Omar Bennett
Wrongful termination, also known as wrongful dismissal or wrongful discharge, occurs when an employee is fired in violation of their contract, company policy, or employment law. While the specific laws vary by country and state, wrongful termination generally involves a breach of contract, discrimination, retaliation, or a violation of public policy. For instance, an employer cannot terminate an employee based on protected characteristics such as race, gender, religion, or sexual orientation. Additionally, employees have the right to report illegal activities, unsafe work conditions, or unethical behaviour without fear of retaliation or termination. If an employee believes they have been wrongfully terminated, they may have legal recourse, such as filing a complaint with the Equal Employment Opportunity Commission (EEOC) or seeking legal counsel.
| Characteristics | Values |
|---|---|
| Retaliation | Reporting or refusing to perform an illegal act or safety violation |
| Reporting discrimination | Race, nationality, religion, sex, age, sexual orientation, gender identity |
| Violation of federal anti-discrimination laws | Race, gender, ethnic background, religion, disability |
| Violation of company discipline or termination policy | Failure to give warnings before termination |
| Violation of state labor law | Leave, wages, overtime |
| Breach of contract | Termination without cause |
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What You'll Learn
Discrimination
Federal laws such as the Civil Rights Act of 1964, the Americans with Disabilities Act of 1960, and the Age Discrimination in Employment Act of 1967 protect employees from discrimination based on these factors. Additionally, many states have their own civil rights laws that offer further protection, such as California's Fair Employment and Housing Act (FEHA). These laws ensure that employees cannot be terminated solely based on their protected characteristics.
If an employee believes they have been wrongfully terminated due to discrimination, they can take several steps to address the situation. Firstly, they should gather evidence and information regarding their termination. This includes requesting a written notice of termination from their employer, obtaining their personnel file, and documenting any positive experiences and interactions prior to their firing. It is also important to be aware of the specific laws and policies in their state, as these may vary. For example, some states have unique protections, such as for service as an election officer or volunteer firefighter.
The next step is to file a formal complaint or charge of discrimination. In the United States, this is typically done through the Equal Employment Opportunity Commission (EEOC). The EEOC requires individuals to file a Charge of Discrimination, which is a signed statement asserting that an employer engaged in discriminatory practices. This charge must be filed before taking legal action, such as filing a lawsuit against the employer. The EEOC provides an online portal and interview process to help individuals assess their concerns and determine the appropriate course of action. It is recommended to hire an attorney to assist with the process and gather evidence to support the claim.
In addition to federal protections, many states have their own anti-discrimination laws and agencies, known as Fair Employment Practices Agencies (FEPAs). Filing a charge with a FEPA will automatically dual-file with the EEOC if federal laws apply. It is important to note that there are time limits for filing a charge, and the specific procedures may differ for federal employees and applicants.
Wrongful termination due to discrimination is a serious matter, and employees have legal recourse to seek compensation and hold employers accountable for their discriminatory practices. By understanding their rights, gathering evidence, and seeking legal assistance, employees can protect themselves from discriminatory termination and pursue justice if their rights have been violated.
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Retaliation
In the US, the Equal Employment Opportunity Commission (EEOC) investigates retaliation claims, which constituted 51.6% of all EEOC charges in 2022. The EEOC prohibits employers from punishing employees for asserting their rights to be free from discrimination, including harassment. This is known as "protected activity", and it can take many forms. For example, it is unlawful to retaliate against an employee for filing or being a witness in an EEO charge, complaint, investigation, or lawsuit, or for communicating with a supervisor or manager about employment discrimination.
Other examples of retaliation could include reprimanding an employee, giving them a lower performance evaluation than they deserve, transferring them to a less desirable position, threatening to report them to authorities, spreading false rumors about them, or making their work more difficult.
To prove a claim of retaliation, an employee must generally demonstrate that they witnessed or were a victim of harassment or discrimination, participated in a protected activity, and were punished as a result of that participation. Direct or circumstantial evidence can be used to support a claim of retaliation. For example, written or verbal statements may indicate that an employee was fired for engaging in a protected activity, or performance reviews may show that an employee's firing or punishment was a result of their participation in a protected activity.
If you believe you have been wrongfully terminated in retaliation for engaging in a protected activity, you can report your termination to your state's labor department or file a complaint with the EEOC.
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Breach of contract
A breach of contract occurs when an employer fails to abide by the terms of an employment contract. Employment contracts are legally binding agreements between employers and employees that outline the terms and conditions of employment, such as responsibilities, length of employment, compensation, and protections against termination. These contracts can be written, oral, or implied through the actions or statements of the parties involved.
A breach of contract can occur when an employer terminates an employee without just cause if the contract requires cause for termination. For example, if an employee is dismissed without any justifiable reason, despite the contract stating that employees can only be let go for cause, this can be considered a breach of contract. Additionally, an employer may breach the contract by failing to provide resources guaranteed by the contract, such as laboratory equipment or benefits.
