n. a right of an employee to sue his/her employer for damages (loss of wage and "fringe" benefits, and, if against "public policy," for punitive damages). To bring such a suit the discharge of the employee must have been without "cause," and the employee a) had an express contract of continued employment or there was an "implied" contract based on the circumstances of his/her hiring or legitimate reasons to believe the employment would be permanent, b) there is a violation of statutory prohibitions against discrimination due to race, gender, sexual preference or age, or c) the discharge was contrary to "public policy" such as in retribution for exposing dishonest acts of the employer. An employee who believes he/she has been wrongfully terminated may bring an action (file a suit) for damages for discharge, as well as for breach of contract, but the court decisions have become increasingly strict in limiting an employee's grounds for suit.

In law, wrongful dismissal, also called wrongful termination or wrongful discharge, is a situation in which an employee's contract of employment has been terminated by the employer, where the termination breaches one or more terms of the contract of employment, or a statute provision or rule in employment law. Laws governing wrongful dismissal vary according to the terms of the employment contract, as well as under the laws and public policies of the jurisdiction.

In United Kingdom law, the concept of wrongful dismissal refers exclusively to dismissal contrary to the contract of employment, which effectively means premature termination, either due to insufficient notice or lack of grounds. Although wrongful dismissal is usually associated with lack of notice sometimes it can also be caused by arbitrary dismissal where no notice was required but certain grounds were specified in the contract as being the only ones available but none existed.