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Cannot dismiss without reason even if written in agreement

An employer cannot terminate employment without justification by simply giving written notice of termination, even if that is provided for in an employment agreement.


Question
  • My employer recently gave me an employment agreement to sign which says that either party may terminate the agreement by giving one months written notice to the other.

  • Does this mean that my employer can terminate my employment without cause by simply giving me one months notice in writing?

  • If my employer were to give me notice, would this be a dismissal?


Answer
  • A dismissal is a termination of employment at the initiative of the employer.

  • Accordingly, if your employer was to give you notice of termination, it would be a dismissal because your employer is responsible for your employment coming to an end.

  • The Employment Relations Act prohibits employers from dismissing employees unjustifiably.

  • This means that your employer must have a justifiable reason for dismissing you such as serious misconduct, poor performance, or redundancy.

  • Your employer cannot end your employment without justification by simply giving you one months written notice of termination.


More on Employment Agreements

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  More on secret video cameras   Appeal Court decision on harsh and oppressive contracts
  When is an employment relationship formed?   Employment contracts must be negotiated - they cannot just be presented
  Employer can still be bound by oral agreements   Discrimination for being on collective employment contract
  Common problems with employment agreements   Cannot limit remedies for personal grievances
  Take care when preparing employment agreements   Cannot dismiss without reason even if written in agreement
  Importance of disclosing correct employer   Can a collective employment contract negotiated with union members be applied to non union members?
  Disputes resolution procedure must be included in staff agreement   Employee must disclose information at interview only if asked
  Renegotiation of employment contract on sale of business   Cannot require all employees to apply for new positions
  Expired contracts continue with same terms and conditions   What an offer of employment might look like
  Alphabetical Index   Case Law Back to top
This article originally written by Alan Cressey the copyright of which is owned by The Evening Post
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Updated: 31st March 2010
Published: 22nd December 2003
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