Unemployment Compensation & "Just Cause"
In a previous article entitled At-Will Employment In Delaware, I wrote about how Delaware employers have the right to fire their at-will employees without warning and without giving the employee an opportunity to improve. As a Delaware business lawyer, I have to remind my clients that employees who are terminated have the right to collect unemployment compensation unless there was "just cause" for their termination.
According to the courts in Delaware, "just cause" means a wilful or wanton act or pattern of conduct in violation of the employer’s interest, the employee’s duties, or the employee’s expected standard of conduct.
In this context, the word "wilful" means actual, specific, or evil intent, while the word "wanton" means needless, malicious, or reckless conduct.
There are some rules to remember when it comes to whether there was just cause.
1. An employee's wilful or wanton conduct will not be just cause for termination if the employer has consistently tolerated this conduct by his employees.
2. In order for there to be just cause, there must be notice to the employee that poor performance or behavior could result in termination of employment.
3. Violation of a company rule can be considered just cause, but only if the employee is aware of the rule and that violation of the rule can lead to termination.
4. Poor attendance can amount to just cause for termination.
The Delaware Department of labor puts out an Unemployment Insurance Handbook For Employers which is available here for downloading.
