Generally, an employer can terminate an employee for any reason. While employers enjoy a substantial amount of leeway in making decisions about an employee’s continued employment, there are a number of obligations that must be met when firing someone. There are also significant liabilities attached.

In most instances, where an employer terminates the employment of someone who has been continuously employed for more than three months, the employer is required to provide them with their advance notice of the termination, payment in lieu of that notice, or (in some circumstances) both. This is known as reasonable notice, or severance, but most commonly referred to as a “severance package”. Where no notice, or insufficient notice is granted, that employee may have grounds to make a wrongful dismissal claim. Such claims can be expensive to litigate and can have significant financial consequences for the employer.

Generally speaking, there are three types of wrongful dismissal claims:

• Where an employer terminates employment without cause, but refuses to pay adequate compensation.
• Where an employer inappropriately terminates an employee for cause and fails to pay any compensation.
• Where an employer, by altering fundamental terms and conditions of employment and/or by making the work environment intolerable, “constructively” dismisses an employee.

In summary, almost any dismissal from employment without notice is wrongful. Wrongfully dismissed employees are entitled to compensation from their employers – sometimes up to two years’ worth of wages and other benefits.