MRL3702
Labour Law
, MRL3702 MAY/JUNE EXAM SOLUTIONS
Answers are accurate with in-text references (citations)
, MRL 3702
MAY/JUNE EXAM 2023
MEMORANDUM
QUESTION 1
1.1 Whilst Donkie and Pere agree that an employment contract may be ended
through a dismissal, they are of the view that an employment contract may also be
terminated in other different forms.
Discuss different forms in which an employment contract may be terminated and
give an example of each.
The employment contract can be legally ended through the following methods:
✓ Completion of the contract: This method applies to fixed-term contracts or
contracts with a specific project or event. These contracts have a
predetermined duration or goal, and once the specified time period is over or
the designated task is completed, the employment contract automatically
terminates. For example, a company may hire a contractor for a six-month
period to develop a software application. Once the six months are over and
the application is successfully developed, the contract comes to an end.
✓ Termination by agreement: Termination by agreement occurs when both the
employer and employee voluntarily decide to end the employment contract.
This agreement is typically documented in a written termination agreement or
settlement agreement. The terms and conditions of termination, such as any
severance pay, continuation of benefits, or non-disclosure obligations, are
outlined in the agreement. This method allows both parties to mutually agree
on the terms of separation, which can be beneficial in resolving any disputes
or issues that may arise during the termination process.
✓ Termination on insolvency: In cases where a company becomes insolvent and
enters into insolvency proceedings, ongoing contracts, including employment
