Question

Courts are often faced with the questions namely breach of the employment contract and the termination of the employment contract. Explain the difference to your client. Also give practical examples

Answer 1

Meaning of an employment contract:

Employment contract agreement between an employer and employee that depicts all the rules and regulations they possess to each other. It also shows all the details regarding the period of job contract, salary package, vacation details and other information regarding the job role for the employee. In other words, a contract of employment is a binding bond created between the employer and his employee.

Breach of an employment contract:

Breaching an employment contract is the act of breaking any rules or regulations mentioned in the employment contract . It is a highly punishable act to breach an employment contract where the employee is actually risking himself with the job.

For example, An employee breached the contract of employment by not working up to the already mentioned working hours in the contract.

Another example is when an employer is not paying the salary properly which is again the matter of breaching the terms and conditions mentioned in the contract under the section of salary and compensation.

Termination of contract of employment

It means winding up of an employment contract by either the employer or the employee due to some unavoidable and serious reasons. The termination of an employment contract happens when there is a :

• Dismissal
• Layoff
• resigning by employee
• end of the period of contract

The termination of an employment contract may be due to the firing or dismissal done by the employer due to some illegal actions done by the employee that is against the contract of employment(breach of contract of employment). Another reason may be due to the layoff happening in the business environment due to many internal and external insufficiencies occurring in a business like lack of financial funds to provide salary to the employees.

A contract of employment also may get terminated if the employee himself has decided to move away from the job and has signed a resignation(may be due to many health issues and illness), Another mutual way of terminating an employment contract is when the period of job contract has come to its end that automatically wind up the contract.

Example of termination of employment contract:

An employee has given some important and secret data related to his organization to another organization which is an illegal action to do.The employer, when came to know about this terminates his contract of employment by firing him.

Hence the answer.