![]() Of course, this may not work according to plan since the employee can dispute the reasons or only partially comply or other such complications. That is why it is common to see in a just cause provision notice and opportunity to cure provisions that will allow the employer to spell out the reasons for the termination and demand reasonable cure and, thereby, create a clear and objective record. But in situations that sound in dissatisfaction with the employee’s performance, disputable subjective elements can creep in. In extreme situations, such as conviction of a felony or misappropriation of funds, the definition can be set forth in a very straight-forward way. Some contracts simply use the term in an undefined manner and apparently rely upon, one would say charitably, the “common opinion of mankind.” Good luck enforcing that one in court.Ī well-drafted just cause provision in an employment contract lists the bases for termination in ways that are objectively definable. ![]() More senior executives require this protection. In the employment context, “just cause” is protection for the employer (who can avoid severance in a severe misconduct situation) and for the employee (who obtains severance unless there is demonstrable just cause). In the union context, “just cause” is a term of art that labor lawyers and labor arbitrators understand has a certain meaning, which can be very different from the meaning of “just cause” in an employment contract. If a union files a grievance over the termination of a union member, the employer typically has the burden to show “just cause” existed for the termination during a labor arbitration hearing. Most collective bargaining agreements require “just cause” for discipline and discharge. The meaning of “just cause” in an employment contract should be distinguished from the meaning of “just cause” in a union setting. In an employment contract with a just cause provision, the employer articulates the basis for the cause in order to terminate the contract without notice, and/or provide different, or reduced or no severance benefits. In a pure at-will employment situation, employers do not have to provide a reason for termination unless there is a request made by statute. It differentiates the basis for a termination from that of a reduction in force or simple exertion of at-will employment rights by requiring a reason for a termination. ![]() Usually, “just cause” is a provision in an employment contract. A very common such term in the termination context is “just cause” termination. Terms such as “at-will”, “contract”, “progressive discipline” and other common terms have meaning that many of us think we know, but when pressed may get a little vague. There are a lot of loose terms in the world of employment law. ![]()
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