HR Tip: Ending a fixed term contract

HRD & Payroll Solutions continues to bring HR Zone members a range of HR and payroll tips in 2006. A market leader in the provision of HR and Payroll training and nationally recognised professional qualifications, HRD & Payroll Solutions are highly experienced in teaching about common HR and payroll problems. A wide selection of tips, tricks and guidance can be seen below. HR Zone highly recommends that any tips are taken as a starting point for guidance only.

Question: "Can I end a fixed term contract prematurely?"

HR Tip:
A fixed term contract may include a clause giving either or both parties the right to terminate it before the expiry date by giving due notice. In the absence of such a clause, if you terminate the contract prematurely you are open to an action for breach of contract. The employee would be awarded net pay plus the value of any quantifiable lost benefits for the unexpired period though a court would expect the employee to take reasonable steps to mitigate any loss by seeking alternative employment, and might reduce the amount of compensation to reflect that.

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