Criteria for Unfair Dismissal: Understanding Employee Rights

New York law provides statutory protections that establish criteria for unfair dismissal. Employers cannot terminate employees based on race, color, national origin, sex, age, disability, religion, sexual orientation, gender identity, or military status, as prohibited under the New York State Human Rights Law and the Civil Rights Act. The criteria for unfair dismissal also include terminations in retaliation for filing workers' compensation claims, serving on jury duty, voting, or reporting safety violations. Additionally, employees cannot be dismissed for refusing to commit illegal acts or for taking protected family leave under the Family and Medical Leave Act. These statutory protections form the foundation of unfair dismissal claims in New York.

New York follows the at-will employment doctrine, which allows employers to terminate employees for any reason or no reason, provided the termination does not violate law or public policy. However, significant exceptions to at-will employment create criteria for unfair dismissal claims. The criteria for unfair dismissal include terminations that violate public policy, such as firing an employee for reporting criminal conduct, refusing to participate in illegal activities, or exercising statutory rights. Courts have recognized the implied covenant of good faith and fair dealing, which may provide grounds for unfair dismissal claims even absent an express contract. These exceptions ensure that employers cannot use at-will employment as a shield for unlawful terminations.

Protected class discrimination is a critical criterion for unfair dismissal in New York. The New York State Human Rights Law prohibits discrimination based on race, color, national origin, sex, age, disability, religion, sexual orientation, gender identity, and other protected characteristics. The criteria for unfair dismissal include terminations where the employee's protected class status was a motivating factor in the decision to dismiss. Employers may assert legitimate, non-discriminatory reasons for termination, but the criteria for unfair dismissal require that these reasons be the true basis for the termination. Employees can establish unfair dismissal by demonstrating that the employer's stated reasons are pretextual or that the employee was treated differently than similarly situated employees outside the protected class. Courts examine factors such as timing of the termination, departure from standard procedures, and inconsistent application of company policies to determine whether dismissal was unfair.

Retaliation for protected activities constitutes a major criterion for unfair dismissal in New York. Employees cannot be terminated for reporting workplace violations, participating in investigations, filing complaints with government agencies, or engaging in other legally protected conduct. The criteria for unfair dismissal based on retaliation require establishing that the employee engaged in protected activity, the employer knew of this activity, the employee suffered an adverse employment action, and a causal connection existed between the protected activity and the adverse action. Protected activities include reporting wage and hour violations, discrimination, harassment, safety hazards, and other unlawful conduct. Employers who dismiss employees for these activities face significant liability for unfair dismissal.

Contractual employment agreements establish specific criteria for unfair dismissal by defining the terms under which employment may be terminated. Employees with written contracts specifying grounds for termination, notice requirements, or severance obligations have contractual protections against unfair dismissal. The criteria for unfair dismissal include terminations that violate these contractual terms, such as dismissing an employee without cause when the contract requires cause or without providing required notice periods. Courts enforce these contractual provisions to protect employees from unfair dismissal. Additionally, implied contracts may arise from oral promises, course of dealing, or industry practice, and violations of these implied terms can constitute unfair dismissal. When disputes arise, courts examine the language of employment agreements and the parties' conduct to determine whether dismissal was unfair under the contract.

Employee handbooks and company policies may establish criteria for unfair dismissal by creating binding procedural requirements. When employers establish discipline and termination procedures in handbooks or policies, courts may find that these procedures create contractual or quasi-contractual obligations. The criteria for unfair dismissal include terminations that deviate from established procedures, such as failing to provide warnings, conducting investigations, or allowing employees to respond to allegations. If an employer consistently follows certain procedures for other employees but deviates when terminating a particular employee, this inconsistency may support an unfair dismissal claim. However, employees must demonstrate that the handbook created enforceable obligations and that the employer breached these obligations through the termination. Additionally, employers can reserve the right to modify policies, and clear reservation of rights language may limit the enforceability of handbook procedures as criteria for unfair dismissal.