By reason of the principle of freedom of contract, an employer can summarily terminate an employee’s contract without giving any reason unless of course the employment is specifically protected by statute that requires certain conditions to be in place for termination to be lawful.
Despite the usual freedom to dismiss without reason, a contract of employment will usually stipulate a minimum period of notice to be given (usually one month) before an employment is terminated. In such a case, where the required notice is not given before termination, then the termination will be described as wrongful termination or dismissal. In other words, the employee is dismissed not in accordance with the terms of the contract of employment.
In certain cases, the contract of employment may also require certain grounds to exist (such as following a disciplinary procedure) before termination can take place. Where such ground is lacking, termination will equally be said to be wrongful.
Though usually an employer not need give a reaon for termination, where however one is given, the principles of equity immediately kicks in and the reason comes under scutiny to determine its fairness.
Except for contracts of employments that are protected by statute, the usual remedy an employee can expect in a case of wrongful or unfair dismissal is damages. Where however, the employment is protected by statute any dismissal not in accordance with the laid down requirements will be set aside and the contract will be treated as still subsisting.
