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What is the law of termination of a contract employee?? Can we terminate an employee immediately without notice on the basis of non performance? Please help Siddharth
From India, Raipur
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I hope by contract employee you mean an employee on a fixed-term contract and not an outsourced employee.

A contract employee is also an employee having the same legal relationship with the employer as do the other permanent employees. The only difference is that an employee appointed for a fixed term is not required to be served any notice to terminate his employment on the expiry of the period of the contract. It is implied that if you want to terminate his employment before the date of actual cessation of employment, you are required to give him notice.

An employer who hires an employee, whether on a permanent basis or not, has every right to terminate him if he does not satisfy the required performance standard fixed by the employer. The only thing to be noted is that before such termination, the employer should give the employee an opportunity to improve or he should be given adequate time to prove that he performs well to the expectations. It should not be a termination by victimization. Therefore, he should be given one month's notice or salary in lieu of such notice. In the same way, an employee on a fixed-term contract can also be terminated before his contract ends by offering a salary for one month or giving notice.

Regards,

Madhu.T.K

From India, Kannur
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Outsourced contract employees are not directly reporting you. Their primary employer is the contractor who hired him. So if there any issue, pls report to the concern contractor for further process.
From India, Madras
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Thank you for the update regarding the termination of contractual employees. I would like to inquire about the terms and conditions concerning outsourced employees in the event of termination. Could you please provide me with information on the advantages and disadvantages of being an outsourced employee, as well as vice versa?

I appreciate your assistance in this matter.

Thanks & Regards,
AMU R. SHETTY

From India, Bangalore
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