One of the most important clauses in any employment contract is the Termination Clause. This provision sets out the terms under which both parties may end the employment relationship at some unspecified future point in time.

As an employer, failing to include a provision of this kind can significantly increase your exposure to liability. Specifically, you lose the opportunity to limit the amount of severance an employee can seek upon termination. The absence of an enforceable termination provision results in the dismissed employee being entitled to 'reasonable notice' of termination.