An employment contract may be terminated in one or more of the following circumstances: the parties agree to terminate the contract; the contract is for a fixed term and the term has expired; either the employer or the employee chooses to terminate the contract; the employee transfers to a new job with a different employer, either at the employee's request or with the employer's agreement; and circumstances beyond the parties' control.
Additionally, an employee may cancel an employment contract with two weeks' written notice, and if an employer refuses to terminate a fixed-term employment contract at the employee's request, the employee may seek a judicial settlement.
There are numerous reasons for an employer to terminate an employee's employment contract. These include downsizing or layoffs, a change in the organization's ownership, an employee's lack of skills, and other sorts of major employee misconduct, such as absenteeism, showing up to work intoxicated, stealing, or presenting false information to the company.
Employers are often required to submit one month's written notice of termination, which must be acknowledged in writing by the employee. Employers, on the other hand, are only required to provide two weeks' notice if an employee is unable to perform the job's obligations owing to a lack of qualifications or health difficulties.
Generally, an employee cannot be discharged during a time of temporary disability or leave.
The length of notice varies by employer, although it is normally limited to one month.
Severance payments are only required in specific circumstances and are typically equivalent to one or two months' wages.
Probationary periods are limited to three months for entry-level positions and six months for managers and similar positions. During the probationary period, either party may terminate employment by providing three days' written notice.