Looking at Canada, which is mid-way between the USA and the civilized world:
Unless you are in job in a union (which have contracts with employers) or have a specific contract, there is an “implied contract”. Labour law and legal precedent set the terms for this, and there are nuances, but generally -
you can be fired for “for cause” for egregious behaviour - theft, assault, insubordination, etc. For problems like habitual lateness or bad performance, need an escalating set of warnings from HR and opportunities to correct first. Things like sexual harassment may be immediate or corrective, depending on the seriousness.
When a person is hired, contract or company policy may lay out a probation period, usually 6 weeks to 6 months, during which the employer may decide to terminate the arrangement because, for example the person is not a good fit for the job or incompetent or unreliable or whatever.
Yes, an employer can say “we don’t want you here any more” or “I’m letting you go so I can hire my son-in-law” BUT!! After a certain amount of time they have to pay for the privilege. The same applies if they are closing the doors and laying everyone off. (It goes without saying, if the action appears to be discrimination against a protcted category - race, creed, colour, orientation, etc. - the employer will pay a LOT more for the action.)
Provincial law usually sets a minimum - for Ontario
|Period of employment | Notice required|
|Less than 1 year | 1 week|
|1 year but less than 3 years | 2 weeks|
|3 years but less than 4 years | 3 weeks|
|4 years but less than 5 years | 4 weeks|
|5 years but less than 6 years | 5 weeks|
|6 years but less than 7 years | 6 weeks|
|7 years but less than 8 years | 7 weeks|
|8 years or more | 8 weeks|
Note it says notice - the employer can give you a warning and require you to work that time, or pay you to not show up. What they cannot do is say “here’s your paycheque, don’t bother showing up from now on.” But then they have to hope the employee keeps performing for the weeks leading up to the end.
This is the minimum - for more complex jobs, situations like age, specialization, availability of alternative jobs in that field, etc. the amount can be higher. This may require a lawsuit for wrongful dismissal, if the employer does not offer what the employee thinks is appropriate. amounts up to 2 years and a maximal rule of thumb of a month for each year for managerial and higher professional jobs might be to result.
(There’s also “Wallace damages” if the employer does not treat the employee fairly. Wallace sued when he was marched out by security in front of all employees for no good reason. Also, trying to claim “fired for cause” when the cause is invalid can be a very expensive thing for employers to do.)
There is also an issue called “constructive dismissal”. If a person is significantly demoted (or their tasks and responsibilities cut back) or their pay cut for no good reason, they can choose not to accept it and sue for “constructive dismissal” - equivalent of being let go. it’s a gamble, depending on how the court sees the situation.
If the employer lays off a large number of people at once, there are laws about notice etc. Friend of mine worked for a large employer who closed a plant - because over 100 were affected, part of the law said he was entitled to the X% of his best possible pension. I.e. he could have retired at 55 with full pension, but at 45 he could look forward to collecting 2/3 of full pension at 55 instead of the default in the plan’s rules, which would have been much less, and starting age 65, for people who did not reach 55 and 30 years.
the biggest complaint recently is that in cases of bankruptcy, employees’ outstanding wages and separation pay are at the end of the lineup for payouts.
There are also a lot more rules that tend to favour the employee. But bottom line, it can cost a lot more to lay off all the employees in Canada.