What Counts as Wrongful Termination? Definition, Examples, and Employee Rights

Losing a job is stressful. But not every firing is legal. In some cases, being dismissed from work may qualify as wrongful termination. Understanding what counts as wrongful termination helps you know your rights and decide whether legal action is possible.

This guide explains wrongful termination in simple terms, with real examples and warning signs to watch for.

What Is Wrongful Termination?

Wrongful termination happens when an employer fires an employee for an illegal reason or in violation of employment laws, contracts, or protected rights.

Even in places with “at-will employment” (where employers can fire workers anytime), termination cannot be based on discrimination, retaliation, or other unlawful grounds.

Common Examples of Wrongful Termination

1. Discrimination-Based Firing

It is illegal to fire someone because of protected characteristics such as:

• Race or ethnicity

• Religion

• Gender or pregnancy

• Disability

• Age (in many jurisdictions)

• National origin

Example:
An employee is dismissed shortly after revealing a medical disability.

2. Retaliation for Reporting Misconduct

You cannot legally be fired for:

• Reporting workplace harassment

• Filing a discrimination complaint

• Reporting safety violations

• Acting as a whistleblower

Example:
A worker reports unpaid overtime violations and gets fired weeks later.

3. Breach of Employment Contract

If you have a written or implied employment contract stating:

• Guaranteed employment period

• Required disciplinary steps

• Termination only for specific causes

…and the employer ignores these terms, the firing may be wrongful.

4. Firing for Taking Protected Leave

Termination may be illegal if it happens because you:

• Took medical leave

• Took maternity or paternity leave

• Took legally protected sick leave

• Served jury duty

• Completed military service

5. Constructive Dismissal (Forced Resignation)

Wrongful termination can also occur when working conditions become so unbearable that an employee is effectively forced to quit.

Examples include:

• Severe harassment

• Sudden major pay cuts without reason

• Unsafe work environment

• Demotion meant to push you out

What Does NOT Usually Count as Wrongful Termination

Many firings feel unfair but are still legal.

Examples:

• Personality conflicts with management

• Poor performance reviews

• Company downsizing

• Business restructuring

• Employer simply wanting a different employee

Unfair does not always mean illegal.

Signs Your Termination May Be Illegal

Watch for these red flags:

• You were fired shortly after filing a complaint

• Employer gave shifting or inconsistent reasons

• Your role was filled immediately despite “budget cuts”

• You were treated differently from similar coworkers

• You have written proof of discrimination or retaliation

Documentation matters a lot in these cases.

What To Do If You Think You Were Wrongfully Terminated

Step 1: Collect Evidence

Save:

• Emails

• Termination letters

• Performance reviews

• HR complaints

• Witness statements

Step 2: Review Your Employment Agreement

Check:

• Termination rules

• Notice requirements

• Severance terms

Step 3: Speak to an Employment Lawyer

Many lawyers offer free consultations and only charge if you win.

Final Thoughts

Wrongful termination occurs when a firing violates employment law, discrimination rules, or contractual protections. While employers often have broad authority to dismiss workers, that power has clear legal limits.

If something about your dismissal feels suspicious, trust that instinct and review your rights carefully. Acting early can protect your chances of compensation or reinstatement.

Read More:

Can you be fired for filing a complaint?

Signs your termination may be illegal

Can an employer fire you by text or email?

Can you sue your employer for unfair firing?

Is being forced to quit wrongful termination?