Can a sign an employment agreement I don't have a right to terminate?

Provided by:  Jennifer Kirschenbaum, Esq.

September 10, 2019

Question:

Hi Michael,

I recently received an offer for employment but have concerns about the termination clause.  It is a 3 year term and I only have the ability to terminate upon a breach by the Employer.  Can I still sign?

Thanks, 
Dr. O 

Answer:

While increasingly rare, there are still some archaic agreements which do not give an employee the ability to terminate the agreement “without cause.”  Without cause termination means you have the ability the terminate the agreement at any time, for any reason, generally upon some notice period.  The notice period depends on the length of the agreement but is usually 30/60/90 days prior written notice.  I would almost never counsel a healthcare professional to sign an agreement without the ability to terminate without cause.  This is for several reasons but most importantly, situations often change and you may need the ability to get out.  

Whether your boss is completely intolerable, you fall in love and want to move across the country or need to take care of a family member, situations often change and without the ability to terminate for any reason, you may be stuck in a situation where you are unhappy for several years.  Under this scenario if you do terminate, you can be sued for breach of contract by your Employer.  While you may believe you are signing on for your dream job, you would be surprised at how often circumstances can change and you can find yourself in a bad situation.  This is why having an attorney review your employment contract prior to signing is crucial, as you must have the ability to get out upon some specified notice period, prior to the expiration of the term of the agreement.

 


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