In the US, “for cause” termination is specific terminology used to disqualify someone from getting unemployment benefits, which means the employer’s unemployment insurance premiums do not go up.
For example, if you terminate an employee for coming to work late over and over, then the employee was clearly not meeting their expectations and they get terminated due to their own actions, hence they are not eligible for unemployment benefits. Because the state does not have to pay unemployment benefits, the state does not increase the amount of unemployment insurance premiums the employer has to pay.
If you terminate someone to improve cash flow, then the employee is not considered to be terminated due to the employee’s actions, and hence they would be eligible for unemployment benefits. Hence the employer’s unemployment insurance premium probably will go up.
For example, if you terminate an employee for coming to work late over and over, then the employee was clearly not meeting their expectations and they get terminated due to their own actions, hence they are not eligible for unemployment benefits. Because the state does not have to pay unemployment benefits, the state does not increase the amount of unemployment insurance premiums the employer has to pay.
If you terminate someone to improve cash flow, then the employee is not considered to be terminated due to the employee’s actions, and hence they would be eligible for unemployment benefits. Hence the employer’s unemployment insurance premium probably will go up.