An employment contract is an agreement signed between employee-employer. It states the responsibilities of the employees, the rights of workers, what the accountabilities are, and what kind of benefits they are liable to from their employer.
Contracts are terminated either on legal grounds or sometimes any of the party face arbitrary dismissal. This termination could be made either by the employer or the employee. Employers dismiss the employee for termination whereas employees resign from the job in the other case.
There could be many reasons behind the termination of the employment contract. However, in case of wrongful termination, the party terminating the contract is legally responsible for paying off compensation to the affected party. Termination of employment contracts could be made as:
Prior to proceeding with the dismissal of the employees, the companies should consult legal advisors to complete the paperwork. Failing to comply with the termination terms stated in the contract or following the general laws would make both parties face legal charges.
Most often, employers terminate the employees if they fail to perform their duties stated in the contract. In case they fail to obey the management orders and break the integrity of working in the company then they are most probable to get terminated. Other causes of employment contract termination by the employer include:
Employers should follow the legal procedures for terminating the employees to save themselves from going to court. Moreover, it is the right of the company to save its material and human assets on legal grounds and follow the terms which are stated in the employment contract.
Employees can also terminate the contract if they are not willing to provide their services anymore to the company. This termination is sometimes made with prior notice whereas some employees stop working without giving notice to the employer. The termination is based on:
Termination by the employees could be made on legitimate terms as well as they can also leave the company wrongfully. In case they have caused any damage to the organization, then the company owner has the right to get compensation before the termination process is completed.
Employees leaving as per the contractual terms can get the end of services to benefit from the employee. Whereas the gratuity terms should be met as per the rules and regulations of Saudi Arabia otherwise the employees are exempted from end-of-service benefit