The South Carolina Supreme Court issued two decisions late in 2021 that may impact employers' and co-workers' potential liability in litigation arising from an employee's discharge.

South Carolina Supreme Court Decision on Employment at Will

On December 1, 2021, the South Carolina Supreme Court decided Hall v. UBS, answering three certified questions in a lawsuit Hall filed against UBS and a UBS employee following his termination. UBS discharged Hall after an employee (Reid) reported him for inappropriate behavior. Hall's claims against UBS included one for breach of the implied covenant of good faith and fair dealing. His claims against Reid included one for tortious interference with contractual relations.

The Supreme Court answered the three certified questions, reaching the following legal conclusions:

• First, at-will employment is a contractual relationship. Prior to this, there had been some confusion among state appellate courts as to whether at-will employment is contractual. The Supreme Court held that, pursuant to general contract law, there is a contractual relationship when an employer offers to pay an employee to perform a service for a price and the employee performs that service. The Court also held, however, that this conclusion does not limit an employer's ability to terminate an employee for any legal reason without being held liable.
• Second, while there is a contractual relationship in at-will employment, termination of at-will employment cannot breach...

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