Without the written contract , the employer is at liberty to terminate Mary in accordance with the aforementioned doctrine but still subject to exceptions . Although the termination is viewed as legal under the law , the authorities have come up with exceptions in to safeguard the rights of employees and to prevent employers from abusing their right to terminate pursuant to the doctrine

In this case , there was an illegal termination of the services of Mary based on the exceptions . There was a breach of implied covenant of good faith or fair dealing in this situation . This breach of employment pertains to a scenario where there has been an implied agreement between the parties as to the employment of the employee which places the latter in a position wherein she cannot be discharged without cause . Mary was continuously employed by Little Lamb Company for a period of two years thereafter she was terminated for the reason that the company had to cut costs . But , when there was a need to reinstate Mary , the supervisor chose to hire his cousin instead of Mary . There is here an evident case of bad faith as to the termination of the services of Mary . There seems to be a suspicious reason for discharging the services of Mary and this was done to the prejudice of Mary 's rights . An implied contract can arise due to the oral or written assurances or procedures employed by the employer which was readily apparent in the acts of Little Lamb Company . In the case of Kmart Corporation v Ponsock , the Supreme Court held that the termination of Ponsock was done in bad faith since the company wanted to escape its obligation to pay the retirement benefits of the