Employment contracts can be terminated with or without cause by either the employer or the employee. The parties to the agreement may terminate it verbally or in writing.
Employers are not permitted to terminate an employment contract based on race, color, national origin, place of birth, age, pregnancy, religion, political opinion, sex, sexual orientation, HIV status, disability, marital status, or family responsibilities.
Employers have the authority to terminate an employee for willful wrongdoing or poor performance. An employee may terminate an employment relationship with an employer if the employer is abusive, the employer fails to pay the remuneration due under the contract, the employer fails to provide work and pay remuneration, or the worker is forced to resign through fraud or duress or is forced to sign a letter of resignation or other written document.
Fixed-term contracts expire at the conclusion of the agreement or at the conclusion of its renewal. Unless the parties agree otherwise, no severance payout is necessary in this scenario.
Verbal or written notice of at least 30 days is required for permanent or indefinite-term contracts. In lieu of notice, either party may pay the other party the amount of the employee's remuneration earned during the notice period. During the notice period, the employer must allow the employee reasonable time off without loss of pay to seek additional employment at their request.
When an employer terminates an indefinite term contract without cause or at the employee's request, severance payment is required. This begins with three months' pay for every 12 months of continuous employment.
Generally, the probationary or trial period lasts between three and six months. However, this may exceed six months depending on the length of the employment contract if it is a contract for a definite duration and particular field of business activity.