In some jurisdictions, just cause has been found in the implied covenant of good faith and fair dealing, or from statutory protections—particularly those applicable to public employees. In some situations, just cause may be implied from past practice, disciplinary policies, or statements in employment handbooks. In collective bargaining agreements with a just cause provision, the clause may take two forms: It could be a simple general statement, such as, “The employer may discipline or discharge an employee only for just cause.” Alternatively, the cause could list misconduct for which an employee can be disciplined or discharged. For example, it could say, “The parties may agree in their collective bargaining agreement that an employee may be disciplined for just cause only for specific, enumerated offenses.”