What is the difference between wrongful termination and layoffs?

Wrongful termination and layoffs are two different terms used when talking about ending an employee’s employment. Layoffs, also known as furloughs, usually occur when an employer reduces their workforce due to economic hardship or other reasons. This is typically a temporary situation and employees are eligible for severance and other benefits. Wrongful termination, on the other hand, is typically a more permanent action. It is when an employee’s job is terminated due to discriminatory practices, breach of contract, retaliation, or other illegal reasons. In North Carolina, in order to prove wrongful termination, an employer must prove that the employee’s job was terminated in violation of a previously-agreed-upon policy. In addition, wrongful termination is also considered a form of workplace discrimination, and can be problematic if the employee is not hired back in their original position. On the other hand, layoffs, while still difficult for employees, do not always carry the same stigma. While layoffs may be a result of economic hardship, wrongful termination is not. Layoffs can be a decision made by the employer on a case-by-case basis and employees are usually treated fairly. Wrongful termination, on the other hand, often has a discriminatory or retaliatory motive that breaks established employment laws.

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What is the difference between wrongful termination and layoffs?

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