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4.2 Terminating During a Fixed-Term
or Non-Fixed Term Contract
Upon completion of the probation period, the employee has a greater degree of job security, at
least until the expiry of their first fixed-term contract. While the only additional requirement of the
employee is to give the employer one month’s notice if they intend to resign from the position, the
employer has a higher hurdle to overcome when terminating an employee. During a fixed-term
contract, the employment relationship could be terminated either by mutual agreement or by
unilateral termination with lawful causes, the latter including immediate termination situations and
termination with 30 days’ notice.
Termination through mutual agreement
This type of termination occurs when the employer and employee mutually agree to terminate
the relationship. If the termination is put forward by the employer, then the employee is entitled
to severance payment. More often than not, the employer would provide additional money to
the employee to obtain employee consent on separation, and there is no mandatory limit to this
additional money.