Just cause: Overview, definition, and example
What is just cause?
Just cause refers to a legally valid or fair reason for taking a specific action, typically in the context of terminating an employee’s contract or making disciplinary decisions. It ensures that actions like termination are based on legitimate grounds, such as misconduct, poor performance, or violation of company policies, rather than arbitrary or discriminatory reasons.
For example, an employer might terminate an employee for just cause if they are caught stealing company property.
Why is just cause important?
Just cause is important because it protects both employers and employees. For employees, it ensures fairness and prevents wrongful termination or disciplinary actions without legitimate reasons. For employers, it provides a clear standard for taking corrective actions, reducing the risk of legal disputes and fostering trust in workplace policies.
In legal and contractual contexts, the concept of just cause often ensures that decisions are defensible and comply with labor laws or collective bargaining agreements. This is especially significant in jurisdictions or industries where employee rights are strongly protected.
Understanding just cause through an example
Imagine an employee repeatedly fails to meet performance standards despite receiving warnings and additional training. The employer terminates their employment for just cause, citing their inability to perform essential duties and the documented efforts to address the issue.
In another example, an employee violates a company’s harassment policy by engaging in inappropriate behavior toward a coworker. After an internal investigation confirms the misconduct, the employer terminates the employee for just cause, ensuring compliance with the organization’s code of conduct.
An example of a just cause clause
Here’s how a just cause clause might appear in an employment contract:
“The Employer reserves the right to terminate the Employee’s employment immediately for just cause, which may include but is not limited to misconduct, breach of company policy, failure to perform duties, or any other act that materially harms the interests of the Employer.”
Conclusion
Just cause provides a fair and legally defensible standard for making disciplinary or termination decisions. For employees, it ensures that actions are not taken arbitrarily or unfairly, while for employers, it helps protect against potential disputes and legal claims. Including a clear just cause clause in contracts or policies establishes transparency and accountability in workplace decision-making.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.