Fixed-term contract of service
Querist :
Anonymous
(Querist) 23 October 2010
This query is : Resolved
XYZ company hires 5 staff to prepare food for tenants at its hostel. The 5 staffs took a week's sick leave. The company then entered into a fixed term contract with Mr and Mrs smith to provide the food for its tenants.They started their work upon the sick leave of the 5 staffs until the end of a certain period or until the 5 staffs reported back, in any case the maximum period is a month.A lump sum was paid based on the hours they worked.Four days before the end of a month, the person in charge of XYZ gave notice to Mr and Mrs Smith that they don't have to prepare food any more starting the next day onwards as the 5 staffs are back. They appealed in writing to the person in charge, so that they can continue till the end of that month.The person in charge did not give any response. My question is does the contract ended upon the notice given by the person in charge? What action can be taken by Mr and Mr Smith?Does inaction of the person in charge amount to consent to let them continue?Is there any english case law on this?What is the legal consequences if Mr and Mrs Smith did something against the express prohibition given and thus causing some injury to third party on the next day which they were told to not prepare any food anymore?Can XYZ be liable?
thanks.
s.subramanian
(Expert) 24 October 2010
The contract has been discharged by termination notice of XYZ. If the Smiths continue to act it would be unauthorised and if such acts lead to any problem XYZ cannot be made liable. Smiths alone would be liable.
