Brand
We mean business
Comprehensive legal services for businesses
in New Jersey and New York

COVID-19 Notice: In order to best serve you, while being mindful of your health and safety, we are available for consultations and conferences via telephone and video. We can arrange for documents to be prepared, reviewed, signed and exchanged electronically. We are ready to assist you with all of your legal needs.

We are open and ready to assist you. Go to our COVID-19 Updates page to see our latest statement on the crisis and a list of recent news and developments during this challenging time.
GO
Close
top-contextual
comprehensive legal services for businesses

Terminating an employee who has an employment contract

If a New Jersey employee is performing poorly or causing problems in the workplace, the employer may want to let that individual go. However, if the employee in question has an employment contract, this may complicate matters because there may be legal protections that prevent a termination except in certain defined circumstances, which are often referred to as good cause.

Having good cause to terminate employees generally means that they are being let go for purely business purposes. Good cause usually includes termination for low productivity or poor performance, endangering coworkers or disrupting the workplace, the commission of illegal acts, threats of violence, violation of workplace rules and habitual tardiness or absences.

It should be noted that both written and verbal contracts may be considered valid by the court, so saying that someone can only be terminated for poor performance during a job interview or during a performance review may be sufficient to give them contractual protections. An employee may also gain contractual protection if there is an implied contract, such as if an employee handbook states that reasons for termination are limited, but implied contracts do not often hold up in court.

Employment disputes can cause a variety of problems for an organization, especially if the employee is performing poorly or reducing the profitability of a company. It may be possible to avoid legal action brought by a fired employee by ensuring that the contract is understood in advance and that the termination is handled in an appropriate manner. A lawyer can provide assistance in these matters by explaining what an employment contract covers and what the obligations of the employer are.

Source: FindLaw, “Employment Contract Law – Firing an Employee with a Contract”, accessed on Jan. 27, 2015

Office Location

Dunn Lambert, LLC
East 80 Route 4 Suite 170
Paramus, NJ 07652

Paramus Law Office Map

Dunn Lambert, LLC
1745 Broadway, 17th Floor
New York, NY 10019
New York Law Office Map


Phone: 201-957-0874
Fax: 201-291-0140

Phone: 201-291-0700
Fax: 212-519-9804
Best Lawyers | Best Law Firms | U.S.News & world report | 2017

GET ANSWERS from a firm
with a sense of business.

Archives

Review US
FindLaw Network