When a person gets terminated for cause in Texas, it means that they get dismissed for what is considered a satisfactory reason. This could include the disclosure of confidential information, fraud or misconduct. The word “cause” in this context defines the reason why a person gets fired.
Understanding termination with cause
An employer possesses the authority to terminate an employee in different manners, including termination without cause, termination with cause or termination at will. When the term “termination with cause” is employed, it indicates that the employee has taken actions violating company policies. Rather than being deemed wrongful termination, termination for cause implies that the employee’s actions potentially had severe consequences for the company, fellow employees or clients.
Factors leading to termination
An employer may terminate an employee’s services with cause due to consistent underperformance. The employee’s behavior may violate the company’s code of conduct, which can involve problematic interactions with fellow employees and managers. It may also encompass negative interactions between employees and the company’s clients.
When issuing a termination letter, the employer should explicitly state the reasons for the employee’s termination. If an employee is dismissed without reason, the termination will be considered to be without cause.
Termination without cause
Every termination of an employee is accompanied by a cause, even in cases where the termination gets labeled as “without cause.” For instance, a company may opt to restructure or downsize its operations, which is a reason for the termination. Employers are not legally obligated to provide advance notice or post-termination compensation in cases of termination with cause. However, in situations of termination without cause, it is customary for employers to either give employees a notice period or provide them with the equivalent amount of money they would have earned during that period.
Getting fired from a job is never a pleasant experience. Nonetheless, understanding the distinction between termination with cause and termination without cause can assist individuals who get terminated in making informed decisions for their future.