Termination of an Employment Contract

Get information on labour laws about termination of an employment contract at workplace in South Africa. Know more about grounds for termination of an employment contract
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 A contract of employment can be terminated on the following grounds:

  • On expiration of the agreed period of employment
  • On completion of the specified task
  • By notice duly given by either party
  • By summary termination in the event of a material breach on the part of either party
  • By repudiation (to reject the value or authority of the employer or employee)
  • By mutual agreement
  • By death of either party
  • By the insolvency of the employer
  • By the supervening impossibility of performance, where either party becomes permanently unable to perform his/her obligations in terms of a contract

Note: A contract may not be terminated in the absence of a justified reason.

The LRA expressly recognises the following grounds for termination of the employment contract:

  • Misconduct on the part of the employee
  • An employee’s poor work performance and/or incapacity
  • The operational requirements of the employer

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