Question

Prior to labor unions, both the employer and employee had the legal right to terminate an employment

Answer 1

Before the times of the labor unions, both the employer and the employee reserved the right of employment at will, meaning either one could terminate the agreement at any time and for any reason.

The correct term for the situation proposed in the question is employment at will. The other options describe agreements that have arisen since the creation of the labor unions.

The first option, a closed shop, described an agreement made between the hiring party and the labor unions in which the hiring party agrees to only hire members of the union, while an open shop is just the opposite.

Collective bargaining, on the other hand, is the long process in which the workers of an institution work through their labor unions in order to negotiate contracts and the terms of employment, which include income and benefits.

Therefore the only option that existed prior to the development of labor unions is employment at will, which allowed the termination of a contract at any time for any reason.

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