Promissory Estoppel and Employment in Massachusetts
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If you do not have an employment contract, employment is considered "at will" in Massachusetts. That means the employment relationship can be terminated at any time by either party for any reason.
One exception to this is where an employment termination is based on discrimination or retaliation. Another exception is where an employer has induced the employee to take the job based on a clear promise then breaks that promise. In legal terms, this is called the doctrine of promissory estoppel. It is related to a breach of contract claim in that you are trying to enforce a promise. It is different from a contract claim in that you may be able to invoke this doctrine even if you have no written contract. There are three parts to a promissory estoppel claim in the employment context. First, the employer makes a promise that it is reasonable to expect the employee to rely on. Second, the employee does in fact rely on the promise. Third, enforcing the promise is necessary to prevent injustice. |
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What is an Enforceable Promise
The two key elements here are a clear and specific promise and whether it is reasonable to expect the employee to rely on that promise. These are both fact-specific questions and the legal result will depend on the situation.
Generally, the more specific the promise the more likely it will be enforced. If it is more in the nature of a general assurance, it is less likely to be enforced. For example, compare two situations.
The first is a statement to a job candidate that he or she will be eligible for year end bonuses if the company does well. The second is a statement to a job candidate that he or she will receive a specified percentage of revenues, profits, or some other defined pool of money.
The first statement is most likely not specific enough to be enforced, while the second most likely is.
In all circumstances, it must be reasonable for the employee to rely on the promise. Even an unambiguous promise will not be enforced if the employee's reliance is unreasonable.
For example, if the second promise above was made to a candidate, but they were later given a written employment agreement that made no mention of the revenue sharing, it may not be reasonable for the employee to rely on the promise.
Because employment is at will under Massachusetts employment law, a court may presume that reliance on promises of job security are unreasonable. As with the above example, a generalized assurance that if you do a good job you will have a long future with the company may not be an enforceable promise. In contrast, a specific term of employment might be.
Generally, the more specific the promise the more likely it will be enforced. If it is more in the nature of a general assurance, it is less likely to be enforced. For example, compare two situations.
The first is a statement to a job candidate that he or she will be eligible for year end bonuses if the company does well. The second is a statement to a job candidate that he or she will receive a specified percentage of revenues, profits, or some other defined pool of money.
The first statement is most likely not specific enough to be enforced, while the second most likely is.
In all circumstances, it must be reasonable for the employee to rely on the promise. Even an unambiguous promise will not be enforced if the employee's reliance is unreasonable.
For example, if the second promise above was made to a candidate, but they were later given a written employment agreement that made no mention of the revenue sharing, it may not be reasonable for the employee to rely on the promise.
Because employment is at will under Massachusetts employment law, a court may presume that reliance on promises of job security are unreasonable. As with the above example, a generalized assurance that if you do a good job you will have a long future with the company may not be an enforceable promise. In contrast, a specific term of employment might be.
Proving Reliance on the Promise
The employee must also prove that they did in fact rely on the promise. This could involve leaving previous employment because of the promise. It could involve passing up other job offers.
If you are making a job decision based on something that was promised to you, you should take care to document not only the promise but also your decision-making.
If you are making a job decision based on something that was promised to you, you should take care to document not only the promise but also your decision-making.
Avoiding Injustice by Enforcing the Promise
This element of a promissory estoppel claim does not give much practical guidance. The analysis involves some combination of the specificity of the promise, the reasonableness of the reliance, and the extent to which the employee was damaged. If the combination of these things leads to a clear sense of unfairness, a court may enforce the promise.
Promissory Estoppel and Written Employment Contracts
If you have a written employment contract, that written contract in most cases will prevail over any prior oral statements or promises. A termination that complies with the written contract will most likely be upheld even if it violates an oral agreement made by the employer.
How Our Employment Lawyers Can Help
We can help you review your situation and assess whether you may be able to enforce a promise made by your employer. You can use the button below to schedule a call back from a member of our team, or give us a call at 781-784-2322.
