Section 27
of Labour Act
Section 27
(1)
A contract shall be terminated —
(a)
by the expiry of the period for which it was made; or
(b)
by the death of the employer or worker before the expiry of the period for which it was made.
(2)
The termination of a contract by the death of the worker shall be without prejudice to the legal claims of any person entitled thereto.
(3)
If the employer is unable to fulfil a contract or if owing to sickness or accident the worker is unable to fulfil the contract, the contract may be terminated with the consent of the Commissioner subject to conditions safeguarding the right of the worker to wages earned, any deferred pay due to him, any compensation due to him in respect of accident or disease, and his right to repatriation.
(4)
A contract may be terminated by agreement between the parties with the consent of the Commissioner subject to conditions safeguarding the worker from the loss of his right to repatriation unless the agreement for the termination of the contract otherwise provides and to the Commissioner being satisfied —
(a)
that the worker has freely consented to the termination and that his consent has not been obtained by coercion or undue influence or as the result of misrepresentation or mistake; and
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(b)
that all monetary liabilities between the parties have been settled.
(5)
A contract other than a contract to perform some specific work without reference to time, may be terminated by either party giving to the other, notice of such termination in accordance with the terms of the contract; the minimum requirements of which shall be —
(a)
where the duration is for more than one month the period of notice shall be not less than 14 days and may be given only after the expiry of the first month of employment; or
(b)
where the duration is for one month or less the period of notice shall be not less than 7 days:
Provided that except where the Commissioner in his discretion shall otherwise permit the period of notice stipulated in the contract shall not exceed one month:
Provided further that an equitable settlement of monetary and other conditions including the question of repatriation shall be agreed upon between the worker and the employer and in default of such agreement either party may refer the matter to the Commissioner who shall make such order, including the award of any subsistence expenses reasonably incurred pending such order, as may be just and equitable.
Cancellation of contract by Commissioner.