Termination of employment

What is the difference between at-will and just-cause termination?

At-will employment, used in almost every US state, lets either party end the contract at any time without giving a reason (provided the reason is not illegal). Just-cause regimes, common across Europe and most of the world, require employers to show a valid reason and follow a documented process before dismissing someone.

Which countries require just cause to dismiss an employee?

Most countries outside the US require just cause. Germany, France, the UK, Japan, Brazil, and the majority of other jurisdictions all require a fair reason and a proper process. In Germany, the Kündigungsschutzgesetz gives strong protection to employees with more than six months' service at companies with more than ten employees.

Even where at-will rules apply, there are important exceptions. In the US, you cannot terminate someone for an illegal reason such as discrimination based on race, sex, age, disability, or national origin. Montana is the only US state that requires just cause for employees who have completed a probationary period.

What is a statutory notice period?

A statutory notice period is the minimum amount of advance warning an employer must give before ending a contract. The length is set by law and typically increases with the employee's length of service. Contractual notice can be longer but cannot be shorter than the statutory minimum.

In the UK, the Employment Rights Act 1996 sets the statutory minimum at one week per completed year of service, rising to a maximum of twelve weeks for employees with twelve or more years of service. Collective bargaining agreements or individual contracts often provide longer periods.

What happens if you get termination wrong?

An unlawful dismissal can result in claims for unfair or wrongful dismissal, reinstatement orders, back-pay awards, or statutory severance payments. In some countries, employment tribunals or labour courts can require significant compensation. The risk is especially high when a company terminates someone in a country where it has no local employment expertise.

Frequently asked questions

• Can an employer in the US fire someone without a reason?+

  Yes, in 49 US states. At-will employment means no reason is required, unless the reason is illegal, such as discrimination or retaliation for whistleblowing. Montana is the only state that requires just cause once an employee has passed their probationary period.
• Do you have to pay severance when you terminate someone?+

  It depends on the country and the circumstances. Some countries have statutory severance entitlements that kick in regardless of the reason for dismissal. Others only require severance in specific cases such as redundancy. Your employment contract may also create additional obligations beyond what the law requires.
• What counts as just cause for dismissal?+

  Just cause typically includes serious misconduct such as theft, fraud, violence, or a fundamental breach of contract. In some jurisdictions it also covers repeated poor performance following documented warnings. What qualifies varies by country, and the bar is often higher than employers expect.
• How does using a global employment platform affect termination?+

  When you employ someone through a global employment platform like Teamed, the platform's local entity acts as the legal employer and carries out termination in line with local law. That covers notice periods, documentation, severance, and any required consultation, so you stay compliant without needing your own local entity.

Related terms

• Severance pay
• Notice period
• Employment contract
• Worker misclassification