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Wrongful dismissal

In law, wrongful dismissal, also called wrongful termination or wrongful discharge, is a situation in which an employee's contract of employment has been terminated by the employer, where the termination breaches one or more terms of the contract of employment, or a statute provision or rule in employment law. Laws governing wrongful dismissal vary according to the terms of the employment contract, as well as under the laws and public policies of the jurisdiction.

A related concept is constructive dismissal in which an employee feels no choice but to resign from employment for reasons that result from the employer's violation of the employee's legal rights.

Discrimination: The employer cannot terminate employment because the employee is a certain race, nationality, religion, sex, age, or (in some jurisdictions) sexual orientation.

Retaliation: An employer cannot fire an employee because the employee filed a claim of discrimination or is participating in an investigation for discrimination. In the US, this "retaliation" is forbidden under civil rights law.

Reporting a Violation of Law to Government Authorities: also known as a law, an employee who falls under whistleblower protections may not lawfully be fired for reporting an employer's legal violation or for similar activity that is protected by the law.

whistleblower

Employee's refusal to commit an illegal act: An employer is not permitted to fire an employee because the employee refuses to commit an act that is illegal.

Employer is not following the company's own termination procedures: In some cases, an employee handbook, company policy, or outlines the procedure that must be followed before an employee is terminated. If the employer fires an employee without following required procedure, the employee may have a claim for wrongful termination.

collective bargaining agreement

Being terminated for any of the items listed below may constitute wrongful termination:


The absence of a formal contract of employment does not preclude wrongful dismissal in jurisdictions in which a de facto contract is taken to exist by virtue of the employment relationship. Terms of such a contract may include obligations and rights outlined in an employee handbook.


Many jurisdictions provide tribunals or courts that hear actions for wrongful dismissal. Although available remedies are dependent upon the type of claim and the laws of the jurisdiction, potential remedies for a proved wrongful dismissal include:

Probationary employees[edit]

One way to avoid potential liability for wrongful dismissal with newer employees is to institute an employment probation period after which a new employee is automatically terminated unless there is sufficient justification not to do so. The dismissed employee may still assert a claim, but proof will be more difficult, as the employer may have broad discretion with retaining such a temporary employee.

Working notice

Pay in lieu of notice

Constructive dismissal

Unfair dismissal

Severance package