What is the term used when an employer terminates an employee for a discriminatory reason?

The term used when an employer terminates an employee for a discriminatory reason is known as wrongful discharge. This refers specifically to situations where an employee is fired based on discriminatory practices, such as race, gender, age, or disability, which violate laws intended to protect employees from unfair treatment. Wrongful discharge cases typically involve legal ramifications, as they contravene employment laws and may result in lawsuits against the employer.

In contrast, constructive discharge involves circumstances where employees are forced to resign due to an employer's intolerable working conditions, rather than a direct termination. Reduction in force refers to layoffs due to organizational restructuring or financial challenges, which may not necessarily involve discrimination. Discharge without cause indicates termination that does not require justification from the employer but does not inherently imply any illegal or unethical reasoning behind the termination.

Understanding the nuances of wrongful discharge is critical for HR professionals, as it informs policy development and employee relations initiatives aimed at fostering a fair and equitable workplace.