Notice of termination of contract
11. Provision as to termination of contracts.
(1) A contract of service for a specified period of time or for the performance of a specified piece of work shall, unless otherwise terminated in accordance with this Part, terminate when the period of time for which such contract was made has expired or when the piece of work specified in such contract has been completed.
(2) A contract of service for an unspecified period of time shall continue in force until terminated in accordance with this Part.
12. Notice of termination of contract.
(1) Either party to a contract of service may at any time give to the other party notice of his intention to terminate such contract of service.
(2) The length of such notice shall be the same for both employer and employee and shall be determined by a provision made in writing for such notice in the term of the contract of service, or, in the absence of such provision in writing, shall not be less than:
(a) 4 weeks’ notice if the employee has been so employed for less than two years on the date on which the notice is given;
(b) 6 weeks’ notice if he has been so employed for two years or more but less than five years on such date;
(c ) 8 weeks’ notice if the has been so employed for five years or more on such date;
provided that this section shall not be taken to prevent either party from waiving his right to a notice under this subsection.
(3) Notwithstanding anything contained in subsection (2), where the termination of service of the employee is attributable wholly or mainly to the fact that:
(a) the employer has ceased, or intends to cease to carry on the business for the purposes of which the employee was employed;
(b) the employer has ceased or intends to cease to carry on the business in the place at which the employee was contracted to work;
(c ) the requirements of that business for the employee to carry out work of a particular kind have ceased or diminished or are expected to cease or diminish;
(d) the requirements of that business for the employee to carry out work of a particular kind in the place at which he was contracted to work have ceased or diminished or are expected to cease or diminish;
(e) the employee has refused to accept his transfer to any other place of employment, unless his contract of service requires him to accept such transfer; or
(f) a change has occurred in the ownership of the business for the purpose of which an employee is employed or of a part of such business, regardless of whether the change occurs by virtue of a sale or other disposition or by operation of law;
the employee shall be entitled to, and the employer shall give to the employee, notice of termination of service, and the length of such notice shall be not less than that provided under subsection (2)(a), (b) or (c ), as the case may be, regardless of anything to the contrary contained in the contract of service.
(4) Such notice shall be written and may be given at any time, and the day on which the notice is given shall be included in the period of the notice.
13. Termination of contract without notice.
(1) Either party to a contract of service may terminate such contract of service without notice or, if notice has already been given in accordance with section 12, without waiting for the expiry of that notice, by paying to the other party an indemnity of a sum equal to the amount of wages which would have accrued to the employee during the term of such notice or during the unexpired term of such notice,
(2) Either party to a contract of service may terminate such contract of service without notice in the even of any wilful breach by the other party of a condition of the contract of service.
14. Termination of contract for special reasons.
(1) An employer may, on the grounds of misconduct inconsistent with the fulfilment of the express or implied conditions of his service, after due inquiry:
(a) dismiss without notice the employee; or
(b) downgrade the employee; or
(c ) impose any other lesser punishment as he deems just and fit, and where a punishment of suspension without wages is imposed, it shall not exceed a period of two weeks.
(2) For the purposes of an inquiry under subsection (1), the employer may suspend the employee from work for a period not exceeding two weeks but shall pay him not less than half of his wages for such period;
Provided that if the inquiry does not disclose any misconduct on the part of the employee the employer shall forthwith restore to the employee the full amount of wages so withheld.
(3) An employee may terminate his contract of service with his employer without notice where he or his dependants are immediately threatened by danger to the person by violence or disease such as such employee did not by his contract of service undertake to run.
15. When contract is deemed to be broken by employer and employee.
(1) An employer shall be deemed to have broken his contract of service with the employee if he fails to pay wages in accordance with Part III,
(2) An employee shall be deemed to have broken his contract of service with the employer if he has been continuously absent from work for more than two consecutive working days without prior leave from his employer, unless he has a reasonable excuse for such absence and has informed or attempted to inform his employer of such excuse prior to or at the earliest opportunity during such absence.
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Filed Under: Employment Act 1955
