If You Been Terminated* Can a Contract Go Both Ways?

hasher22 on 16/04/2019 - 14:12

Hi,

Just helping a mate digging some info. He's in a 6 month contract with his new job with guaranteed 20 hours per week for his shifts (written in his work agreement). He's planning to quit after 6 months cause I advised him if he quits now, the employer can ask to payout his remaining hours due to the 6 months has been broken. His work agreement does not state any probation time period, but I advised 6 months is usually the norm with probation and prob that's why he's on a 6 month contract.

But… what if the company terminates him for non-illegal reasons such as not performing well, for example if the employer terminates him at 3 months. Can my mate advise the company owes him 3 months pay?

Education & Work

Comments

  • cheapjunkie on 16/04/2019 - 14:21
    +4

    This depends what is stated on the contract. But normally they will only be paid for a notice period ie 2 weeks etc for terminations.This can depend on whether you have worked for a minimum period etc as per your contract.The guaranteed hours do not come into play as that only describes the hours provided while employed with the company.

  • GG57 on 16/04/2019 - 14:40

    Nothing is permanent, including employment.
    The employment agreement should spell out in both scenarios, but the 'guaranteed hours / week' is not relevant.

  • one man clan on 16/04/2019 - 14:55
    +12

    You should probably stop giving your mate advice and tell him to read his contract and/or talk to a lawyer if he's concerned

  • [Deactivated] on 16/04/2019 - 15:01

    You're not going to get paid out 3 months after only working for 3 months.

    You'd be lucky to get paid out 3 days. It's normally 1 week redundancy per year. Exact details vary but 3 month employment definitely does not warrant much redundancy.

  • tsunamisurfer on 16/04/2019 - 15:38

    He's planning to quit after 6 months cause I advised him if he quits now, the employer can ask to payout his remaining hours due to the 6 months has been broken.

    What on Earth does this mean?

    Did you mean the employee can quit and ask for the remainder of expected hours to be paid out?

    • [Deactivated] on 16/04/2019 - 15:41

      I think it is meant to say

      "He planning to quit after his 6 month contract. I informed him that if he quits now, he may be required to compensate the employer for leaving before the contracted term is completed."

      • brad1-8tsi on 16/04/2019 - 15:49
        +2

        That's how I read it too.

        I've never heard of that.

        The contract will have a notice period (usually between 2w-4w). Assuming after 3 months you've accrued 1 weeks annual leave and your contract says 2 weeks notice and you simply walk out they can withhold payment of any outstanding amounts up to 2 weeks pay.

        I'd suggest that the OP doesn't give advice on the subject.

  • Meho2026 on 16/04/2019 - 15:43

    Read this, its legal info from an employers perspective but all relevant.
    https://andreyev.com.au/2016/02/23/fixed-term-employment-con…
    The comment above from one man clan is spot on.

  • Seraphin7 on 16/04/2019 - 16:28

    In short, there will be a notice period written into the contract (usually 2 or 4 weeks). Without going into all the "what if" scenarios, the usual arrangement is that either party can terminate at any time by giving the other party the required notice.

    The employer may choose then to either pay you out for the notice period, or require you to work that period.

    In some instances, and by mutual agreement, the notice period may be shortened.

  • tsunamisurfer on 16/04/2019 - 16:38

    Posted in error

  • elgrande on 16/04/2019 - 17:00

    If your mate quits he definately does not have to pay out 6 months..

    Its the 6 months, plus an additional 2 months for recruitment and 3 months at 50% productivity whilst your friends replacement gets up to speed.

  • garetz on 16/04/2019 - 17:24

    Contract has no probation, you are not an employee but a contractor.

  • [Deactivated] on 16/04/2019 - 19:37

    Do you mean your mate is on a 6-month, fixed-term employment contract ? If so , the advice you gave him is more than likely incorrect. Normally the notice period would be between 1 - 4 weeks.

    But ,please, read the employment contract. It should contain the terms and conditions of employment including the date the contract concludes and the notice periods required. It should also cover circumstances that would allow the contract to be terminated earlier by either party.

  • hasher22 on 16/04/2019 - 20:15

    Just an update:

    • The work agreement is quite poorly written, it's only 1 page and it only includes: duties, pay, minimum hours per week and the 6 month term. No other information such as sick leave, annual leave, other leave, termination clauses, notice periods etc.

    That's why he's worried if he quits 3 months into his work, the employer can withhold pay and ask to pay out his contract per say.

    • POSITIVEVIBESONLY on 16/04/2019 - 22:52

      If the contract doesn't meet fairwork standards on their website, it's won't hold up.

      No other information such as sick leave, annual leave, other leave, termination clauses, notice periods etc.

      That sounds like the contract wasn't written up properly already, you can contact fairwork and ask them for advise.

    • [Deactivated] on 17/04/2019 - 16:41

      How does he get paid? Fortnightly, monthly , at the end of the contract?

Login or Join to leave a comment
Login Join