In the case of a breach of contract, employees may seek legal advice and pursue a legal claim against their employer. They may be able to collect monetary damages for financial losses incurred due to the breach. However, it is important to note that the damages available for breach of contract cases may be more limited compared to other types of employment cases, such as discrimination or wrongful termination lawsuits.
It is also worth mentioning that not all employment contracts guarantee continued employment. For instance, at-will employment agreements allow employers to terminate employees at any time, for any reason that is not illegal, and employees can quit at any time as well. In such cases, claiming breach of contract upon termination may not be valid.
While each country and state may have its own definitions and laws regarding wrongful termination and breach of contract, it is generally considered a breach when an employer fails to uphold the significant promises and obligations outlined in the employment contract. Employees who suspect a breach of contract should seek legal counsel to understand their rights and options for recourse.
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Violation of public policy
Wrongful termination, or unlawful termination, is a tenant of employment law. Wrongful termination in violation of public policy (WDVPP) occurs when an employer terminates an employee for reasons that go against public policy interests. These interests include protecting the individual's rights or the general well-being of the community.
To make a claim for wrongful discharge in violation of public policy, a plaintiff (the terminated former employee) must show that a clear public policy existed and was manifested in some form of government law or regulation. The plaintiff must also demonstrate that their dismissal was motivated by conduct related to public policy and that the employer lacked overriding legitimate business justification for the dismissal. For example, an employee may be fired for filing a worker's compensation claim, refusing to commit fraud, missing work to vote in an election, or reporting their employer for using hazardous materials in their products.
Public policy is not codified in laws or statutes, but actions including wrongful termination can be considered illegal if they go against general principles of public policy. Common examples of employee terminations that would violate public policy include terminating an employee for exercising their legal rights, such as the right to vote, or for refusing to commit an illegal act, such as submitting a fraudulent company tax document. Another example is terminating an employee for reporting illegal misconduct by the company, also known as whistleblowing. Whistleblowers are legally protected against retaliation and termination in many jurisdictions.
In addition to whistleblowing, wrongful termination may also involve retaliatory discharge, which occurs when an employer terminates an employee who filed a complaint against the company. Employees are legally entitled to file claims against their employers without facing termination. Activities that may be protected include reporting harassment or discrimination in the workplace, leaving work for public policy reasons (e.g. jury duty), or filing a complaint with the Equal Opportunity Employment Commission (EEOC).
If an employee believes they have been wrongfully terminated in violation of public policy, they may be able to recover damages for their losses. They may also be able to require the employer to adjust their employment policies to prevent similar incidents from occurring in the future. However, it is important to note that public policy standards may vary by region and the nature of employment.
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Reporting or refusing to perform an illegal act
Wrongful termination occurs when an employee is dismissed for an illegal reason, such as discrimination, or when an employer does not follow their termination policies. In most countries, retaliation is grounds for wrongful termination. Reporting or refusing to perform an illegal act is a major aspect of employment law in many countries, particularly concerning wrongful dismissal.
An employee may be wrongfully dismissed if they are terminated for either speaking about illegal activities within their organisation or choosing not to engage in practices that they deem unlawful or unsafe. This is also known as "whistleblowing", and whistleblower laws exist to protect employees from retaliation for reporting employer misconduct or refusing to engage in illegal workplace activity. These laws vary, with some protecting employees who report illegal conduct internally, and others only protecting employees if they report to a government agency.
If an employee is disciplined or terminated for refusing to commit an illegal act, they may have grounds to sue their employer for wrongful termination, even if no law specifically protects whistleblowers in their field. This is known as "wrongful termination in violation of public policy". In this case, an employee may sue their employer for terminating their contract because they would not break the law or reported the company's illegal activity.
If you believe you have been wrongfully terminated, it is important to review your employment agreement and understand the conditions of your employment, including any specific provisions regarding termination. If you believe the terms were not followed, you may have a case for wrongful termination. It is also recommended to seek legal counsel to understand your rights and the best way to proceed.
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Frequently asked questions
Wrongful termination, also called wrongful discharge or illegal dismissal, is when an employee is fired in a manner that breaches their contract of employment, or a statute provision or rule in employment law.
Wrongful termination can occur when an employer fires an employee for an illegal reason, such as discrimination based on race, gender, ethnic background, religion, sexual orientation, or disability. It can also include a violation of federal anti-discrimination laws or a contractual breach.
Examples of wrongful termination include:
- An employee is terminated for reporting sexual harassment or other illegal activities in the workplace.
- An employee is fired without following the company's discipline or termination policy, such as failing to provide a required number of warnings.
- An employer handles a termination in a way that constitutes bad faith.
If you believe you have been wrongfully terminated, you should seek legal counsel and consider filing a report with the relevant government body, such as the Equal Employment Opportunity Commission (EEOC) in the US.
Yes, it's important to note that not all unfair terminations are considered wrongful. For example, if an employee is let go due to performance issues or company downsizing, it may still be valid as long as the employer followed the correct legal process and did not breach the employee's contract.
