termination without cause
Definition
Termination without cause means ending an employment relationship or contract for any reason that isn't related to the other party doing something wrong. In an employment context, this gives a business owner the right to let someone go simply because the role is no longer needed, the business is downsizing, or the working relationship just isn't a good fit. The catch is that most contracts and state laws require you to give notice or pay severance when you end things this way.
Example
You hired a marketing manager on a one-year contract with a termination without cause clause, and three months in you decide to outsource your marketing instead, so you can legally end the contract by giving 30 days notice and paying the agreed severance.
Watch Out
Even when you have the legal right to terminate without cause, doing it the wrong way or at the wrong time can still expose you to a wrongful termination lawsuit, so always consult an employment attorney before pulling the trigger.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.