Baxter, at age 45, was hired as the general manager of the CountrySide Shipping Company by Carrothers, the company president. The initial contract of employment was for a three-year term and was embodied in an exchange of letters between Baxter and Carrothers in 2008. At the end of the three-year term, Baxter continued on as general manager, receiving annual increases in salary, executive profit sharing, pension contributions, and discretionary bonuses, if business was exceptionally good in a given year. In January 2020, for no apparent reason, Carrothers called Baxter into his office, and told him his services were no longer required. Carrothers offered Baxter a week's salary as "severance pay." At the time of termination, Baxter was earning a salary of $70,000 per year, received company paid pension contributions of $5,000 annually, and, in 2019, had received $3,000 from profits shared, and a $5,000 bonus. At Common Law, Carrothers is required to give Baxter reasonable notice of termination.

Question

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At Common Law, an employer is required to give an employee reasonable notice of termination unless there is a contract specifying otherwise or the termination is for cause. Since Baxter's initial contract did not specify the terms of termination and he was terminated without cause, Carrothers is required to give him reasonable notice or pay in lieu thereof.

Baxter, at Age 45, Was Hired as the General Manager