Once an employee enters into a formal contract with his or her employer, the two parties are henceforth liable to fulfilling their contractual responsibilities by abiding by the terms of the agreement. Nonetheless, there are some situations, which make the fulfilment of the contract almost impossible, resulting in the need for terminating the contract. In this case, the employee should make it clear that he or she will not be working for the organization (Clarke, web). The employee will need to do this in proper writing, and give the right amount of notice before leaving the job, in agreement with the law. On the other hand, the employer terminating the contract through dismissal should ensure that there is substantial evidence to serious allegations of theft, violence, or fraud committed by the employee (Moffatt, 70). In the case of Hotel Lux and Chef Perlee, Perlee was the one who terminated the contract, and there seem to be no serious issues of fraud or theft.

As such, Perlee should have given the hotel management a notice for his resignation and made sure that he did not go against the stipulated terms of the contract, by waiting for one year without employment. Chef Perlee had all the rights to terminate the contract if the disagreement with the management made the performance of the contract terms impossible, but he was still bound to other aspects of the agreement. The contract did not allow him to get employed by another employer for one year if he chose to leave his job at Hotel Lux. Consequently, being employed by another hotel before the one-year period is over made Perlee breach the contract, and Hotel Lux and the legal support for preventing Perlee from working in the other restaurant.

Conclusion

Therefore, before terminating any contract of employment, both the employee and the employer must consider the provisions of terminating the contract as well as the legal obligations on contracts.

Works Cited

Clarke, Jennifer. “Terminating Contracts of Employment – Legal Issues.” Employment Law Seminars and HR Training. N.p., 2015. Web. 2 June 2015.

Moffatt, Jane. Employment Law. Oxford: Oxford University Press, 2011. Print