3. My previous month’s salary is one month overdue and my boss told me that he is unable to pay it. Has he breached the employment contract? Can I terminate my employment contract immediately and claim compensations?
An employer who is no longer able to pay wages should terminate the relevant contract of employment in accordance with its terms.
If wages are not paid within one month after they become due, then employees can deem their contracts of employment to be terminated by their employers without notice, and are entitled to wages in lieu of notice in addition to other statutory and contractual termination payments.
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