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How employment contracts affect wrongful termination claims

On Behalf of | Sep 26, 2024 | Wrongful Termination

Wrongful termination occurs when an employer unlawfully fires an employee. Employment contracts play a key role in determining whether a termination is legal. Knowing how these contracts affect wrongful termination claims is important for employees.

The role of employment contracts

Employment contracts outline the terms of the working relationship. This includes conditions for termination. California follows an “at-will” employment model. This allows employers to terminate workers for any legal reason. 

California Labor Code Section 2922 follows at-will employment rules. However, contracts can limit these rules by setting specific conditions for termination. When an employer ignores those terms, the employee can file a wrongful termination claim.

Exceptions to at-will employment

A contract that allows firing for “just cause” means the employer must explain why they let the employee go. If the employer cannot provide a valid reason, they violate the contract terms. In that case, the employee may have grounds to sue for wrongful termination. Promises made in employee handbooks or implied agreements can influence these claims. Employees who understand their contract rights are better positioned to challenge unfair dismissals.

Legal protections

California employment law provides protections that extend beyond contract terms. Employees cannot be terminated for discriminatory reasons. This includes retaliation for reporting illegal activities or for exercising legal rights. 

California’s Fair Employment and Housing Act (FEHA) protects employees from wrongful termination. It specifically covers cases involving discrimination or retaliation. These legal safeguards apply regardless of whether an employee has a contract. It can help strengthen wrongful termination claims.

Navigating wrongful termination

California employees have protections against unfair dismissal. By understanding their contracts and state laws they can manage these situations. This knowledge helps them handle wrongful termination with confidence.

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