Terminating employment contracts and arbitrary dismissal

Either party can singly terminate a limited contract provided he complies with the legal consequences of early termination. In case of unlimited contracts, an employment relation is terminated if both the employer and employee mutually agree to terminate the contract, or when either party decides to terminate the contract provided that the terminating party abides by the legal notice requirements and continues to honour his obligations.

In certain situations, an employer or an employee can terminate an employment contract without notice. Arbitrary dismissal takes place when an employer terminates an employee or forces him to resign without any justifiable reasons.




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