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Termination of Annual Employment Contract

Beryl
Member
Thu, 31 Dec 2015 05:39:29 PM  (Last updated: Tue, 05 Jan 2016 11:32:04 AM)
Hi,We have an employee who has over the retirement age and currently employed under contract to be renewed on annual basis. The last written contract renewal given to him was 2010 expired on 2011. We intend to discontinue his contract in his period due which would be middle of 2016 but without a proper written contract stating his renewal period for the past few years, can we still do so?Thank you.
SuharinKL
Contributor
Tue, 05 Jan 2016 11:32:04 AM

Hye there,

Allow me to answer to your query as follows:-

1) If the contract duration is only for a year, then we may assume/regard his employment from 2012-2013 and 2014-2015 as an automatic renewal of his fixed term contract of service;

2) But the above is still subject to the contents of the said contract i.e whether is/are there any clause(s) which may allow for automatic renewal;

3) However, if we are going on the above line of argument, then the existing fixed term contract of employment for the said employee should be 2016-2017. hence, if we want to terminate it in the middle of this 2016, the company need to have a solid reason for the termination or he may lodge a report at the Industrial Relation Dept for unfair dismissal and claim for total salary  for his balance period of contract ie until 31 Dec 2016.

Hope the above clarify your query.

Regards,

suharinsulaiman@gmail.com

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