Losing your job is tough, but being fired with cause comes with an added layer of stress and uncertainty. Unlike a layoff, being terminated for cause means your employer believes you did something wrong—whether it was violating company policies, underperforming, or displaying misconduct. It’s not just the end of your time at that company, but potentially a red flag for future employers.
In this article, we'll break down exactly what it means to be fired with cause, how it differs from other types of termination, and what steps you can take to rebuild your career—including what to do if you believe it was unfair and how to explain it during your next job search.
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What is termination for cause?
Termination with cause occurs when an employer ends your employment for a specific reason, such as violating company policies, poor performance, or inappropriate behavior. These are not minor issues but serious actions or patterns that demonstrate you're no longer fit for the job.
Termination for cause examples include theft, harassment, or continual failure to meet performance standards. This type of termination usually means you're not entitled to severance pay, and it may affect your eligibility for unemployment benefits.
Understanding termination without cause
Termination without cause, on the other hand, occurs when your employment is ended for reasons unrelated to your performance or conduct. This type of termination is typically completely outside your control, whether due to company restructuring, budget cuts, or layoffs.
In these cases, the employer is usually required to offer severance pay and maintain your benefits for a limited time. It’s also generally easier to claim unemployment benefits after termination without cause since it’s not tied to any fault of your own.
At-will termination
In many states, employment is governed by at-will agreements. “In at-will employment, an employer can terminate an employee for almost any reason, or no reason at all, as long as it doesn't violate specific legal protections, such as discrimination laws,” says labor attorney Mark Sadaka.
While at-will termination may seem similar to termination without cause, the key difference is that it can happen at any moment without severance or extended benefits unless the company chooses to offer them. However, wrongful termination claims can still arise if discrimination or retaliation is involved.
Common reasons for termination with cause
As a general rule of thumb, employers should have good documentation on what reasons have led the company to decide on the termination. While every business has its own policies, the reasons for a with-cause termination generally fall under a few key categories.
1. Gross misconduct
Gross misconduct includes actions that are so severe they justify immediate termination. This can range from violent behavior or harassment to theft or damaging company property. When an employee engages in gross misconduct, it’s often a clear breach of trust, leaving no room for correction or further employment.
2. Insubordination
Insubordination refers to a refusal to follow lawful instructions or openly defying a superior. Whether it's ignoring direct orders, refusing to perform job duties or publicly challenging management, insubordination can disrupt the workplace and damage employer-employee relations, leading to dismissal with cause.
3. Theft or fraud
Theft or fraud in the workplace is an obvious reason for immediate termination. This could include anything from stealing company property to falsifying expense reports or embezzling funds. Because trust is at the core of any job, these acts of dishonesty often result in swift dismissal.
4. Breach of confidentiality
Employers rely on their employees to keep sensitive information secure. Whether it’s leaking trade secrets, disclosing client data, or sharing confidential company information, breaches of confidentiality can lead to severe consequences, including termination with cause.
5. Alcohol or drug abuse
Substance abuse on the job can lead to termination, especially if it affects job performance or puts others at risk. For instance, an employee showing up to work intoxicated or using drugs during work hours can cause significant harm, both to the company’s reputation and the safety of coworkers.
6. Violation of safety rules
Safety violations are taken seriously by employers, particularly when they endanger other employees or result in accidents.
“When it comes to proving ‘just cause’ for safety violations, employers must typically demonstrate that the violation was significant enough to warrant termination,” Sadaka says. “This often involves showing clear evidence of the safety breach, such as incident reports or witness testimonies, as well as proving that the employee had been made aware of the safety policies and potential consequences of violating them.”
Consistency is also crucial; if similar infractions by other employees haven’t resulted in termination, the case for termination with cause can weaken.
7. Criminal conviction
Even if criminal activity occurs outside of work, it can still lead to termination if it affects the company’s reputation or if the nature of the crime makes the employee unfit for their job. For instance, a conviction for a financial crime would likely disqualify someone from handling sensitive financial duties at work.
8. Incompetence or poor performance
Repeated poor performance or a failure to meet basic job expectations over time can also be grounds for termination with cause. This typically occurs after several warnings or attempts to improve the employee's performance have failed.
9. Other company policy violations
Beyond these more serious offenses, other policy violations—such as having inappropriate relationships with colleagues, excessive absenteeism, or misuse of company resources—can also result in being terminated with cause. Each company has its own rules, and breaking them can lead to dismissal if the violation is considered serious enough.
What to do if you believe you were terminated unfairly
If you believe your termination with cause was unjust, the first step is to seek clarification. “That may include speaking with the Human Resources department,” Paik says. “Understand the policies of the organization to determine if the termination is justified.”
After the company’s response, if you still believe they were unfairly terminated, thoroughly review employment contracts or severance documents. These materials outline your rights, responsibilities, and the terms of your employment, including conditions under which you can be terminated. Look for any clauses that seem unclear or that you believe may have been violated during the termination process.
