When employees and employers enter into an employment relationship, California contract law will govern that relationship, regardless if the relationship is oral, written, express or implied. The employment relationship usually defines the terms and boundaries of the agreement between the employee and employer. Depending on the circumstances of your case, you or your employer may have certain rights to terminate the employment relationship. If your employer terminates the contract outside of those rights, your employer will have to face the consequences for breaching your employment contract.
Many employers fear wrongful termination claims because firing someone for the wrong reasons can land them in significant legal trouble. Unfortunately, almost every employer will have to terminate an employee. Reasons can be unrelated to the employee's performance, such as downsizing for lack of revenue. But, even if there were valid reasons for terminating the employee, employers may worry that the former employee will assert a wrongful discharge claim.