Just Cause Termination

The word itself gives an idea of the concept. Just Cause Termination is a termination where the employer terminates the employee for serious misconduct or any illegal motive by employees. 


As Carl Sandberg said, “Be careful how you use strong words.”  “Just cause” is a term that requires careful and specific articulation in the employment contract in order to have meaning and value in determining the employer’s rights and obligations in executive employment terminations.

Some common Allegations by employers for Just Cause

  • Serious misconduct like theft, unethical issues performed by the employee.
  • The probation period is not served according to the employer’s demand.
  • Not fulfilling the company workload or requirements as promised by the employee.
  • Repeated incompetency to complete the required work.
  • A combination of all issues mentioned.


Benefits of Just Cause for the Employer:

  1. An employer gets a benefit to punish the employee in this manner and termination gives a lesson to many as well. 
  2. An Employer is regardless of benefits for the company’s main and proper rule adherence. 
  3. He/She is able to justify the work which was delayed or gone not good due to this action
  4. Profit to the company as saving unnecessary manpower in use and wages too. 
  5. Through this action, there is a chain of disciplines attached to it. And the respective employees maintain the same.

If somewhere or the other the employee succeeds in disclaiming or proving the employer wrong then the organization has to pay a hefty amount of negotiations too for the disclaim.

Hence we have to be very sure and we need to reassure the claim of the employee.  

Some instances of Just Cause Termination affect the employer:

Example: In one of the countries the employer gave just cause to an employee stating that he has done fraudulent activities by claiming false expenses and taking money from the company. 

Whereas in this case, the employee proved that he claimed false expenses to actually reimburse the actual amount of the expenses he had done earlier. Though this went wrong the employer had to give compensation of 7 months of double pay to the employee.

In the other instance, an employer claimed serious misconduct claiming that the employee had made an unethical rule-abiding by drinking and going out to party with the client and giving all the information but on the other side the employee proved that the client was his 11-year-old friend. This resulted in the employer paying a good sum amount of $270 million dollars.

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