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Wrongful Termination
Workforce & Future of Work

Wrongful Termination

Definition

What is Wrongful Termination?

Wrongful Termination occurs when an employer fires an employee in violation of legal rights, employment contract terms, anti-discrimination laws, or public policy protections.

Featured snippet
Firing an employee in violation of legal rights, contract terms, or anti-discrimination laws.
In Practice

How Wrongful Termination works?

Wrongful termination occurs when an employer ends employment in violation of a legal protection or contractual obligation — including discrimination based on protected characteristics, retaliation for protected activities (whistleblowing, filing a workplace safety complaint, participating in a discrimination investigation), violation of an employment contract, and termination in violation of implied good faith covenants in jurisdictions recognizing them. In US at-will employment, the category is narrower than employees often believe: an employer can terminate for almost any reason or no stated reason, as long as the termination does not violate anti-discrimination laws, retaliation protections, public policy exceptions, or express contractual commitments. The most common HR compliance error that creates wrongful termination exposure is poor timing: terminating an employee shortly after they filed a complaint, took FMLA leave, or reported a safety violation creates a strong temporal proximity inference of retaliation that employers must be prepared to rebut with clear, documented non-retaliatory reasons.

By the numbers

Key Statistics

What the research says about employee engagement.

$200,000
Wrongful termination claims cost employers an average of $200,000 to $500,000 per resolved case in legal fees, settlement or judgment, and management time — with the highest-cost cases involving both discrimination and retaliation claims simultaneously filed against the same employer for the same termination event.
90 days
Temporal proximity — termination occurring within 0 to 90 days of a protected activity — is cited as the strongest circumstantial evidence of retaliation in wrongful termination litigation, with courts finding retaliation more likely when the interval is shorter even when employers offer alternative explanations.
65%
Organizations with documented performance management histories — written warnings, PIPs, coaching records — that predate any protected activity by the employee successfully defend wrongful termination claims at 65 percent higher rates than those presenting termination rationale that first appears in the termination documentation itself.
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Also known as

Synonyms and Translations

Other ways this term appears across industries and languages.

Synonyms
Wrongful Dismissal
Unlawful Termination
Unfair Dismissal
Illegal Firing
Translations
🇸🇦
Arabic
الفصل التعسفي
🇫🇷
French
Licenciement abusif
🇮🇳
Hindi
गलत समापन
🇵🇰
Urdu
غلط برطرفی
🇵🇭
Tagalog
Wrongful Termination
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People may ask

People May Ask

Common questions about employee engagement.

What is wrongful termination?
Wrongful termination occurs when an employer illegally dismisses an employee in breach of their employment contract, anti-discrimination laws, or statutory employment protections.
What are common examples of wrongful termination?
Firing someone for reporting discrimination, for taking protected leave, due to their religion or race, in breach of contract, or in retaliation for whistleblowing.
What is the difference between wrongful and unfair dismissal?
In the US, wrongful termination is a legal claim based on unlawful reasons. In the UK, unfair dismissal is a statutory claim based on procedural or substantive fairness standards.
What should an employee do if they believe they were wrongfully terminated?
They should document all relevant information, consult an employment attorney, file a claim with the EEOC if discrimination is involved, and observe applicable filing deadlines.
What can employees receive as remedies for wrongful termination?
Remedies may include reinstatement, back pay, compensatory damages, punitive damages in some cases, and reimbursement of legal fees depending on jurisdiction and circumstances.