Legal Definitions - wrongful discharge

Wrongful discharge occurs when an employee is terminated from their job for reasons that are unlawful, violate the terms of an employment contract, or go against established public policy. Essentially, it means an employer's decision to fire an employee was not legally permissible.

Here are some examples to illustrate this concept:

• Example 1: Retaliation for Reporting Unsafe Conditions

  A factory worker notices several critical safety violations on the production line that could lead to serious injury. Following company protocol, they report these issues to their supervisor and then to the Occupational Safety and Health Administration (OSHA) after no action is taken. A week later, the worker is fired, with the company citing "poor performance" despite a previously clean record.

  This situation illustrates wrongful discharge because the worker was terminated in retaliation for reporting safety violations, which is an activity protected by law and public policy designed to ensure workplace safety. Firing an employee for exercising such a right is illegal.

• Example 2: Discrimination Based on Age

  A 58-year-old marketing director, who has consistently met or exceeded performance targets for over 15 years, is suddenly dismissed and replaced by a 28-year-old with less experience. The company claims they are "looking for fresh perspectives," but the director suspects age was the real factor, especially since several other older employees have also been let go recently.

  This is an example of wrongful discharge if the termination was primarily motivated by the employee's age. Federal and state laws prohibit discrimination in employment based on age, making such a dismissal illegal.

• Example 3: Breach of an Employment Contract

  A software engineer signs a two-year employment contract that specifies they can only be terminated for "gross negligence" or "willful misconduct" and requires a minimum of 60 days' written notice. Eight months into the contract, the company decides to downsize and fires the engineer immediately, offering only two weeks' severance pay, even though there was no evidence of negligence or misconduct.

  This constitutes wrongful discharge because the company violated the explicit terms of the employment contract regarding the permissible reasons for termination and the required notice period. The dismissal did not adhere to the agreed-upon contractual obligations.