Can an employer terminate an employee for reporting sexual harassment?

No.  It is unlawful for an employer to terminate an employee in retaliation for reporting or opposing sexual harassment.  An employer who does so may face a lawsuit for retaliatory discharge.

An employer is not obligated to retain an employee who reports or opposes sexual harassment, and may terminate the employee for legitimate, non-retaliatory reasons.  However, the timing of the termination in relation to the protected activity is always a sensitive matter.  Close temporal proximity may raise an inference of retaliation.