This common law contract of termination replaces a common law contract of service (employment contract) for an important member of staff. It assumes that the employer paid a special (significant) hiring fee to the new recruit to "come on board". Because this was a large amount, it expected certain benefits to the employer, including extended loyalty, confidentiality, and restraint of trade, and it required certain remedies if these were not delivered. This contract of termination therefore seeks to remind the previous employee of his/her obligations and promotes a clear understanding of remedies available to the employer if these are not strictly adhered to.
H-3079Termin_2.doc"Common law contract of termination" which replaces a "common law contract of service" (employment contract) for an important member of staff.
