Employees who work on projects, such as the Commonwealth Games,
often do so on a fixed-term employment contract.
A fixed-term contract operates for a fixed period, for example,
12 months, at which point it ends or can be renewed by agreement.
But what happens when a fixed-term employment contract is
terminated before its expiration date?
Is the employer obligated to pay out the employee?
In short, it will depend on the contract.
If the employment contract contains a clause allowing the
employer to prematurely terminate the agreement, the employer may
only be required to pay the employee any income owed for work
performed, notice of termination and any accrued leave
entitlements. These are often referred to as "maximum
term" contracts instead of "fixed term" contracts,
given they are not truly fixed if one party has the right to
terminate with notice.
