---
title: What legal implications should a Texas business consider before terminating an employee?
description: Looking to terminate an employee in Texas? Make sure you're aware of the legal implications. Legal Faqs can help you understand the legal risks and make informed decisions. Read our blog for more information.
image: https://www.legalfaq.ai/hubfs/LegalFAQ/texas-legal-faqs.jpg
---

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 March 18, 2023

# What legal implications should a Texas business consider before terminating an employee?

![Picture of Chris Battis](https://www.legalfaq.ai/hs-fs/hubfs/battis-mug.jpg?width=50&name=battis-mug.jpg) By  [Chris Battis](https://www.legalfaq.ai/faqs/author/chris-battis)  ·   1 minute read

Legal implications to consider for terminating an employee vary depending on the circumstances surrounding the termination. However, Texas business owners should keep in mind the following aspects before terminating an employee:

1. **Discrimination:** One of the most significant legal implications a business should consider is whether the reasons for the termination may be viewed as discriminatory. Texas is an at-will employment state, meaning employers can terminate employees for any reason without cause. However, an employer cannot terminate an employee based on race, gender, religion, age, national origin, or disability. Additionally, the employer must be able to provide documentation that supports that the termination is not based on discrimination.
2. **Retaliation:** Texas law prohibits employers from retaliating against employees who report or participate in an investigation or lawsuit of discrimination, harassment, or other legal claims. An employer cannot terminate an employee as retaliation for filing a complaint or being a whistleblower.
3. **Breach of Contract:** A business should consider whether a contract with the employee is in place or not. If there is one, the employer must follow the terms outlined in the contract. Terminating the employee without cause or against the terms of the agreement is considered a breach of contract, which can lead to a lawsuit and damages.
4. **Violation of Public Policy:** Texas law also protects employees from termination for engaging in lawful activities or for refusing to participate in unlawful activities, such as reporting an illegal act performed by the employer. The employer cannot terminate the employee for participating in a political campaign or election or serving on a jury.
5. **Severance Agreements:** If the employer plans to release the employee for reasons such as downsizing, retirement, or reorganization, they may choose to provide a severance package to the employee as part of the agreement. A severance package may include payment, benefits or other incentives to help the employee transition into new employment. However, the agreement must include proper language and any limitations or conditions the employee must adhere to for the agreement to be valid.
6. **Documentation:** Texas employers are encouraged to document any reasons for termination to avoid any potential disputes or lawsuits. Documentation should include the reasons for the termination, steps taken to prevent the situation from escalating, and any employee performance issues.

Overall, employers must follow specific legal procedures when terminating an employee to avoid any legal actions. They must ensure non-discriminatory practices, follow the terms of the contract, and maintain proper documentation of the termination. It is recommended that employers consult with an employment attorney to avoid legal risks and ensure that they comply with all state and federal employment laws.

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