Legally, a termination implies an act of bringing a contract to an end. For instance, in a contract of employment, letters of appointment usually indicate how either the employer or the employee may terminate the contract.

An employee may terminate his working relationship with an employer by simply giving the employer a month's notice or any length of notice depending on the agreement between them and likewise the employer may terminate it by giving the required notice. An employee whose employment is terminated is, unlike a dismissed staff, entitled to his terminal benefits.
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