Termination of an Employment Contract

 A contract of employment can be terminated on the following grounds:

• On expiration of the agreed period of employment
• On completion of the specified task
• By notice duly given by either party
• By summary termination in the event of a material breach on the part of either party
• By repudiation (to reject the value or authority of the employer or employee)
• By mutual agreement
• By death of either party
• By the insolvency of the employer
• By the supervening impossibility of performance, where either party becomes permanently unable to perform his/her obligations in terms of a contract

Note: A contract may not be terminated in the absence of a justified reason.

The LRA expressly recognises the following grounds for termination of the employment contract:

• Misconduct on the part of the employee
• An employee’s poor work performance and/or incapacity
• The operational requirements of the employer

 Read more

• Read more about Dismissal here.