What Is Wrongful Termination?
Wrongful Termination refers to a situation where an employee’s contract of employment is ended by the employer in a way that violates statutory law, the written (or implied) employment agreement, company policy, or public-policy protections. In such cases the dismissal is considered illegal or invalid because it breaches legal rights or contractual obligations. This definition covers a range of circumstances where employers overstep legal or contractual boundaries, resulting in potential liability, reputational damage and legal consequences.
Why Wrongful Termination Matters for Employees and Organisations
Wrongful termination undermines trust, fairness and legitimacy of dismissal practices. For employees, it means loss of job under unjust conditions — which may involve discrimination, retaliation or breach of contract — leading to financial and personal distress. For organisations, such cases can result in legal claims, compensation costs, damage to employer brand, lowered morale and difficulties in attracting and retaining talent. Recognising wrongful termination is therefore essential for HR and leadership to ensure fair, lawful and ethical handling of dismissals.
Common Grounds and Examples of Wrongful Termination
Wrongful termination can take many forms depending on the laws, contract terms or employment policies in force. Below are frequent examples that may qualify a dismissal as wrongful:
- Termination based on discrimination — firing an employee because of protected characteristics such as race, gender, religion, age, disability, sexual orientation or other traits protected under anti-discrimination laws.
- Retaliatory dismissal — dismissing someone as punishment for exercising legally protected rights: for instance whistle-blowing, reporting harassment or refusing to engage in illegal acts.
- Breach of employment contract or handbook provisions — terminating employment without required notice, without following agreed procedures, or before a fixed-term contract ends without lawful cause.
- Violation of public policy or statutory rights — dismissal that infringes labour law protections, e.g. firing someone for taking legally protected leave or for complying with statutory obligations.
When organisations ensure termination processes are legally compliant, transparent and respectful of employee rights, they minimise the risk of wrongful termination claims — protecting both employees’ security and the company’s integrity. Such diligence supports fair employment practices, preserves trust in HR processes and contributes to a stable, ethical workplace environment.
