Wrongful dismissal

Wrongful dismissal, also called wrongful termination or wrongful discharge, is a legal phrase, describing a situation in which an employee's contract of employment has been terminated by the employer if the termination breaches one or more terms of the contract of employment, or a statute provision in employment law. It follows that the scope for wrongful dismissal varies according to the terms of the employment contract, and varies by jurisdiction. The absence of a formal contract of employment does not preclude wrongful dismissal in jurisdictions in which a de facto contract is taken to exist by virtue of the employment relationship. Terms of such a contract may include obligations and rights outlined in an employee handbook. Being terminated for any of the items listed below may constitute wrongful termination:

Wrongful dismissal will tend to arise first as a claim by the employee so dismissed. Many jurisdictions provide tribunals or courts which will hear actions for wrongful dismissal. A proven wrongful dismissal will tend to lead to two main remedies: reinstatement of the dismissed employee and/or monetary compensation for the wrongfully dismissed.

A related situation is constructive dismissal in which an employee feels no choice but to resign from employment for reasons imposed by the employer.

One way to avoid potential liability for wrongful dismissal is to institute an employment probation period after which a new employee is automatically terminated unless there is sufficient justification not to do so. The dismissed employee may still assert a claim, but proof will be more difficult, as the employer may have broad discretion with retaining such a temporary employee.

In the United States, there is no single “wrongful termination” law. Rather there are several state and federal laws and court decisions that define this concept. Employers typically designate their employees to be "employees at will." Even in these cases, however, it is usually deemed a "wrongful termination" to dismiss an employee on a legally prohibited basis. In the United States, wrongful dismissal has become the most common labor claim.

In California if a termination was based on your membership in a group protected from discrimination by law, it would not be legal. An employer may not discriminate or terminate a person because of race, religion, national origin, gender, sexual orientation, disability, medical condition, pregnancy, or age, pursuant to the California’s Fair Employment and Housing Act (FEHA) and Title VII of the Civil Rights Act of 1964.

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