Fairness and implied contract obligations in job terminations: The role of contributions, promises, and performance

Abstract

Abstract Using the methodology of policy capturing, this research identifies the role that performance, time on the job, commitment of long‐term employment and employability play in judgment of termination fairness and employer obligations. Previous research (Rousseau and Anton, 1988) found that seniority and past commitments of long‐term employment contributed significantly to judgments of termination fairness and obligation. The present study considered these variables along with performance (past, present and future potential) using 116 participants in human resource management courses. Results indicated that present performance, time on the job, and commitments affect judgments regarding termination fairness and obligation. Past and future performance, however, had no impact on these judgments. Implications of the findings for understanding employer and employee obligations are discussed.