Dissolution by Notification Clause Samples
The Dissolution by Notification clause allows one or both parties to formally end an agreement by providing written notice to the other party. Typically, this clause specifies the required notice period—such as 30 or 60 days—and outlines the method by which notification must be delivered, such as by email or registered mail. Its core function is to provide a clear, structured process for terminating the contract without cause, thereby reducing uncertainty and ensuring both parties have adequate time to prepare for the end of their contractual relationship.
Dissolution by Notification. Party A is entitled to dissolve this Contract if any of the following occurs, provided that it shall notify Party B thirty (30) days in advance and providing Party B with economic compensation as per the national criterion;
7.4.1 After completion of medical treatment for a disease or an injury that is not work-related, Party B is unable to resume its original work or other work assigned by Party A;
7.4.2 Party B is incapable of performing its duties and still can not do the work after training or transfer to a different position;
7.4.3 A major change as described in Article 7.5 herein in the objective circumstances pursuant to which this Contract was entered into has rendered this Contract incapable of being carried out and the Parties have failed to reach agreement on the amendment of the Contract; Where a major change in said objective circumstances has rendered this Contract incapable of being carried out, and therefore one of the Parties requests to amend the relevant provisions, such amendment request shall be sent to the other party in writing; the other party shall reply within 15 days, and it shall be deemed that the other party has not agreed to amend the employment contract if no reply is received within said period; or
7.4.4 When Party A needs to cut employment due to any one of the following circumstances, it shall explain to the trade union or all the employees 30 days in advance and learn to their opinion and report to the administrative departments of labor and social insurance before Party A lays off Party B and dissolves this Contract with Party B:
(a) Party A is near bankruptcy and in a period of legal restructure;
(b) Party A relocates itself to prevent and cure industrial pollution; or
(c) Party A incurs grave difficulty in its production and operation. If Party A that has cut the employment according to the provisions of this article and then seek recruits within six months, priority shall be given to employees being formerly laid off.