Employment termination in Tennessee generally follows the “at-will” doctrine. This means that an employer can dismiss an employee for any reason or no reason, as long as the termination isn’t unlawful. Unlawful termination arises when an employee is dismissed for discriminatory reasons, for example, based on race, religion, age, sex, or other protected characteristics as defined by federal and state law. Retaliation against an employee for engaging in legally protected activities, such as whistleblowing or filing a workers’ compensation claim, is also unlawful. Contractual agreements or company policies can modify the at-will employment relationship and offer specific protections or termination procedures that employers must adhere to.
Understanding the legal framework governing employment termination is crucial for both employers and employees. For employers, compliance safeguards against potential legal action and promotes fair employment practices, contributing to a positive and productive work environment. For employees, awareness of their rights and protections under state and federal law offers recourse in cases of wrongful termination. Historically, the at-will doctrine has favored employers. However, over time, legislation and court decisions have carved out exceptions to protect employees from discriminatory and retaliatory practices, balancing the scales of power in the employer-employee relationship.
