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There are multiple ways an employment contract can be terminated, for example:
- by resignation
- constructive dismissal
- summary dismissal
- dismissal by the employer
- by mutual agreement
- the expiry of a fixed term
Resignation
An employee can resign from their employment by sending their employer a resignation letter. They must be aware of the notice period before their employment contract will be terminated.
Constructive dismissal
An employee can be constructively dismissed from their employment contract if the employer had created a hostile working environment, and they would not need to provide a notice period or payment.
Summary dismissal
An employer may summarily dismiss an employee without notice or payment in lieu of notice if the employee has committed a serious misconduct.
Dismissal by the employer
An employer could dismiss an employee by giving them a notice period. However, they could give them a payment in lieu of notice period instead, or summarily dismiss their employee without giving them a notice or payment.
Mutual agreement
An employer and employee can agree to terminate an employment agreement by mutual consent.
Expiry of a fixed term
A continuous employment contract is terminated when time has elapsed and the fixed term in the contractual agreement has expired.
For an employer to validly dismiss an employee, termination payments including severance or long service payments that must be paid to the employee when the contract is terminated.
An employer must avoid circumstances where terminating a contract is unreasonable and unlawful, as they may become liable to claims from the employee dismissed.
