Omar Bennett
Termination for cause is a term used to describe the firing of an employee for valid, legally classified reasons. While the specific definition of good cause varies by state, it generally refers to an employee's failure to perform their duties or engage in conduct that is detrimental to the employer's business or reputation. Examples of good cause for termination include fraud, incompetence, insubordination, harassment, and conduct that violates federal, state, or local laws. Employers must be able to prove that the employee's actions or behaviour breached the employment contract and justified termination.
| Characteristics | Values |
|---|---|
| Failure to perform duties | Failure to perform duties that a person of ordinary prudence in the industry would perform under similar circumstances |
| Insubordination | Failure to follow clear and reasonable orders from the employer |
| Violation of rules | Failure to follow reasonable rules set by the employer |
| Dishonesty | Being dishonest on the job or lying on a job application |
| Interference | Conduct that interferes with the employer's business |
| Incompetence | Failure to perform duties in a competent manner despite adequate training |
| Fraud | Fraud or embezzlement |
| Violation of law | Violation of federal, state, or local law |
| Harassment | Harassment of employees or customers |
| Substance abuse | Use of alcohol or drugs in the workplace |
| Weapons | Carrying weapons in the workplace |
| Safety violations | Failure to comply with safety rules or regulations |
| Theft | Guilty of theft in the workplace |
| Negligence | Neglectful of duty |
| Intoxication | Intoxication or influence of illicit drugs |
| Detrimental behaviour | Behaviour that is detrimental or harmful to the business |
| Downsizing | Workforce reductions or layoffs |
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What You'll Learn
Incompetence, including lack of productivity or poor quality of work
Signs of incompetence include work being submitted late, over budget, with errors, or requiring considerable help from others. It can also manifest as an unwillingness to work towards assigned goals, an inability to complete work assignments or correct errors in a timely manner, or a refusal to learn new tasks or skills.
To terminate an employee for incompetence, employers must follow certain precautionary measures and procedures to protect themselves legally. This includes providing clear performance expectations and giving employees ample opportunity to correct their behaviour and improve their performance through training and evaluation periods.
If an employer cannot provide proper justification and evidence for termination, they may face legal repercussions such as compensation for unfair dismissal. Therefore, it is important for employers to meticulously record all steps taken to address incompetence before considering termination.
In addition to incompetence, other valid reasons for termination of employment include insubordination, dishonesty, breaking company rules, attendance issues, theft, harassment, discrimination, physical violence or threats, and behaviour that is detrimental to the business or violates the law.
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Insubordination, including disobedience or breaking company rules
Insubordination, disobedience, or breaking company rules are often cited as reasons for termination. However, the definition of insubordination is broad and vague, and it can be mistaken for misbehaviour or arrogance. Therefore, it is essential to understand what constitutes insubordination and when it can be considered a valid reason for termination.
Insubordination is a deliberate act of defiance, disobedience, or refusal to follow a manager or employer's instructions, orders, or authority in a work-related context. According to the Society for Human Resources Management, insubordination has three key elements: the employer gives an order, the employee acknowledges the order, and the employee refuses to carry out the order. This refusal can be explicit or implicit through non-performance. Insubordination can be in the form of actions, words, or attitudes that display a lack of respect or compliance.
For insubordination to be considered a just cause for termination, certain conditions must be met. Firstly, the employee's conduct must be willful or intentional, characterised by a wrongful and perverse attitude. Secondly, the order that was violated must be based on a reasonable and lawful company rule, regulation, or policy. This policy should be communicated to the employee and should pertain to the duties for which they were hired.
Examples of insubordination include refusing to perform a task, altering company budgets without permission, sending emails stating refusal to report to a supervisor, and refusing to deliver essential materials. Verbal insubordination can also occur, such as using disrespectful or offensive language towards a manager or coworker, challenging authority, or undermining the established chain of command.
When dealing with insubordination, employers can take various actions, including disciplinary measures or termination. Having a concise policy in place to address insubordination is beneficial, as it demonstrates that management is in charge and sets clear expectations for employees. Employers must also ensure that they can prove that the employee's behaviour was detrimental to the business and that they acted appropriately in the termination process.
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Fraud, theft, or embezzlement
Fraud, theft, and embezzlement are serious offences that can constitute good cause for termination of employment. Embezzlement is a type of theft that occurs when an employee who has been entrusted with company money or property fraudulently takes or misdirects it for personal gain. This differs from standard theft crimes as it involves a breach of trust and often larger sums of money.
