The termination clause is among an employment contract’s essential provisions. It outlines how an employer will handle payment in the case that an employee is terminated. Although there is significant flexibility in the wording of employment contracts, employers still need to make sure that the conditions of employment do not conflict with the employment standards established by law.
Employers should take extra caution when crafting termination regards in employment contracts because the court can declare them invalid if they go against the intent of employment standards and regulations. Contracting out of prescribed employment requirements is often banned. If your contract is terminated illegally, contact the Sattiraju & Tharney employment law firm.
Cost of illegal termination clauses in work contracts
A termination provision that outlines what happens in the case where an employee gets fired will be included in the majority of employment contracts. Furthermore, it might describe situations under which an employee may be dismissed without notice or receive compensation in place of notice. However, it is crucial to make sure that these phrases do not violate any applicable laws.
A termination provision might not be enforceable in its entirety if it attempts to evade the rules and regulations. The parties may agree on a notice time that departs from the required minimums. However, this will only be enforceable if it meets the minimum required employment standards and the language is sufficiently clear to ensure that an employee is aware of their rights both at the beginning and end of their contract of employment.
If not, the worker would be entitled to an adequate period of notice before termination. In other words, workers may agree with their employer to a notice period that exceeds what is needed by law but not any shorter.
What happens if a termination clause is not valid?
An entire termination clause may not be implemented if one or more of its terms are declared invalid. Because of this, the employee might have qualified for common law compensation for salary during the period of notice. Depending on the length of the employee’s employment, the duties given to them, etc., the sum can be significant.
Conclusion
Employers should carefully review the terms of their employment contracts, paying particular attention to the termination provisions. Should the minimal conditions specified by law be broken, the provisions may be void, and the employee may be entitled to expensive pay in place of notice or reasonable notice in lieu of notice.
