A wrongful employee termination occurs when an employer dismisses an employee in a manner that violates legal protections, contractual agreements, or established public policy. Although many workplaces operate under at-will employment (see next section), meaning employers may terminate employees for any lawful reason, termination becomes wrongful when it is based on illegal factors or when proper procedures are not followed.

Common examples of wrongful termination include firing an employee due to discrimination based on protected characteristics such as race, gender, age, disability, religion, or other legally protected statuses. It may also occur when an employee is terminated in retaliation for engaging in protected activities, such as reporting harassment, filing a complaint, participating in an investigation, requesting medical leave, or acting as a whistleblower. Additionally, termination can be considered wrongful if it violates an employment contract, collective bargaining agreement, or the organization’s own policies and procedures.

Wrongful termination can have significant consequences for both the employee and the employer. Employees may experience financial hardship, emotional distress, and damage to their professional reputation. Employers may face legal claims, financial penalties, reputational harm, and decreased employee morale. These cases often require careful documentation, investigation, and review of applicable laws and policies.

Wrongful employee termination refers to a dismissal that breaches legal rights, contractual obligations, or public policy standards. Preventing wrongful termination requires employers to apply consistent practices, maintain clear documentation, follow established procedures, and ensure employment decisions are based on legitimate business reasons. This is where HR can provide reviews before a potential wrongful termination.

At-will

At-will employment is a legal doctrine that allows either an employer or an employee to end the employment relationship at any time, for any lawful reason, or for no stated reason, and without advance notice. This arrangement is the default employment relationship in most states across the United States unless there is a specific employment contract, collective bargaining agreement, or policy that states otherwise.

Under at-will employment, employers have flexibility to make staffing decisions based on business needs, performance, restructuring, or organizational changes. Likewise, employees may leave a job at any time without being legally required to provide notice, although professional courtesy often encourages advance notice.

However, at-will employment is not unlimited. Employers may not terminate employees for illegal reasons, such as discrimination based on protected characteristics, retaliation for engaging in protected activities (for example reporting misconduct or requesting protected leave), or actions that violate public policy, such as firing an employee for serving on a jury or reporting safety violations. Additionally, written contracts, implied promises, or employer policies may create exceptions to at-will employment.

At-will employment provides flexibility for both employers and employees while still requiring that termination decisions comply with employment laws, contractual obligations, and organizational policies.

Case Scenario

An employee was on approved medical leave with doctor notes to substantiate. After having been on leave twice within a few months and then a long-period medical leave the third time, the company terminated her because they could “no longer accommodate” her leave. The company was not paying her while she was on leave. The company never advertise to replace the employee.

Does she have any legal recourse?