Is "At-will employment" common at MBB?

Question

I recently received an offer from an MBB firm, and one particular clause caught my attention: "At-will employment." This clause indicates that there is no probation period, and both the company and the employee can terminate the contract with one month’s notice, without needing to provide a reason.

This clause implies that the firm can terminate your employment at its discretion, without having to demonstrate that your performance is below expectations. This has raised concerns for me about job security.

Is this "at-will employment" clause common among MBB firms? From my research, it appears that at-will employment is quite common in the US. Since I am based outside the US, this is my first encounter with this term.

In practice, if an MBB firm decides to terminate your employment, is it standard for them to provide a transition period of several months, or, as the contract suggests, can they ask you to leave with just one month's notice without providing a specific reason?

Answer 1

Hi there,

First of all, congratulations on the offer!

I would be happy to share my thoughts on your question:

First of all, at-will employment is not common practice among consulting firms yet is used more and more in the United States.
Moreover, in practice, consulting firms are known for their supportive work environment, even when it comes to termination. It's rare for them to let go of employees without a considerable transition period, unless there are exceptional circumstances.
Lastly, I would advise you to discuss your concerns directly with your HR contact. They can provide specific details about how this policy is applied in your location and any additional support mechanisms they have in place for such situations.

You can find more on this topic here: Salaries in the consulting industry.

If you would like a more detailed discussion on your specific situation, please don't hesitate to contact me directly.

Best,

Hagen

Answer 2

Hi there,

It depends on the country and the local labor laws, but yes, it can happen.

It's a bit speculative without knowing the exact country, but it could be related to the current market and uncertainty.

What all firms want to avoid is to overhire in a potentially slow market. Hence, their hiring cycles are much longer now to account for that. Including at-will in the contracts would also give them more flexibility.

Definitely not a good thing! :-(

Usually, once you are asked to leave a firm, they provide support for a while - not sure this is the case with such a clause though.

All the best,

Florian

Answer 3

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