In Texas, An Employer Generally Does Not Have to Warn You Before Firing You

Every day, the firm receives several calls from potential clients. Many of these calls concern the termination of employment. Many call seeking to sue their former employers for wrongful termination on the basis that they were not written up or warned prior to termination. This is a common misconception.

Texas follows the doctrine of employment-at-will, and employment for an indefinite term may be terminated at will and without cause. (citation omitted). Absent a specific contract term to the contrary, this doctrine allows an employee to quit or be fired without liability on the part of the employer or employee, with or without cause.  

Reyna v. First Nat'l Bank, 55 S.W.3d 58, 71 (Tex. App. – Corpus Christi 2001, no pet.). Even a provision in an employee handbook describing a progressive discipline process typically does not modify the at-will employment relationship.

A discharged employee who asserts that the parties have contractually agreed to limit the employer's right to terminate the employee at will has the burden of proving an express agreement or written representation to that effect. To rebut the presumption of employment at will, an employment contract must directly limit in a "meaningful and special way" the employer's right to terminate the employee without cause. (citation omitted). In an employment-at-will situation, an employee policy handbook or manual does not, by itself, constitute a binding contract for the benefits and policies stated unless the manual uses language clearly indicating an intent to do so. (citations omitted). In those cases holding that personnel manuals may create contractual rights, there is either language in the manuals expressing contractual intent, or the manuals were complemented by oral agreements making the policy provisions binding. (citation omitted). . . A disclaimer in an employee handbook, such as the one included in the preface, negates any implication that a personnel procedures manual places a restriction on the employment-at-will relationship.

Williams v. First Tenn. Nat'l Corp., 97 S.W.3d 798, 803 (Tex. App. – Dallas 2003, no pet.). An employee handbook's description of usual disciplinary procedures would have to be "clear and specific" to modify an employment at-will. See Montgomery Cty. Hosp. Dist. v. Brown, 965 S.W.2d 501, 503 (Tex. 1998).

Notwithstanding, the law does not allow an employer to terminate employees on the basis of protected characteristics or in violation of public policy. So long as the reason for termination is not illegal, the employer can terminate employees at-will. However, I always remind people that the at-will relationship goes both ways: you can in effect terminate your employer for good cause, bad cause, or no cause. At the end of the day, employers need employees as much as employees need to make a living. Employees should not rely on an employer's written disciplinary policy unless it explicitly modifies the at-will relationship. In order to be sure of this modification, you should seek the advice of an employment attorney.

If you have any questions about the at-will employment doctrine in Texas, please schedule a consultation today. Consultations are completely confidential. Do not rely on this post as legal advice. This post does not create an attorney-client relationship between the firm and the reader. Do not act in reliance on the contents of this post without seeking the advice of counsel.