Our project meant that we had to employ an additional 23 personnel. Now that the project is finished we no longer need the staff. Can we let them go?
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Answer by LegalEagle™ staff, Northcote VIC 3070
- This is a tricky question and depends largely on the terms of any employment agreements that were signed. It will also be relevant whether the employees were independent contractors, ongoing employees or employed under a fixed term contract.
- If an employee working for the joint venture is employed on an ongoing basis by one of the participants this employee retains their position with the participant corporation. Whether you can let the employee go at the end of the joint venture depends on the terms of the employment contract. If this contract stated that they would only be employed for the duration of the project then it is likely that their contract has come to an end.
- If the person was employed under a fixed term contract and that fixed term has come to an end then it is also likely that you can terminate their employment.
- If you are unsure about the terms of the employment contract then it is important you obtain advice about your rights before terminating any employees. There are penalties under workplace law if you fail to abide by the employment conditions or any duties owed to your employees under workplace and employment law.