As Congress recently reached an agreement with President Obama to extend unemployment benefits for Americans who have been without work during this economic downturn, it may be an appropriate time to discuss when an employee may be fired as well as when an employee may qualify for unemployment compensation.

Under Ohio law, an employment relationship is considered “at-will employment” so long as there is no contractual agreement stating otherwise. “At-will employment” means that the employment relationship may be terminated by either party for any reason, so long as the reason is not protected by law (e.g. race, age, sex, veteran’s status, religion, national origin, violation of a public policy of the state of Ohio). This means that an employer can fire an employee for wearing that ugly Christmas sweater to work one day. Likewise, an employee can decide to quit during the middle of an employer’s busy period without prior notice without fear of any legal repercussions. Only a contract between employer and employer can alter an “at-will employment”.

That being said, if an employer does not have “just cause” to terminate the employment of an employee, that employee is typically entitled to recover unemployment compensation. “Just cause” is a term of art that essentially means that the employer must have legitimate business reason for terminating the employment in order to prevent an employee from collecting unemployment compensation. As such, an employer can legally fire an employee for wearing that ugly Christmas sweater to work but the employee would then likely be entitled to unemployment compensation, as the employer did not have “just cause” for said termination.

If you are in need of legal guidance concerning this or any other labor and employment law matter, contact an attorney at Polito Paulozzi Rodstrom LLP. We can help you better understand the numerous laws that affect the employer/employee relationship.