Questions & Answers
The gratuity calculation in case of "discontinuation of an unlimited contract"
Hi,
I have been informed by my employer that they are not going to renew my contract.
They have stated in the letter that "discontinuation of an unlimited contract", and my contract was about to expire on December 20th.
Now, will the gratuity calculation be based on termination or resignation?
I have read on some websites that the gratuity will vary if terminated by the employer.
Dear questioner,
Your employment contract was for a limited or unlimited period?
Did he send you a letter mentioning that they will not renew your employment contract?
If this is the case, it means that your employment contract was for a limited period.
To reply to your question, the end-of-service gratuity will be calculated based on the termination.
In case your employment contract was for an unlimited period, and they did not provide you with a valid reason for termination, you are in an arbitrary dismissal situation and based on the labour law, you are entitled to compensation up to 3 salaries.
In case you need my support, please feel free to contact me via email.
Best Regards,
Raluca Gatina
