A major distinction is whether an employee is considered to be employed on a
"for cause" or "at-will" basis. Generally, a
"for cause" employment agreement allows the employer:
* To terminate the employee for any reason so long as they pay a negotiated severance.
* To terminate the employee for good cause reasons, so long as the employee is first given a warning notice when appropriate.
These agreements should only be used when negotiated for by the employee.
Source:
Employment Agreement (For Cause)