Termination Without Cause vs. Wrongful Dismissals

Losing your job is never a fun experience, especially if you believe you have been let go for the wrong reasons. When it comes to employment law, a little knowledge can be powerful. California is an at-will state, meaning an employer can terminate you with or without cause.

However, employees have protections when their employer violates their rights through a wrongful dismissal. Here, we’ll explore the differences between termination with cause vs. without cause and when you need to contact the Los Angeles wrongful termination law firm for assistance.

Termination with Cause vs. Without Cause

When an employer decides to end a working relationship, it generally falls into two categories: terminations with and without cause.

What Is Termination with Cause?

Termination with cause happens when an employer dismisses an employee due to specific actions that violate company policy or their employment contract. For a termination to qualify as “with cause,” the employer provides valid reasons that are typically considered serious infractions. Common examples include:

  • Poor performance despite documented warnings;
  • Theft or fraud committed during employment;
  • Breach of company policies or codes of conduct; and
  • Engaging in illegal activity, such as harassment or violence at the workplace.

If you’re facing termination with cause, gathering evidence to defend yourself is essential. Employers must usually provide documentation to support their claim that the termination was warranted. As an employee, you can request access to performance reviews, emails, or other relevant documents that may help your case if you believe the termination is unjustified.

What Is Termination Without Cause?

Termination without cause occurs when an employer ends your employment for reasons unrelated to your performance or conduct. Common termination without cause examples include:

  • Company restructuring or downsizing,
  • Economic reasons,
  • Role redundancy due to technological changes, and
  • A shift in company direction.

Even though the employer can terminate without cause, they must provide notice or severance pay. You may have grounds for legal action if they fail to meet these obligations.

Key Differences: Termination with Cause vs. Without Cause

Understanding the difference between termination with cause vs. without cause is crucial for knowing your legal standing as an employee. When a termination occurs with cause, the employer bases the dismissal on the employee’s misconduct or failure to meet job requirements, such as violating company policies, theft, or poor performance. In these cases, employers are generally not required to provide severance pay or notice, as the dismissal is justified under California’s at-will employment laws.

On the other hand, termination without cause happens for reasons unrelated to the employee’s actions, such as company restructuring, downsizing, or economic factors. In such cases, employees are typically entitled to notice or severance pay, as outlined in their employment contract or by state laws like the California WARN Act for mass layoffs. Without cause terminations provide employees greater legal recourse to protect their rights, mainly when the employer denies severance or notice.

If an employer terminates you with cause, your ability to challenge the dismissal is more limited, especially if your employer has strong documentation supporting their decision. However, if you believe the termination was unjust or based on discriminatory reasons, you may still have legal options. Conversely, employees terminated without cause have greater leverage to challenge the dismissal, mainly if proper severance or notice was not provided, potentially leading to a wrongful dismissal claim.

What Is a Wrongful Dismissal?

A wrongful dismissal occurs when an employee is terminated in violation of their employment contract or statutory rights. Here are some common grounds for wrongful dismissal.

Discrimination

If you were fired based on a protected characteristic—such as race, gender, age, disability, or religion—you may have a case for wrongful dismissal under federal and state anti-discrimination laws.

Retaliation

If your employer fired you for reporting unsafe working conditions, filing a harassment complaint, or engaging in other protected activities, this could also constitute wrongful dismissal.

Violation of Employment Contract Terms

If your employer violated the terms of your employment contract, such as failing to provide proper notice or severance, you may have grounds to challenge the dismissal.

Employee Rights and Remedies

Employees terminated without cause have specific rights and protections under the law. You may be eligible to pursue legal remedies if your termination violated any of these rights.

  • Severance pay. You could be entitled to severance pay depending on your contract and the laws in your jurisdiction. Severance can be a lump sum or continued salary payments over a set period.
  • Notice. Employers are required to give advance notice of termination, often several weeks before the termination takes effect. The length of notice can vary by jurisdiction and the terms of your employment contract.
  • Damages for wrongful dismissal. You may be entitled to damages if your employer breached labor laws or employment contracts. These damages could include compensation for lost wages, benefits, and other financial losses caused by the wrongful dismissal.

Protecting Yourself After Termination

After being terminated, it’s essential to ensure your rights are protected. Review your employment contract or company policies to understand your entitlements, such as notice, severance, or benefits. This will clarify whether your employer met its obligations or if there was a potential breach of contract.

Next, gather all relevant documentation that could support your case. Keep any communications related to your termination, such as emails, performance reviews, and written notices. These records can help you build a strong case if your termination was wrongful or unlawful.

Consulting an experienced employment lawyer is crucial. An attorney can assess your case, explain your legal options, and represent your interests. Whether negotiating a fair severance package or filing a wrongful dismissal claim, a lawyer increases your chances of achieving a favorable outcome. 

An employment lawyer can help you navigate complex legal processes, advocate for your rights, and, if necessary, pursue compensation for lost wages and other damages.

Contact Bibiyan Law Firm

If you’ve been wrongfully dismissed or terminated without cause and are unsure of your rights, contact Bibiyan Law Firm. Our experienced employment lawyers are dedicated to helping employees like you navigate complex employment issues and fight for the compensation you deserve. Don’t wait—reach out today to schedule a consultation and take the first step toward protecting your future.

Author Photo

David Bibiyan, a top attorney at Tomorrow Law™, specializes in employment law, fiercely defending employees in cases of discrimination, harassment, wrongful termination, and wage issues. Known for his deep legal knowledge and dedication, he consistently secures favorable outcomes through skillful negotiation and litigation. His passion for justice drives his commitment to workers’ rights and fair employment practices.

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