Employment termination is a delicate subject that can have serious repercussions for both the employee and the company. There are a number of reasons why an employment contract may be terminated by a company’s employer or employee. I’ll go into great depth in this response to explain the reasons for termination from both angles.
Grounds for termination from the employer’s perspective
Poor performance
Employers have the right to terminate an employee’s contract if their performance is consistently poor despite feedback, coaching, and training.
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Misconduct
Misconduct can refer to a range of behaviors, including theft, violence, insubordination, and harassment. Employers can terminate the contract of an employee who engages in such behavior.
Breach of contract
If an employee breaches their employment contract, the employer may terminate the contract. Examples of breaches of contract include disclosing confidential information, competing with the employer, or failing to fulfill their job duties.
Redundancy
It may be necessary for an employer to terminate the contracts of some employees due to redundancy if they have to downsize or restructure their business. This is a business choice and does not reflect on the performance or behavior of the employee.
Incapacity or illness
If an employee becomes incapacitated or is unable to perform their job due to illness or injury, and this is likely to continue for a prolonged period, the employer may terminate the contract.
Legal requirements
If the employer is required by law to terminate the employment contract, they may do so. For example, if an employee is found to be working illegally or has breached visa conditions, the employer may terminate the contract.
Grounds for termination from the employee’s perspective
Unfair treatment
If an employee feels that their employer has treated them unfairly, they have the right to end their employment agreement. This can include discrimination, harassment, or a breach of their employment contract.
Breach of contract
The employee may end their contract if the employer violates the employment agreement. Examples of breaches of contract include failure to pay the agreed salary or benefits, failure to provide a safe working environment, or failing to fulfill agreed-upon job duties.
Constructive dismissal
When an employer makes major modifications to an employee’s working conditions that make it impossible for them to continue working, this is known as a constructive dismissal. This can involve a pay cut, a promotion, or a shift in responsibilities.
Resignation
Employees may leave their jobs for a variety of reasons, such as personal reasons, better job offers, or discontent with their current positions.
It’s important to remember that termination procedures must always be carried out in accordance with all applicable rules and regulations. Employers must give written notice of termination to employees, outlining the reason for the termination as well as the date it became effective. Additionally, employees who believe they have been unfairly terminated may seek legal recourse.
Termination of employment is a complex issue that can have significant consequences for both the employer and the employee. Employees must have legal redress if they feel their termination was unfair, and employers must have a good reason for terminating a worker.
If you, as an employer or employee, are facing any employment-related matter, you can Ask a free question, Talk to corporate and company lawyers, and take expert advice from the best employment matter Advocate. You can also select the best corporate and company lawyers in your city through Lead India.