What constitutes “just cause” regarding the termination of an employment contract?

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What constitutes “just cause” regarding the termination of an employment contract?

I want to terminate contract early; I need to understand  the termination language in my employment contract. It reads “The contract employee shall, with just cause, have the right to terminate the agreement prior to the termination date with a minimum of 15 working days notice…” “Should the employee terminate without cause, notice approval they shall be liable for any and all costs associated”. I am being considered for a new permanent position in another company.

Asked on October 12, 2011 under Employment Labor Law, Colorado

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

There is, unfortunately, *no* specific legal definition of "just cause" for this situation; often, in contracts like this, "cause" or "just cause" are usually defined somewhere. (For example: in terms of when the employer can fire the employee and what the employee gets on termination, the contract will often define "just cause" as involving theft, breach of company policy, etc.)

Without a definition, it is likely that "just cause" would involve something *the company* does which justifies you leaving it, such as a demotion, pay reduction, transfer to a distant location, etc. This is analogizing from the fact that, as stated above, "just cause" for a company to fire an employee, when there is a "just cause" restriction on termination, involves some bad or wrongful act by the employee him- or  herself.

It is highly *unlikely* that simply getting a job offer elsewhere would consitute "just cause" for this purpose, since that would mean the "just cause" provision would have no teeth--you could leave anytime it suited you to do so. Therefore, again,  it is most likely that "just cause" would mean some act by the company justifying you leaving it.


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