Human Resources Certification Institute (HRCI) Practice Exam

Which of the following HR docs run the risk of creating an implied employment contract?

1. Job offers

2. Job descriptions

3. Performance reviews

4. All of the above

The correct answer is: All of the above

An implied employment contract can arise when certain documents or communications suggest that an employee has more job security or certain rights than what is formally stated in a company's policies. This concept indicates that even if a written contract doesn't exist, the expectations created by various HR documents can imply a binding agreement. Job offers are often the first formal interaction that sets the tone for the employment relationship. If a job offer includes specific terms about the duration of employment, conditions under which the employment can be terminated, or other assurances, it may create an implied understanding that the employment is not "at will" and instead is governed by those terms. Job descriptions can also contribute to this risk. They outline the responsibilities and expectations of the role. If a job description includes promises of future employment stability or a roadmap for promotions that are not clearly stated as "subject to change," those could be interpreted as commitments that imply an employment contract. Performance reviews, which evaluate an employee's work and sometimes include discussions about future employment or assurances regarding job performance factors, can further carry implications. If a performance review suggests continued employment or rewards for steady or good performance without making clear statements about the at-will nature of employment, it could operate similarly. Therefore, because all these documents—job offers,