What does “termination by operation of law” mean?
An employment contract sometimes includes a clause along the lines of “This employment relationship ends by operation of law as of [datum].” This indicates that the contract is a fixed-term contract that automatically ends on the specified date, and that the contract is therefore not automatically renewed. This is separate from the employer’s obligation to provide timely notice that the contract is ending or will not be renewed (unless the contract specifies that this notice also constitutes immediate termination as of the end date). There are also situations in which an employment contract does not terminate by operation of law despite the specified end date. This may apply in connection with the “chain provision” (see our explanation of the chain provision for more information).