Does an employment agreement with a fixed term negate employment

UPDATED: Oct 1, 2022

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Does an employment agreement with a fixed term negate employment

I have an employment agreement with a 1 year term. At the 6 month point, my employer desires to release me for a reason other than for cause, which is supposed to only take place during a renewal period with notice at the end of the year. There is not an at will employment clause in the agreement. Can they legally terminate me without meeting the full financial obligation of the agreement?

Asked on October 10, 2018 under Employment Labor Law, Kentucky


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

A contract does negate "employment at will" so long as the contract does not itself state that notwithstanding the contract, employment remains employment at will (or something to that effect). Without some language in the contract preserving the employer's right to terminate you like this, if they fire you in violation of the contract's terms, they are in breach of contract and you could sue them for compensation (such as the pay you'd earn during the time they should have been, per the contract, obligated to retain you).

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