Consequences of early termination of a limited contract by the employee

Question

Q: What are the consequences of breaching a limited contract with both notice period and compensation? Do the employee have to serve the notice period and pay compensation? A: The employee shall compensate the employer by paying an amount equal to 45 days of his wages. Employment ban may be imposed…

Rajasree Ravivarma · Accepted Answer

Dear Questioner,

Please note that there is no concept of notice period for the limited contract. The employee and employer can terminate the agreement under mutual consent or upon the expiry of its term.

The employee shall compensate the employer by paying an amount equal to 45 days of his wages.

An employment ban may be imposed by the ministry directly for not completing the contract period.

Regards,

Rajasree Ravivarma

Questions & Answers