12.2.1 Termination in Violation of a Written Contract.

• Jurisdiction: Arizona

12.2.1 Termination in Violation of a Written Contract. As a result of the enactment of the AEPA, an employee can no longer bring a common law claim for breach of contract independent of the AEPA.⁸ Arizona courts no longer focus on whether an employment agreement is enforceable at common law, but instead focus on whether the employment agreement satisfies the statutory requirements of the AEPA.⁹

To assert a wrongful termination claim based upon a violation of written contract, the contract must be signed by both the employer and employee. The contract must provide that the employment relationship shall remain in effect for a specified duration of time or the contract must otherwise expressly restrict the right of either party to terminate the employment relationship.¹⁰ Absent special circumstances, an employment contract that specifies a particular salary per week, month, or year only creates an indefinite, not a specific, term of employment.¹¹ Consequently, such an employment contract does not constitute a contract with a specified duration and would not create liability under the AEPA.

Alternatively, rather than an express written contract, an employee can rely on an employment handbook that also sets forth such terms of employment.¹² The employment handbook must...