Under California state law, both illegal and unfair termination can have serious legal consequences for an employer. Although both terms may seem interchangeable, in reality, they refer to dismissals that occur under different circumstances.
A wrongful dismissal occurs when an employer dismisses an employee for a reason prohibited by law. In California, companies cannot fire their employees based on discrimination or retaliation for activities or belonging to a protected social class based on race, gender, religion, sexual orientation, or age. Employers also cannot fire an employee for engaging in protected activities, such as filing a workers’ compensation claim or whistleblowing.
Unfair dismissal, on the other hand, occurs when an employer violates the terms of the employment contract, whether written or verbal. California is an employment-at-will state, which means employers can generally fire employees for any legal reason. However, employers may not violate an employment contract or the implied good faith and fair dealing covenant. For example, an employer may be found guilty of unfair dismissal if he fires an employee for refusing to engage in illegal activities or in retaliation if the employee reports security breaches.
The key difference between illegal and unfair dismissal is the reason for the dismissal. While an illegal dismissal occurs when an employer fires an employee for a reason explicitly prohibited by law, an unfair dismissal occurs when an employer breaches an employment contract work or the implied consensus of good faith and fair dealing. In both cases, the employee may be entitled to compensation for damages if he manages to prove, through a lawsuit, that his dismissal is unjustified.
If you think that you have been the victim of an illegal or unfair termination in California, we encourage you to contact us today for a consultation to talk about your legal options. We are here to help you.