The notice of non-renewal of a fixed-term contract should be used only in the case where the employer does not wish to offer the employee a renewal for his or her employment contract upon expiry.
A few weeks before the expiry of such an employment contract, the employer must give the employee a non-renewal notice in which the date of termination the employee's contract is confirmed, which date is also specified in the employment contract itself.
Upon expiry of the employment contract, the employer must pay the employee any sum that was still owed to him or her on the date of termination of his or her contract, as applicable. This could in particular include any remuneration that is still owed to the employee upon maturity as provided in the employment contract, as well as all fees, bonus and commissions that are still due upon maturity, or even the employee's salary as set out in the employment contract and, where applicable, any overtime and vacation pay to which the employee may be entitled.
In the case where a fixed-term employment contract was signed between the employee and the employer, the employer is not required to give the employee a notice of termination, nor pay the compensatory indemnity provided by the Act respecting labour standards if the employer does not wish to renew his or her contract upon the end of the term thereof.
In the presence of a fixed-term employment contract, the employer must not confuse the non-renewal of a contract that comes automatically to maturity with a dismissal occurring during the execution of this type of employment contract. In the event of a dismissal, the employer may first rely on the provisions of the employment contract executed between the parties in respect of a dismissal during the term of contract, but must at all time comply with the applicable provisions of the Act respecting labour standards concerning the dismissal of an employee, in which case the employer will be subject to the obligation to give a notice of termination of employment to the employee. This obligation of the employer is explained by the fact that a worker bound by a fixed-term employment contract is most often considered an employee within the meaning of the Act respecting labour standards.
Our notice of non-renewal of a fixed-term employment contract is suitable for most situations where the employer does not wish to renew the employee's employment contract upon its expiry.
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