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In: Operations Management

Briefly discuss the breach of the employment contract and the termination of the employment contract. Explain...

Briefly discuss the breach of the employment contract and the termination of the employment contract. Explain the difference and also give practical examples.

Solutions

Expert Solution

ANSWER:

BREACH OF CONTRACT:

  • Breach of contract means refusal or failure of any one party to perform his contractual obligations under the contract.
  • Any party to the contract fails to perform his duties.
  • In case of breach of contract, the one party who refused to perform his obligations is known as default party and other party is known as aggrieved party.

TERMINATION OF CONTRACT:

  • Termination of contract means ending up the contract.
  • A contract is said to be terminated or discharged when the rights and obligations created by it are distingushied.
  • A contract can be terminated in any one of the following circumstances:
  1. Termination by performance.
  2. Termination by agreement.
  3. Termination by operation of law.
  4. Termination by breach.
  5. Termination by lapse of time.

EMPLOYEMENT CONTRACT:

  • It is a contract between Employer and Employee.
  • In employment contract it is agreed that the Employer will employ the Employee.
  • The Employee will work for the Employer on the terms and conditions which are given below:
  1. Job title.
  2. Continutity of employment.
  3. Hours of work.
  4. Place of work.
  5. Payment.
  6. Holidays etc.

BREACH OF THE EMPLOYEMENT CONTRACT:

  • A contract of employment is legally binding agreement between two parties the
  • employee and employer.
  • A employment contract is said to be breached when either employee or employer breaks the terms of the contract.
  • We can say that when one party refuse to perform its obligations under the contract is known as breach of employement contract.

TERMINATION OF THE EMPLOYMENT CONTRACT:

  • Termination of the employment contract refers to end of an employee's contract with a company.
  • Either an employee or employee can decide to terminate the contract of employment.
  • Termination of the employment contract happened when an employee's departure from a job.
  • Termination of cthe employment contract may be voluntary by the employee, or it may be at the hands of the employer.

Difference between the breach of employment contract and the termination of the employment contract.

Basis of difference Breach of the employment contract

Termination of the employment contract

Meaning

A employment contract is said to be breached when either employee or employeer breaks the terms or condition of the contract.

A employment contract is said to be terminated when both the parties performs their obligations under the contract.

Performance In breach of contract the one party either employee or employer fails or refuse to perform his legal obligations under the employe contract act. In the termination of the contract both parties perform their duties and obligations as required by the contract.
Breach Breach of employment contract occurs if one party makes it impossible for the other party.

The parties may terminates the contract if a court finds that the breach is material such that is caused damages and loss to the both parties either employer or employee.

Consent The one party either employee or employee breach the contract of employment without consent of other party. The both parties to the employment contract may agree or give their consent to terminate the contarct as soon as obligations are met and extingushied.
Fraud The breach of employment contract takes place by law when one party is engaged fraudlent activities.

The termination of contract when both parties engage in misrepresentation of facts.

NOTE:

  • In the above, meaning of breach of contract, termination of contract
  • Meaning of breach of the employment contract ,termination of the employment contarct.
  • THhe difference between breach and termination of the employment contract is explained in detail.

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