In most states, employees work at will and can be terminated for any reason that does not violate state or federal law. However, employers must be able to prove that the employee's behaviour was detrimental to the business and provide a fair and honest reason for termination. In the case of fraud, theft, or embezzlement, employers must be able to show evidence of the misconduct, as the burden of proof lies with them.
There are various warning signs that employers should be vigilant about to detect potential fraud or embezzlement by employees. These include employees living beyond their means, having financial difficulties, exhibiting excessive control issues, and having unusually close relationships with vendors. Other red flags are employees who refuse to take vacations, work excessive overtime, or want to take work home.
Employers should also be aware of common schemes used by employees to embezzle funds. These include creating fake vendor payments, taking kickbacks from vendors, skimming from fundraisers, customer credit card fraud, and padding expense reports. Embezzlement can also take the form of selling trade secrets or company information to competitors.
In summary, fraud, theft, or embezzlement by employees is a serious issue that can result in termination for good cause. Employers must be vigilant in detecting and preventing such activities and should have procedures in place to investigate and address any suspected misconduct. By doing so, they can protect their business interests and ensure the security of their assets.
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Harassment or discrimination
Harassment becomes unlawful when enduring the offensive conduct becomes a condition of continued employment, or when the conduct is severe or pervasive enough to create an intimidating, hostile, or abusive work environment. This can include offensive jokes, slurs, physical assaults, intimidation, insults, or interference with work performance. Workplace harassment can be committed by supervisors or non-supervisory employees, and employers have a responsibility to protect their employees from harassment and correct any harassing behaviour. If an employee is found to be harassing others, they may face consequences such as warnings, counselling, transfer, suspension, or termination.
Discrimination in the workplace is also illegal and can lead to termination of employment. It is important to note that discrimination charges must be filed within a certain time frame and investigated by the Equal Employment Opportunity Commission (EEOC). Discrimination can take many forms, including gender-based discrimination, in which conduct is based on the gender of the individual rather than being explicitly sexual in nature. For example, a manager telling female employees "they belong at home" would be considered harassment based on sex.
In the case of termination due to harassment or discrimination, it is crucial to document the termination process thoroughly, including evidence of the misconduct. A letter of termination should be written, listing the behaviour and reasons for firing, and a copy should be kept for records. This will serve as valuable evidence if the need to prove the validity of the termination arises.
Overall, harassment and discrimination are serious issues that can have significant consequences, including termination of employment. Employers must take steps to prevent and correct such behaviour, and employees should feel empowered to report any instances of harassment or discrimination to their designated company contacts or external organisations such as the EEOC.
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Damage to the employer's business, reputation, or customers
In most states, employees work
Other examples of conduct that can damage the employer's business, reputation, or customers and lead to termination include fraud or embezzlement, violation of laws or company policies, harassment of employees or customers, use of alcohol or drugs in the workplace, carrying weapons in the workplace, and failure to comply with safety rules or regulations.
In addition, conduct that interferes with the employer's business, such as incompetence, insubordination, failure to follow orders or company rules, dishonesty, or conduct towards fellow employees, can also constitute good cause for termination. It is important to note that the misconduct must be severe enough to completely undermine the employment relationship and that employers must provide sufficient warnings and progressive discipline in most cases.
To establish good cause, employers should document the termination process well, including evidence of the misconduct, and write a letter of termination listing the behavior and reasons for firing. This will help protect the employer in case the former employee takes legal action.
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Frequently asked questions
Good cause for termination can include fraud, embezzlement, violation of federal, state, or local law, harassment, use of alcohol or drugs in the workplace, carrying weapons in the workplace, or failure to comply with safety rules or regulations. However, the definition of "good cause" can vary depending on the state and industry, so it is important to refer to specific laws and regulations.
In most states, employees work "at-will," which means they can be fired at any time, with or without notice, and for any reason that does not violate state or federal law. Termination for "good cause" requires the employer to demonstrate that the employee's behavior was detrimental to the business or that they breached the employment contract.
Examples of behavior that could lead to termination for "good cause" include insubordination, dishonesty, incompetence, neglect of duty, persistent intoxication or drug use, and failure to follow company rules or policies.
Yes, workforce reductions or layoffs can be considered "good cause" for termination, even during protected leave, as long as they are driven by legitimate downsizing needs and not intended to discriminate against specific employees.
If an employer fails to provide sufficient evidence of "good cause," the termination may be considered wrongful dismissal or bad faith. The employer may be liable for damages, including unemployment benefits or compensation similar to the value of reasonable notice.
