

by Diana Wicks

When faced with the task of employee termination, employers risk the possibility of legal liability for a suit of wrongful dismissal. An employer must take careful consideration of the real reasons why he is terminating an employee. There is only a slight difference between “cause” and “just cause” -- the difference is largely one of legal definition. For-cause termination occurs when an employer terminates an employee at any time, without notice and for any cause, good or bad, or for no cause at all.


Just cause implies a fair and honest reason for terminating an employee, according to Duhaime's Legal Dictionary. Just cause for termination must not be trivial, random or unconnected to business goals. Just cause is applicable when an employee substantially deviates from legal regulations, such as company policies. For example, an employee is subject to just-cause termination by participating in corporate theft or indulging in workplace sexual harassment.

Employment at Will

Employment is generally on an “at will” basis, in the absence of a contract or a collective bargaining agreement. In an at-will employment situation, an employer may terminate employment at any time, without notice and for any cause, good or bad, or for no cause at all. In this scenario, the employee need not have deviated from any legal regulations to be fired; the employer may still terminate him for any cause as long as it is not motivated by discrimination.


Unlike for-cause termination, an employer must determine just cause. In proving just cause, an employer considers factors such as if an employee’s acts violate any policy, if a fair investigation was conducted to establish violation and whether the violation is considerably serious. An employer must apply only those policies known to the employee at the time of violation, such as those found in an employee handbook.

Employment Contract

The details of one’s employment contract may be found in an employee handbook, a supervisor handbook, employment manuals and/or workplace policies. If an employee deviates from his duties as stated in the contract, the employer may terminate his employment contract based on those provisions. Even under an implied employment contract, an employer may terminate an employee’s contract for a good or a bad cause.

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