Employment law
33. Fixed-term contracts: Rights to terminate the contract
Termination of a fixed-term contract
A fixed-term contract, like a permanent contract, may be terminated at any time by mutual agreement, recorded in writing and, where applicable, initialled by the inspector.
It may be terminated unilaterally before the end of the term in the following two cases
- Serious misconduct on the part of the employee, at the discretion of the court,
- Force majeure (an unforeseeable, insurmountable event beyond the control of the parties).
Rights upon termination of a fixed-term contract
In addition to any rights already accrued, the termination of a fixed-term contract, whether due to the expiry of the term or force majeure, entitles the employee to a termination payment equal to 2.5 per cent of the wages paid during the contractual period, unless a more favourable clause is provided for in a collective agreement.
NB: In the event of gross negligence, as confirmed by the court, only the employee’s accrued entitlements are payable.