Seek legal advice
If, after reviewing your contract, you still feel the termination was unjust, it’s time to seek professional guidance. Consulting with an employment lawyer can determine whether you have grounds to file a wrongful termination claim. Legal experts can help you understand your rights and the potential legal options available to you.
Gather evidence
To strengthen your claim, gather as much evidence as possible, including any documents or communications that could support your argument, such as performance reviews, emails, incident reports, or written warnings. Documenting your case can make a significant difference in proving that the termination was unjustified.
File a complaint
If you've reviewed your contract, consulted legal experts, and gathered evidence, and you still believe your termination by cause was unfair, your next step is to file a formal complaint. This can be done through your state or national labor board, or, in some cases, through the court system.
Your lawyer can guide you through the complaint process, ensuring you follow all necessary steps and deadlines. Filing a complaint might also prompt the company to negotiate a settlement or reconsider its decision before the issue escalates to a legal battle.
How to explain being fired with cause in an interview
Being terminated with cause can feel like a major setback, but remember that it doesn’t have to define your career. While the situation may seem overwhelming, there are actionable steps you can take to move forward and position yourself for future success. Have these talking points ready even before you begin your next job search, so that you’re prepared for any conversation with a recruiter or hiring manager.
Be honest
Prospective employers will likely ask why you left your last position. “It’s important for candidates to be honest with potential employers when discussing termination with cause during the interview,” says Thomas Paik, managing director of Cowen Partners Executive Search and specialized in executive leadership recruitment.
During the interview, a candidate can reference termination with cause in several ways. “The culture of the organization may not have been a good fit and it may have taken some time to assess,” Paik says. “There are times when the responsibilities of the position may have changed due to a reorganization.” Transparency builds trust, and employers value candidates who take responsibility for their past.
Focus on what you learned
Turn a difficult situation into a positive one by discussing the lessons you’ve learned. If your termination was related to performance, explain how you’ve taken steps to improve and what you would do differently moving forward. Framing the experience as a learning opportunity can show employers that you're capable of growth and self-reflection.
Keep it short and professional
While it might be tempting to explain your side of the story, avoid focusing on the negative side of the situation. “Candidates should avoid talking negatively about the employer and focus on how they will be successful for the position they are interviewing for,” Paik says.
It’s also important to be direct but not to go into unnecessary detail. Over-explaining can make it seem like you're still hung up on the issue. Instead, provide a brief explanation, share what you’ve learned, and move the conversation forward to what you can offer in the new role without letting emotions cloud your response.
Job search strategies after being terminated with cause
Once you've prepared your explanation, it's time to refocus your efforts on finding the right opportunity. The first thing to do is target companies that offer second chances.
Some businesses are more open to hiring individuals with complicated job histories, especially those who can demonstrate personal growth. Focus on organizations that value rehabilitation or second chances, as they may be more understanding of your situation and willing to consider your qualifications beyond the termination.
This might help: 19 Companies That Prioritize Your Mental Health and Well-Being
Another helpful strategy is leveraging your professional network to find opportunities. Personal referrals and connections can sometimes bypass the formal application process, allowing you to explain your situation in a more direct and personal way. Attend industry events, reach out to former colleagues, and stay active on job platforms like LinkedIn and The Muse (hi!) to expand your job search efforts.
Bottom line
Being fired with cause is tough, but it doesn't have to define your career. Focus on what you've learned and how you're working to improve. Use this experience as an opportunity for personal and professional growth, and you'll be better prepared for new opportunities ahead.
FAQs
What does terminated for cause mean?
Being terminated for cause means your employment was ended due to a specific issue related to your behavior, performance, or violation of company policies. Unlike a layoff, termination for cause implies that your actions were the direct reason for your dismissal, such as misconduct, theft, or consistently poor job performance.
What should I do if I think I was wrongfully terminated with cause?
If you believe you were wrongfully terminated with cause, first review your employment contract to understand your rights. Then, seek legal advice to determine if you have a valid claim for wrongful termination. Gather any evidence, such as emails or performance reviews, to support your case, and consider filing a formal complaint with the labor board or pursuing legal action if necessary. Consulting with a lawyer early on is key to evaluating your options.
Do you get severance if fired with cause?
In most cases, employees fired with cause don’t receive severance pay. Severance is typically reserved for those laid off or dismissed without cause. However, the terms can vary, so review your employment contract to see if there are any provisions for severance in cases of termination with cause.
Can I collect unemployment if I am fired for a cause?
If you were fired with cause, you're generally not eligible to collect unemployment benefits. Termination with cause usually means you were let go due to misconduct, poor performance, or violation of company policies, which disqualifies you from receiving unemployment. However, eligibility rules vary by state, and in some cases, you may be able to appeal the decision if you believe the termination was unjust or if the cause for termination doesn't meet the state's criteria for disqualification.
How do I explain being fired with cause to a potential employer?
When explaining being fired with cause, it’s important to be honest and professional. Briefly acknowledge the termination, focus on what you’ve learned from the experience, and emphasize the changes you've made since then. Avoid blaming others or speaking negatively about your former employer, and keep your explanation concise to move on to why you're a good fit for the new role.