This may be in case of terminating a contract of apprenticeship; where the period of training expires then the contract will obviously come to an end.
Automatic termination: A contract of employment may be terminated automatically in circumstances such as death or loss of business of the employer.
Termination of employment by the employee/resignation: This happens when an employee due to material breach of the contract by the employer decides to resign from his/her employment.
Termination of employment by an employer: An employer may also terminate the employment of an employee but there is a need to comply with the provisions of the law and contract relating to termination.
On what grounds can a contract of employment be terminated by an employer?
A contract of employment may be terminated by an employer on the following grounds:
By mutual agreement between the employer and the worker (Industrial Training Act, section 13 (1) (a)).
By the employer when the employee dies before the expiration of the period of employment.
By the employer if the worker is found by medical examination to be unfit for employment. Due to sickness or accident the employee becomes unable to carry out his or her work (Employment Act, section 41(1)).
By the employer on the basis of misconduct of employee (Employment Act, section 44 (3))