Fairness and Implied Contract Obligations in Job Terminations: The Role of Remedies, Social Accounts, and the Procedural Justice

Using a policy-capturing methodology, 121 respondents assessed the impact of seniority, formal commitments of long-term employment, severance, rea- sons for termination, and procedural justice factors (Participation and Notice) on termination fairness and implied contract obligations. Results indicate that seniority and formal commitments give rise to obligations to re- tain terminated employees, whereas severance and advance notice can miti- gate these obligations. Termination fairness is broadly impacted by management practices with formal commitment, reasons for termination, severance, and procedural justice factors all influencing fairness judgments. In contrast, however, seniority was unrelated to termination fairness. A model is proposed to describe how management practices, especially those relevant to procedural justice, impact implied contract fulfillment.