Small Business Glossary and Definitions

Wrongful termination is similar to unjustifiable dismissal. When a person is hired into a company, they enter into a legal agreement wherein both parties have a responsibility to follow certain rules. If that contract is breached by an employer, and the worker is let go for reasons outside of the contract, the worker may bring a wrongful termination suit against his or her previous employer. Examples of wrongful termination can include discrimination, retaliation, or not following the termination processes outlined in the employee handbook. For example, if an employee is fired for an act that only constitutes a write up or formal warning, they may be entitled to a wrongful termination suit.