Upgrad LLM

contract employment

A contract for employment with this clause : "This appointment is on contract for a period of five (5) years from the effective date, (Hereinafter “Contractual   Period") subject to renewal year wise based on the annual performance evaluation.  "

 The cessation clause is as follows" Your services may be terminated by the Employer any time within the Contractual Period, with a prior written notice period of 3 (three) months. If you decide to resign from this position, it is mandatory to provide 3 (three) months prior written notice to the Employer.  In case you resign without the required notice, the Employer reserves the right to withhold the equivalent of 3 (three) months of the fixed component of your remuneration. It is hereby clarified that in the event the Employer terminates the employment for reasons not attributable to you in the manner set out in this Clause 4 (a), the Employer shall forthwith pay all amounts due to you."

Under this contract if the candidate is not successful in the performance appraisal can he/or she can be terminated upon completion of the full year . Is it necessary in that event to give the mandatory three months notice as set in the cessation clause. Please advise and clarify.



It is obvious. The principal tenure is 5 years with a notice of 3 months either side, any time. Any time includes the completion of one year and the annual appraisal/review. If this is not successful, termination should cite this reason and still provide 3 months notice



Agreing with Mr. V. Vasudevan;In the case as posted by you the notice period as set out in contract for termination is 3 months.




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