Master and Servant

The general rule is that a master may hire and fire servants; however, this is limited to a certain extent by the law. An employee cannot be discharged for a reason not permitted by his or her employment contract or the collective bargaining agreement that may govern the employment; nor can the person be fired because of race, color, religion, sex, or national origin. In addition, an employer cannot fire an employee who is exercising certain rights, such as filing a discrimination complaint with a governmental agency or filing for worker's compensation benefits.

An employee can be discharged for misappropriating funds, being unfaithful to his or her employer's interest, refusing to perform services that were agreed upon in a contract, or for being habitually late or absent. An employee cannot be fired for insubordination for refusing to subscribe to unlawful directives from his or her employer, nor can the employee be required to perform such illegal tasks as committing perjury or handling stolen property. A suit for damages may be brought against an employer who wrongfully discharges an employee.

An employee has the obligation to be honest and faithful in the performance of duties. When trade secrets are disclosed to an employee, he or she must not reveal them to others either prior or subsequent to employment. In some cases, an employment contract specifies that the employer owns any new ideas or inventions created by the employee during the period of employment. When this is true, the employee has no rights in the idea or invention nor any right to ask for additional compensation.