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Private school whether they are christian or just simply private in nature have their own set of rules.  With no government funding they are completely allow to do so as a private organization.  There are rules and guidelines that you have to follow when you sign your contract, code of ethics/conduct you sign in most cases, and to teach at a christian school there is generally a statement of faith that goes along with that.  She violated their contract and was terminated.  This would have happened with any employer if a contract was breached.