Ending an employment relationship is one of the most common reasons employers and employees contact us, and one of the easiest to get wrong. Most problems are not about the law itself but about what was, or wasn’t, put in writing.
1. Check the contract type first
Fixed-term and open-ended contracts end in different ways. Before anything else, find the signed contract and any renewals, and check which one you actually have. If there is no written contract, the relationship is usually treated as open-ended.
2. Notice periods
Notice must be given in writing, and the required period depends on the contract and length of service. Paying salary in place of notice is common, but it should be agreed and recorded.
Key point
A resignation or termination that was never acknowledged in writing is the single most common cause of the disputes we see.
3. End-of-service and final settlement
The final settlement normally covers unpaid salary, accrued leave and any end-of-service amounts due under the law or the contract. Ask for an itemised statement and keep a signed copy.
“A two-page settlement agreement, signed on the last day, prevents most of the claims we are asked to bring a year later.”
4. Put the agreement in writing
A short settlement agreement should state the last working day, every amount being paid, the return of company property, and a mutual release of claims. Both sides should receive a signed copy.
5. When to ask a lawyer
Talk to a lawyer before signing if the employee is senior, if there is a non-compete clause, if a dispute has already started, or if more than one country is involved.
