Termination of employment

Produced by Tolley in association with

Employment Tax

Guidance

Termination occurs every time a contract comes to an end. While dismissal may be the most common and the most important in terms of employee rights and employer obligations, there may be other reasons for termination.

The types of termination are:

•
expiry of a limited or fixed term contract
•
resignation by the employee (with or without notice)
•
mutual agreement
•
operation of law / frustration
•
dismissal by the employer (with or without notice)

See also the Wrongful dismissal and Constructive dismissal guidance notes.

Expiry of a contract

A contract and employment under that contract will terminate when a period specified in a fixed term contract comes to an end or where an event specified in a limited-term contract occurs.

Termination of a contract does not constitute a dismissal at common law but is a dismissal under unfair dismissal legislation and for the purposes of the law on redundancy payments.

Resignation

A resignation is effectively a decision by the employee to terminate their own contract.

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Hannah Freeman

Barrister at Old Square Chambers , OMB, Employment Tax

Hannah is an experienced employment law specialist advising on all forms of discrimination, maternity and paternity rights, unfair dismissal, contractual disputes, part-time working and TUPE. Hannah acts for claimants and respondents in both the public and private sectors, including the NHS, the police, local authorities, educational institutions, financial services and the hospitality industry, as well as providing training and support to in-house legal and HR teams.

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