Difference between non-renewal and termination of labour contract

Question

Q: My current labour contract will expire on 21 Jan 19. I have informed my company not to renew my contract on 30 Dec. They say that I need to provide 3 months' notice… A: You are obliged to serve a notice period only if you were terminating. You are choosing not to renew your labour contract…

Hari Wadhwana · Accepted Answer

Dear Sir/ Madam,

Thank you for getting in touch with me on this and for providing me with a wholesome query.

Please note that in your case notice period will not be applicable as you are not "terminating" the contract but merely "not renewing" the contract.

You are obliged to serve notice period only if you were terminating your contract before the completion date (e.g. terminating the contract in August 2018, then three months' notice period is applicable), but here you are choosing not to renew your labour contract.

You will find in Article 113 (2) of the Federal Law No. 8 of 1980 that "An employment contract shall terminate in any of the following cases:

2. Upon expiry of its term, unless it has been expressly or implicitly extended according to the provisions of this Law; ".

Hence in your case, you have acted in good faith and informed them on 30th December 2018 about your decision to not renew your labour contract.

Please forward me your labour contract for confirmation about the notice period.

I trust you will find this helpful.

Regards,

Hari Wadhwana

052-9495731

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