Understanding Termination Pay for Contract Employees: Notice Pay and Compensation

Hi all,

Kindly guide me on some issues. I have a case regarding a contract employee who was terminated within days of the working period. Should we need to pay notice pay as per the offer clause or not? Also, please confirm if there is any clause under which it is claimed that if an employee has not completed 240 days, then there is no need to compensate.

Regards,
Vish

Vish,

Please follow your HR manual, which should have specific clauses on 'termination'.

Best wishes,
Rajesh

Notice pay will be as per the Appointment Letter issued to the Contract Employee. You have not mentioned the reason for termination. Further, you have not mentioned the termination clause as already stated in the Appointment Letter.