Termination of Contract

Termination of Contract

A contract of employment may be terminated by the employer, employee or automatically.

Termination by the employer

An employer can unilaterally terminate the contract of employment by dismissing the employee. There are three types of dismissal. Under Section 95(1) ERA an employee is dismissed where:

(a)  the employer expressly dismisses the employee (with or without notice);

(b)  a limited-term contract expires without being renewed; or

(c)  the employee is constructively dismissed.

Unfair dismissal and wrongful dismissal cannot exist without the employee first proving that they have actually been dismissed; it is therefore essential for the employee to establish one of the dismissals defined under s.95(1) ERA.