When a board of directors decides that it must terminate the employment of a CEO, the terms of the management`s employment contract determine whether the association should pay severance pay. Carefully designed definitions of “cause” are essential. (iii) the loss of executive securities or positions, as described in this agreement; however, if the election of a vice-president or honorary president is not considered a loss of title or position; “Constructive termination without cause” means the termination of the executive`s commitment to its initiative, as stipulated in this agreement, after one or more of the following events occurred without the prior written consent of the executive (except in the context of the termination of the executive`s duties due to death, obstruction, change of control or cause): most associations have some sort of written employment contract with their executives , even if it takes the form of a letter of offer. Whether the management is recruited for a particular mandate or is employed as it sees fit, many employment contracts contain resilient agreements that are triggered when the manager is terminated “for no reason.” An employer may also lose the opportunity to resign for substantive reasons if the employer has tolerated the worker`s actions, either explicitly or implicitly, if the fault fails or is delayed, or if the employer does not have a satisfactory record of evidence that the employer has progressively disciplined and warned the worker. For this reason, the cause is expressed as a term defined in the first extract, but is not in the second extract. In fact, in the second excerpt, the concept “for cause” is so inconsistent that you simply erase it (from the highlighed part) without affecting anything. There are many types of behaviour that may constitute reprehensible behaviour and therefore may lead to the legal resignation of an employee for “cause”. However, employers are not required to outline any scenario that could lead to legal dismissal due to an employee`s contract or in a written directive or staff manual. In fact, the Texas Staff Committee points out that “the employer policy does not need to list all sorts of things that could lead to discharge, but it is generally a good idea to identify the broad categories of offences that would be immediately public and those that would generally lead to some kind of progressive disciplinary action.” The concept of dismissal for work reasons appears in employment contracts. That is where it should be — do not put it in other types of contracts.

None of these provisions would allow the employer to dismiss the executive on grounds of negligence or even negligence of its duties. A stronger definition of the case would cover any termination based on non-compliance with defined performance objectives or objectives that were communicated to management, whether or not the error was made. The Texas labour code states that misconduct never includes “an act in response to an indecent act by an employer or a superior.” As part of this clarification, it is important for employers to know that federal and regional laws prohibit employers from retaliating against workers when exercising their rights in many functions, participating in workplace investigations or conducting certain whistleblowing files.