New Jersey case law provides that in a case of quasi-contract or implied contract of employment, the employee is entitled to the implied covenant of good faith and fair dealing. However, a new case, Saccomanno v Honeywell International, Inc. provides that if there is a written employment contract, the covenant of good faith and fair dealing does not apply.
A quasi or implied contract exists where there is no written contract and actions, words and/or limited writings infer a contract of employment. An example of this would be if an employer suggested that an employee sell his/her home to move closer to work and that the employee can count on having his/her job. If the employee reasonably relies on these statements and incurs a detriment in such reliance, the employee would be entitled to due process relating to his/her employment. Without a written or implied contract, an employee may be terminated for any reason or no reason.
Gabrielle L. Strich, Esq.
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