Montana Employment Termination or Firing Package
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FAQ
What is ?good cause? for being terminated? ?Good cause? exists when the employer has a good faith business reason for discharging the employee, such as a layoff for economic reasons or termination of the employee for poor performance.
Generally, under Montana Code Ann. § 39-3-205, an employer must immediately issue a final paycheck to a terminated employee, within four (4) hours or the end of the business day, whichever occurs first, unless the employer has a preexisting written policy to the contrary.
Under Montana law, ?Good cause? is defined as ? reasonable job-related grounds for dismissal based on a failure to satisfactorily perform job duties, disruption of the employer's operation, or other legitimate business reason.? MCA § 39-2-903(5).
In Montana, this is called constructive discharge. Next, an employee may be entitled to bring a wrongful termination claim where an employer fails to comply with its own policies and procedures governing discipline and/or termination or, in some circumstances, other employment policies.
Wrongful discharge can arise under three circumstances: violation of a statute (i.e. discrimination), breach of contract, or a tort action involving bad faith or tortuous discharge.
Termination for cause is the dismissal of an employee for a satisfactory reason. An employee may be fired for various reasons that may include misconduct, fraud and disclosure of confidential information.
Private sector employers are not required to pay out severance pay, sick leave, or paid time off (PTO). These are considered benefits and may be paid based on the employer's policies. There is no requirement in state law to provide these benefits.
Montana is not an ?at will? state. In some instances, the Wrongful Discharge From Employment Act does not apply, but generally, once an employee has completed the established probationary period, the employer needs to have good cause for termination.
