What constitutes wrongful termination?

Wrongful termination refers specifically to ending an employee's contract or employment in a manner that violates legal standards, often involving statutory protections. Termination for illegal reasons, such as discrimination based on race, gender, age, religion, or disability, is a clear violation of employment law and is therefore categorized as wrongful termination.

This concept is anchored in various federal and state laws, such as the Civil Rights Act and the Americans with Disabilities Act, which protect employees from being fired for discriminatory reasons. Thus, if an employee is terminated based on these illegal grounds, it constitutes wrongful termination because it breaches the legal rights afforded to all individuals in the workplace, aiming to ensure fairness and equality.

In contrast, other choices describe scenarios that do not legally qualify as wrongful termination. For instance, firing an employee for poor performance is typically within the employer's rights unless it is shown that the performance evaluation is influenced by discriminatory factors. Layoffs due to company downsizing also reflect a legitimate business decision rather than a wrongful act against individual employees. Similarly, ending a contract based on the completion of a project aligns with agreed terms and does not violate any employment law.