You inform one of your employees that you’re going to terminate them and that Friday will be their last day of work. The employee, however, is surprised and frustrated. They claim there’s no reason for the termination. They haven’t made any mistakes, and they’ve done their job exactly as described. They believe it would be wrongful termination if you fire them.
So, do you actually need a reason to let the employee go, or are you allowed to fire them for no reason at all?
You can’t use an illegal reason
As a general rule, most employees are at-will employees. This means you don’t need a specific reason to fire them. The key is to avoid using an illegal reason for termination, such as:
- Age
- Race
- Religion
- Gender
- Disability
- Pregnancy status
- National origin
Essentially, if it appears the reason for termination is discriminatory, then it could be illegal. You can’t fire someone because of their religion, for example, or simply because they become pregnant.
But as long as your reason isn’t discriminatory in nature, the employee doesn’t have to think it’s fair. You can fire them for any other reason – or for no reason at all.
Do they have an employment contract?
One exception to this rule is if the employee has a contract. The contract may specify that they can only be fired for cause and may list reasons for termination. If the employee has a contract, then they are not an at-will employee, and you must abide by the terms in the contract.
What if a dispute arises?
Disputes over wrongful termination or contract violations are fairly common. If you and your business are involved in one, be sure you understand the legal steps to take.
