Notice of non-renewal of a fixed-term employment contract

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Optimize HR management with key procedures and policies

• The notice of non-renewal of a fixed-term contract should only be used when the employer decides not to renew the employee-contractor's employment contract at the end of its term.
• A few weeks before the contract's expiry date, the employer must give the employee-contractor a notice of non-renewal. This notice will confirm the end date of the contract, as well as the end of the contractual relationship with the company. This expiry date is also specified in the contract itself.
• At the end of the contract, the employer is obliged to pay the employee-contractor all sums still due. This includes remaining remuneration, fees, bonuses, commissions, overtime pay and any vacation pay to which the contractual employee is entitled under the terms of the employment contract.
• In the case of a fixed-term contract, the employer is not obliged to provide a notice of termination or to pay a indemnité compensatrice as provided for in the Act respecting labour standards, if the contract is not renewed when it expires.
• It is essential notto confuse the non-renewal of a contract coming to an end with a dismissal occurringduring the performance of that contract. In the event of dismissal, the employer must comply with the provisions of the contract regarding early termination, and respect the legal obligations regarding dismissal, including the provision of a notice of termination. This obligation exists because an employee on a fixed-term contract is generally considered an employee under the Act respecting labour standards.
• Our notice of non-renewal for a fixed-term employment contract is ideal for the majority of situations where the employer chooses not to extend an employee-contractor's employment contract when it expires.

• For further legal information, please consult our legal FAQ section.

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