What Employers Should Watch When Terminating an Employment Contract
Why proper procedure matters when terminating employment, and the main risks employers face.
Günay Legal
Terminating an employment contract carries both legal and commercial consequences for an employer. When termination isn't handled procedurally correctly, it can open the door to disputes over employee receivables and reinstatement claims.
Correctly identifying the type of termination
Whether a termination is for just cause or valid cause makes a material difference to its consequences. Correctly identifying the reason for termination and communicating it clearly, specifically and in writing strengthens the employer's position in any subsequent dispute.
Procedural steps
Requirements such as obtaining the employee's defence, notice periods, and the form of the termination notice can vary depending on the employment contract and applicable regulations. Following these steps completely is decisive for the termination's validity.
Common disputes that arise
Severance and notice pay calculations, unused leave entitlements, and overtime claims are among the issues most frequently raised after termination. Calculating these correctly before termination reduces the risk of a later dispute.
The value of legal advice
Obtaining a legal assessment before deciding to terminate ensures the process is conducted properly and puts the employer in a stronger position against any potential reinstatement claim or receivables dispute.
This article is for general information only and does not constitute legal advice. For your specific situation, please get in touch with us.