Getting Fired? Check Your Termination Clause
For Cause vs. Without Cause. The distinction determines your severance package.
Nobody reads the termination section when they are accepting a job offer. But when the layoffs come, it's the only section that matters.
"At-Will" Employment
In most US states, you can be fired for any reason (or no reason) at any time. The contract confirms this.
"For Cause" vs. "Without Cause"
- For Cause: You stole money, punched a coworker, or lied. Result: Fired immediately, $0 severance.
- Without Cause: Layoffs, budget cuts, or "bad fit." Result: You usually get severance (if it's in the contract!).
The "Good Reason" Resignation
This protects you from constructive dismissal. If the company cuts your salary by 20% or forces you to relocate to Alaska, you can quit for "Good Reason" and still collect your severance package. Always ask for this clause.
Did you know?
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