Legal Definitions - wrongful termination

Wrongful termination occurs when an employee is fired for an illegal reason, or in a manner that violates a contract they had with their employer.

Even in jurisdictions where employment is generally considered at-will (meaning an employer can typically terminate an employee for almost any reason, or no reason at all, as long as it's not illegal), a firing can still be deemed wrongful under specific circumstances. These circumstances generally fall into two main categories:

• Breach of Contract: This occurs when an employer violates the terms of an employment agreement. This could be a formal written contract that specifies reasons for termination (e.g., "for cause only"), or an implied contract, which might be established through promises made in an employee handbook, company policies, or verbal assurances that create an expectation of continued employment under certain conditions.
• Violation of Public Policy or Law: This category covers firings that go against established legal protections or fundamental societal principles. Examples include termination based on illegal discrimination (e.g., due to race, gender, age, religion, disability), retaliation for exercising a legal right (e.g., reporting workplace safety violations, whistleblowing about illegal company practices, taking protected medical leave), or firing an employee for refusing to engage in an illegal act.

Here are some examples to illustrate wrongful termination:

• Example 1: Retaliation for Whistleblowing

  An employee in a pharmaceutical company discovers that the company is deliberately mislabeling a drug to avoid stricter regulatory oversight. They report this illegal activity to the appropriate government agency. A week later, the company fires the employee, citing "poor performance" despite a history of excellent reviews. This could be a case of wrongful termination because the firing appears to be in retaliation for the employee's protected act of whistleblowing, which is illegal under various public policy laws designed to protect those who report corporate misconduct.

• Example 2: Discrimination Based on Protected Characteristics

  A highly successful sales manager, who has consistently met and exceeded targets for five years, informs her employer that she has been diagnosed with a serious medical condition that qualifies as a disability under federal law. She requests a reasonable accommodation, such as a modified work schedule for a few weeks to attend medical appointments. The company denies her request and fires her the following month, claiming a "restructuring" of the sales department, but does not fire any other sales managers. This could be a wrongful termination if the firing was motivated by her disability or her request for accommodation, violating anti-discrimination laws.

• Example 3: Breach of an Implied Contract from a Handbook

  A small business has an employee handbook that clearly states, "Employees will only be terminated for serious misconduct after a thorough investigation and a progressive disciplinary process involving a verbal warning, a written warning, and a final warning." An employee is suddenly fired without any prior warnings or investigation after a minor disagreement with a supervisor. Even though there wasn't a formal written employment contract, the employee handbook's explicit policy could be considered an implied contract. The company's failure to follow its own established disciplinary process before termination could constitute wrongful termination due to a breach of this implied agreement.