What is the difference between wrongful termination and wrongful contract termination?

Wrongful termination and wrongful contract termination are two different legal concepts in the state of Arizona. Wrongful termination refers to the illegal termination of an employee’s employment due to discrimination, retaliation for engaging in protected activity, or some other violation of public policy like whistleblower protection. Every employee in Arizona has the right to not be discriminated against for their membership in certain protected classes such as race, color, religion and sex. Additionally, they are protected against retaliatory termination for engaging in certain activity such as reporting violations of the law or refusing to follow an illegal order. Wrongful contract termination refers to the termination of an employment contract without proper cause or breach of that contract. In Arizona, either the employee or the employer may terminate an employment contract at any time. However, if an employee is wrongfully terminated from a contract that was not breached or hasn’t expired, then the employer may be liable for wrongful contract termination. Damages for wrongful contract termination are typically more limited than for wrongful termination, as the former usually only require the payment of the remaining salary and benefits due under the contract. In summary, wrongful termination refers to terminating an employee in violation of public policy, whereas wrongful contract termination refers to terminating an employment contract without proper cause or breach. For either case, the employee may be able to pursue legal action to seek damages from the employer.

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