What Is a Just Cause Termination?
Just cause termination refers to the lawful termination of an employee’s contract due to serious misconduct or performance issues that violate company policies or employment agreements. Unlike terminations without cause, which can occur for reasons such as downsizing or restructuring, just-cause terminations require specific evidence of serious wrongdoing or incompetence. Examples include theft, fraud, harassment, insubordination, or consistently failing to meet job requirements despite warnings or opportunities for improvement. Just cause terminations typically result in immediate termination without severance pay and may impact the employee’s eligibility for unemployment benefits or future employment opportunities.
What Are Some Examples of Just Cause Termination?
Just cause termination refers to firing an employee for a serious reason that violates company policy, damages trust, or hinders the workplace. Here are some common examples:
- Misconduct: This can include severe offenses like theft, violence, harassment, discrimination, or insubordination. These actions directly threaten the safety and well-being of others and create a hostile work environment.
- Breach of Contract: If an employee violates a fundamental term of their employment contract, such as falsifying information on their application or failing to maintain a required license, it can be grounds for termination.
- Poor Performance: In some cases, consistently poor performance that doesn’t improve despite warnings or coaching can be just cause. This is especially true if the performance significantly impacts the company’s operations or safety.
- Illegal Activity: Criminal activity, particularly related to the employee’s job duties, can be a reason for termination. This shows a disregard for the law and potentially puts the company at risk.
- Substance Abuse: Being under the influence of drugs or alcohol on the job or failing a mandatory drug test can be grounds for termination. This can jeopardize safety and productivity.
- Serious Policy Violations: Repeatedly violating major company policies, especially those related to safety, security, or ethics, can be just cause. This demonstrates a lack of respect for the company’s rules and values.
Please note that just cause can vary depending on factors like the severity of the offense, company policies, and local employment laws. If you’re unsure whether something qualifies as just cause, consult an employment lawyer.
