Legal Ethics and Professional Responsibility Commons^™

An Employer Cannot Avoid Its Obligation To Contribute To An Employee-At-Will's Pension Plan By Terminating The Employee., Carol Jendrzey

St. Mary's Law Journal

In McClendon v. Ingersoll-Rand Co., the Texas Supreme Court held an employer cannot avoid its obligation to contribute to an employee-at-will’s pension plan by terminating the employee. A minority of jurisdictions recognize an implied contract exception to the employment-at-will doctrine allowing termination only with cause. In these jurisdictions, employers who raise the defense of statute of frauds because there is no written employment contract may be defeated by the terms of employment articulated in employee handbooks and manuals. Though both the legislatures and the courts recognize a public policy interest in protecting employee pension plans, the United States Supreme Court …