Termination of Employment


In this article, we will look at the different situations as to why the services of an employee may be terminated.

Summary of Types of Terminations in Asia Pacific

  • Change of contract or constructive dismissal or transfer of employment.
  • Termination with notice.
  • Termination with payment in lieu of notice.
  • Termination for Just Causes
  • Termination for Authorized Causes
  • Resignation with reason and resignation without reason.
  • Termination without notice by employer or summary dismissal or termination for cause.
  • Termination without notice by employee or summary termination.
  • Transfer of business or disposal of the employer’s business.
  • Merger.
  • Dissolution of the partnership where the employer is the partnership.
  • Deemed termination.
  • Permanent and Temporary Closure of business.
  • Relocation of business place.
  • Insolvency or Bankruptcy.
  • Death of either party.
  • Frustration of contract.
  • Breach of contract.
  • Redundancy.
  • Retrenchment.
  • Lay off.
  • Criminal acts.
  • Disciplinary violations.
  • Retirements.

Termination by Operations of Law

  • Insolvency or Bankruptcy.
  • Death of either party.
  • Frustration of contract
  • Breach of contract.

Temporary Lay Offs

An employee is on temporary layoff when an employer cuts back or stops the employee’s work without ending his or her employment (e.g., laying someone off at times when there is not enough work to do). The mere fact that the employer does not specify a recall date when laying the employee off does not necessarily mean that the lay-off is not temporary. Note, however, that a lay-off, even if intended to be temporary, may result in constructive dismissal if it is not allowed by the employment contract.