UK Contract Termination Guide
- Contract terminations explained and defined
- Most common reasons for terminations
- Steps to follow when terminating a contract
A guide to contract terminations in the UK
Contract terminations are never easy. So, we put together this helpful guide to help navigate this process more easily. It outlines the different types of contract terminations and the steps involved in conducting one.
Understand the common reasons for terminations
We also review some common reasons behind contract terminations, like breach of contract or redundancy, and what to do in each situation.
Discover the tools that can help
Technology like payroll software can help make terminations less stressful and straightforward by automating statutory redundancy, base pay and PILON calculations.
Download our guide to:
Learn about different types of termination
Ensure your team follows best practices
Discover how tech can help
FAQs
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How can an employer terminate a contract?
As an employer, you should always check you have reasonable grounds to terminate a contract first. Then, you’ll need to write and serve a termination notice, which is normally a written document.
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How much notice does an employer have to give?
At a minimum, employers must give employees at least the statutory notice period. If an employee has worked for you for at least one month, the statutory notice is one whole week. This increases to 1 week for each full year they have worked if your employee has been with you for two years or longer, capping out at 12 weeks for a 12-year period.
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Can you dismiss an employee without warning?
You can only do so in cases where gross misconduct has occurred, such as theft or violence. That being said, you will still need to provide evidence of the employee’s misconduct in order to give them the opportunity to respond before making any decisions.