The Legal Consequences of Arbitrary Termination of An Employment Contract

A Comparative Study

Abstract

The Terminating an employment contract arbitrarily is considered one of the most prominent issues in labor law, due to its profound effects on society from various social, economic, and political aspects. The importance of this topic is noticeably increasing because of its direct connection to the conditions and livelihood stability of families.
Contract termination is regarded as one of the most severe disciplinary penalties that an employer can impose on an employee, and the harshness of this penalty intensifies when termination occurs without a justified reason or based on an insufficient reason, that is, in an arbitrary manner. Therefore, it becomes necessary to provide procedures that allow the employee to defend themselves and protect them from the risk of arbitrary termination. These procedures include giving the employee prior notice of contract termination, in addition to imposing administrative and judicial oversight over the termination decision. Fundamentally, these procedures constitute legal safeguards established by the legislator to protect the rights of the employee.