3. The disciplinary measure should be provided for as an integral part of the contract of employment Warnings and reprimands, demotions or transfers, temporary withdrawal of privileges, fines or deductions from wages, leave without pay, and finally dismissal Termination of employment contract The methods by which an employment contract can be brought to an end: 1. Death or dissolution of the enterprise . At common law, death would bring the contract of employment to an end, whether it is the death of the employee or employer. When death occurs the employee is discharged from further performance, the result of an implied condition that the continued existence of the parties is an essential part of the control. Death terminates the contract. But in practice non human beings that do not die will employ most employees. See Graham’s article, “The effects of liquidation on contracts of service”, 1952 vol. 15, Modern Law Review from page 48 Davis and Freeedman, “The effects of receivership upon employees of companies”, 1980 vol. 9 Industrial Law Journal from page 95
Partnerships: in the case of a partnership where a partner dies and there is a consequent dissolution of partnership the contract of employment will be discharged. But in the case of a company the situation is complex. The position appears to be as follows. 1. First an order of the court for compulsory winding up of a company operates as notice of dismissal to its employees. 2. The effect of voluntary winding up depends on whether the business is to be carried in some form. If the business is to carry on it does not operate as notice of dismissal but if there is not intention to carry then it operates as a notice of dismissal just as in the case of a compulsory order. 3. The appointment of a receiver by the court terminates contracts of employment but the appointment of a receiver out of court by the debenture holders does not have that effect, except in four cases: (i) Where the receiver is appointed to act as agent for the creditors only not for the company (ii) Where the receiver sells the business so that there is not continuation (iii) Where the receiver enters a new contract of employment with the employee in question which is inconsistent with the old one (iv) Where the continuation of the contract of employment is inconsistent with the appointment of the receiver because of the nature of the employment. Frustration of contract
It is a general principle of the law of contract a contract will be terminated automatically if it is frustrated. If circumstances change so completely that performance becomes impossible or leads to a completely different result then it is terminated 1. If the contract is frustrated it is terminated automatically and immediately upon the happening of frustrating event.
- Spring '16
- dickson chuma