11. Termination of contract without notice

In plain English

Either party may end a contract of service without notice, or before notice ends, by paying the other the gross salary for the notice period. For monthly-rated employees with under a month's notice, each day is paid at one day's gross rate of pay. Either party may end the contract without notice if the other wilfully breaks a contract condition.

Summary · Drafted with AI, checked against the official text on 30 Sep 2026.

(1)

Either party to a contract of service may terminate the contract of service without notice or, if notice has already been given in accordance with section 10, without waiting for the expiry of that notice, by paying to the other party a sum equal to the amount of salary at the gross rate of pay which would have accrued to the employee during the period of the notice and in the case of a monthly‑rated employee where the period of the notice is less than a month, the amount payable for any one day is the gross rate of pay for one day’s work.

(2)

Either party to a contract of service may terminate the contract of service without notice in the event of any wilful breach by the other party of a condition of the contract of service.

Terms defined in s 2

contract of service
Defined · s 2
“contract of service” means any agreement, whether written or oral, express or implied, whereby one person agrees to employ another as an employee and that other agrees to serve his or her employer as an employee and includes an apprenticeship contract or agreement;
Open s 2
day
Defined · s 2
“day” means a period of 24 hours beginning at midnight;
Open s 2
employee
Defined · s 2
“employee” means a person who has entered into or works under a contract of service with an employer and includes a workman, and any officer or employee of the Government included in a category, class or description of such officers or employees declared by the President to be employees for the purposes of this Act or any provision thereof, but does not include any of the following:(a)any seafarer;(b)any domestic worker;(c) (d)any person belonging to any other class of persons whom the Minister may, by notification in the Gazette, declare not to be employees for the purposes of this Act;
Open s 2
gross rate of pay
Defined · s 2
“gross rate of pay” means the total amount of money including allowances to which an employee is entitled under his or her contract of service either for working for a period of time, that is, for one hour, one day, one week, one month or for such other period as may be stated or implied in his or her contract of service, or for each completed piece or task of work but does not include —(a)additional payments by way of overtime payments;(b)additional payments by way of bonus payments or annual wage supplements;(c)any sum paid to the employee to reimburse him or her for special expenses incurred by him or her in the course of his or her employment;(d)productivity incentive payments; and(e)travelling, food or housing allowances;
Open s 2
salary
Defined · s 2
“salary” means all remuneration including allowances payable to an employee in respect of work done under his or her contract of service, but does not include —(a)the value of any house accommodation, supply of electricity, water, medical attendance, or other amenity, or of any service excluded by general or special order of the Minister published in the Gazette;(b)any contribution paid by the employer on his or her own account to any pension fund or provident fund;(c)any travelling allowance or the value of any travelling concession;(d)any sum paid to the employee to reimburse him or her for special expenses incurred by him or her in the course of his or her employment;(e)any gratuity payable on discharge or retirement; and(f)any retrenchment benefit payable on retrenchment;
Open s 2