Texas Employment Lawyer Explains “For Cause” Termination Provision in a Typical Employment Agreement

/cdklawyers.com// 04/15/2012

Dallas employment lawyer Keith Clouse drafts employment law agreements for both executives and employers. A key provision in any employment law agreement concerns an employer’s right to terminate an executive because of the executive’s misconduct, or “for cause.” “Cause” is defined in the employment agreement, and the definition typically includes the executive’s:
• conviction of a serious criminal act;
• embezzlement from the company;
• willful and continued failure to substantially perform the executive’s duties;
• fraud;
• willful conduct that is materially injurious to the employer; and
• a material breach by the executive of the employment agreement.

 
Of course, when negotiating the employment agreement, an employer may push for a broader definition of cause and an executive may try to limit the definition of cause.

 

Because it is the executive’s misconduct that gives rise to a termination for cause, when an employer terminates an executive for cause, the employer’s contractual obligations typically end on the termination date; the employer is not obligated to pay the executive separation pay or provide the executive with any further benefits.

 

To speak to Mr. Clouse about an employment agreement or about another employment law issue, contact him at the Dallas employment law firm Clouse Dunn LLP via email at [email protected] or telephone at 214 220 3888. 

Press Release Contact Information:

KEITH A. CLOUSE

Clouse Dunn LLP

214.220.2722
214.220.3833 ( fax)
[email protected]