I have an employee who is on a contract with an end date of August 31, 2021. We want to terminate his employment for performance, but not for cause. I have heard that because he is on a contract with a defined end date we may need to pay out his complete contract? Is this correct or do we need to follow the employment standards for notice periods? I am in Saskatchewan
Direct from our payroll, expert: Hope this helps. Glenn
You’d have to look at the exact terms of the contract, but SK seems to be an exception to the rule that notice is not normally required for a person hired as an employee with a fixed-term contract.
Subject to what the contract actually says, I would expect the employer is liable for the greater of the remaining contract term and the notice required under the SK employment standards.
For example, if the contract is a simple one that says the person will be employed for XX months, at a fixed salary of YY dollars per month, and there are no provisions for ending the contract before these months expire, then the person is owed the salary for those months.
I would also add that the employee does not have to sue in the courts to have the contract enforced. The SK employment standards can write an order enforcing the payment of any monies owing under a contract of employment.
Alan R. McEwen
Alan McEwen & Associates
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