notice paycontract terminationLabour Actarbitral award
Tags
fixed term contractnotice periodlegitimate expectationcash in lieu of notice
legislation
Statutes Cited
Labour Act
Labour Act
ai analysis
Case Summary
Key Issues
{"issue_text":"Whether the arbitrator erred in holding that the Appellants were on fixed-term contracts of one year","issue_type":"fact","dispositive":"no","related_facts":"Nature of contracts, extension by one day"}
{"issue_text":"Whether failure to give two months' notice rendered termination unlawful","issue_type":"law","dispositive":"yes","related_facts":"Notice period given (5 days), required notice (2 months)"}
{"issue_text":"Whether payment of two months' pay can remedy failure to give proper notice","issue_type":"law","dispositive":"no","related_facts":"Arbitrator ordered one month's payment"}
{"issue_text":"Whether extension by one day converted contracts to permanent status","issue_type":"law/mixed","dispositive":"no","related_facts":"Contract duration, extension by one day"}
{"issue_text":"Whether Appellants had legitimate expectation of contract renewal","issue_type":"law/mixed","dispositive":"yes","related_facts":"Expansion drive, hiring of new personnel"}
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background
Facts of the Case
Background
The appellants were employed by the respondent on fixed-term contracts of one year. The contracts were terminated with only five days' notice instead of the two months required by Section 12(4)(b) of the Labour Act. The arbitrator ordered payment of one month's salary as cash in lieu of notice, which the appellants appealed, claiming the termination was unlawful due to insufficient notice.
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