Sabetay v. Sterling Drug - 69 N.Y.2d 329, 514 N.Y.S.2d 209, 506 N.E.2d 919 (1987)

Rule:

Absent an agreement establishing a fixed duration, an employment relationship is presumed to be a hiring at will, terminable at any time by either party.

Facts:

Plaintiff employee asserted he was wrongfully discharged from employment because he refused to participate in certain improper, unethical and illegal activities, and because he "blew the whistle" on these alleged activities. He was employed by a division of the defendant corporation without a written contract, and alleged that his dismissal was in violation of two contractual obligations: the first arising from the "Corporate Employee Relations Policy" manual and the second arising from Sterling's Code of Corporate Conduct and Internal Control Guide (together referred to as the "Accounting Code"). The district court dismissed plaintiff’s claims. Plaintiff sought review of the judgment. 

Issue:

Did the plaintiff state a cause of action by alleging that a statement in a corporate personnel policy manual created an enforceable contractual promise not to terminate him on any ground not mentioned in the manual, or by alleging that various corporate accounting policies constituted an employment agreement precluding plaintiff's termination for refusing to participate in allegedly improper activities? 

Answer:

No.

Conclusion:

On appeal, the court affirmed the dismissal and held that the employee failed to demonstrate a limitation by express agreement on his employer's unfettered right to terminate at will. The court rejected the employee's argument that the employer's written policies, coupled with a statement on the employment application that all its employees were to comply with company rules and regulations, created an implied agreement not to dismiss an employee for activity in accordance with those very policies.