Contract Termination For Cause In Phoenix
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Key elements of a well-drafted Termination With Cause clause: Definition of Cause: Clearly specifying the events or circumstances that constitute grounds for termination, such as non-payment, breach of representations or warranties, violation of laws or regulations, or failure to perform material obligations.
“Just causes” – refer to “those instances enumerated under Article 297 Termination by Employer of the Labor Code, as amended. These are causes directly attributable to the fault or negligence of the employee.” (Section 4 b, Rule I-A, Ibid.) Otherwise stated, just causes are grounds for termination of employment.
Termination for cause occurs when a party's actions or inactions cause the contract to break down. This could be because they've failed or refused to perform their contractual obligations and breached the contract, for example.
The Bottom Line. As an employee, you should be aware that just cause dismissal is not easy for an employer to prove. If you are fired for just cause, it makes sense to challenge it as you have much to gain and very little to lose.
Just causes refer to situations where the employee has committed acts that warrant termination due to misconduct or failure to meet obligations. These causes are well-delineated under Article 297 of the Labor Code.
A "just cause" dismissal (also referred to as "dismissal for cause" or "summary dismissal") is the termination of employment initiated by the employer in response to employee misconduct that is so serious that it either: Violates an essential condition of the employment contract.
Arizona law provides that an employer may terminate an employee at any time. The term is called “at-will employment.” The legal basis for this is that the employment relationship is considered to be like a contract and at any time either party may decide to end the employment relationship. (A.R.S. § 23-1501).
However, establishing a valid termination for cause requires: Proving the employee engaged in misconduct with malice. Proving the misconduct was severe. Showing that termination for cause was the only option available.
However, establishing a valid termination for cause requires: Proving the employee engaged in misconduct with malice. Proving the misconduct was severe. Showing that termination for cause was the only option available.
