Termination of Employment – Dismissal with Notice and Summary Dismissal

An employment relationship can come to an end for a variety of reasons and this can be initiated either by the employee (resignation) or by the employer (dismissal) or else due to other external events.

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Some of the reasons for an employment relationship to end include:

  • When the employee resigns voluntarily
  • When there is mutual agreement that the employment should come to an end
  • When the time period, project or event that was included in a fixed term contract is met
  • When the employee is unable to continue carrying out their role due to medical or physical incapacitation
  • When the employment cannot continue due to other external factors (eg: fire, earthquake, flooding …)
  • When the employee abandons the workplace without explanation or authorisation
  • When the employee, or sometimes also when the employer, dies
  • When the company is sold, transferred or goes into liquidation
  • When the job carried out by the employee becomes redundant to the needs of the business
  • When the employee is dismissed with notice by the employer for repeated misconduct or poor performance
  • When the employee is summarily dismissed (ie, without the need for notice being given or paid) for acts of serious misconduct or gross carelessness or incompetence

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The employer can only dismiss an employee and end the employment relationship if there is:

  • A justifiable reason to do so, and
  • Must do so in a procedurally correct manner

Failing in either of these two pre-requisites will considerably raise the risk of you facing legal and financial damages.

Dismissing an employee is never easy and can often be a very stressful and tense time for everyone concerned. This is especially true in small businesses, where personal and professional boundaries often get blurred. You are always advised to seek external assistance and expertise in these situations. We can help you to assess your situation and to ensure you follow the correct processes to help reduce your risks of getting it wrong.

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Guidelines to The Holidays Act (2003)

The Ministry of Business, Innovation and Employment (MBIE) has just published a booklet entitled: Holidays…

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