Clear Termination Terms

This policy outlines how either party can terminate service agreements professionally and fairly, ensuring smooth transition and clear obligations.

1. Types of Termination

1.1 Termination for Convenience (Client)

Client may terminate engagement at any time without cause, subject to notice requirements and fees outlined in this policy.

1.2 Termination for Convenience (NavNext)

NavNext may terminate with 30 days notice if business circumstances require it, with no early termination fees charged to client.

1.3 Termination for Cause

Either party may terminate immediately for material breach by the other party, including:

1.4 Termination by Mutual Agreement

Both parties may agree to terminate at any time with mutually agreed terms.

2. Notice Requirements

Engagement Type Duration Notice Required
Hourly/Part-Time 0-3 months 7 days
Hourly/Part-Time 3-6 months 14 days
Hourly/Part-Time 6+ months 21 days
Monthly Retainer Any 30 days
Fixed-Price Project Per SOW As per contract
Termination for Cause Any Immediate (0 days)

3. Termination Procedure

Step 1: Written Notice

Terminating party must provide written notice via email to:

Notice must include:

Step 2: Acknowledgment

Receiving party acknowledges within 24 business hours confirming:

Step 3: Transition Planning

Within 3 business days of notice, parties develop transition plan including:

Step 4: Transition Execution

During notice period:

Step 5: Final Settlement

Step 6: Termination Confirmation

Final documentation includes:

4. Early Termination Fees

4.1 Short-Term Engagements (0-3 months)

4.2 Medium-Term Engagements (3-6 months)

4.3 Long-Term Contracts (6+ months)

If contract included discounted rates for long-term commitment:

4.4 Fixed-Price Projects

Termination fees based on project completion:

5. Waiver of Termination Fees

Early termination fees are waived if:

6. Knowledge Transfer Requirements

6.1 Documentation

NavNext will provide:

6.2 Knowledge Transfer Sessions

Number of sessions based on engagement length:

Sessions can be conducted with internal team or replacement resource.

6.3 Ongoing Support

Post-termination support available:

7. Return of Materials

7.1 Client Materials to NavNext

Client must return or ensure deletion of:

7.2 NavNext Materials to Client

NavNext returns:

7.3 Data Deletion

NavNext will:

8. Post-Termination Obligations

8.1 Confidentiality

Both parties continue to maintain confidentiality of proprietary information for 3 years post-termination.

8.2 Non-Solicitation

For 6 months post-termination, client agrees not to directly hire NavNext resources who worked on their project without paying placement fee equivalent to 20% of first-year salary.

8.3 Outstanding Payments

All outstanding invoices become due immediately upon termination, regardless of original payment terms.

8.4 Intellectual Property

Client retains all IP for work completed and paid for. Work-in-progress IP transfer subject to payment for work done.

9. Dispute Resolution Post-Termination

If disputes arise regarding termination terms:

  1. Good Faith Negotiation: 14 days to resolve directly
  2. Mediation: Engage neutral mediator (costs split 50/50)
  3. Arbitration: Binding arbitration as per original contract terms

10. Re-Engagement After Termination

11. Reference and Recommendations

After amicable termination:

12. Special Termination Circumstances

12.1 Company Acquisition/Merger

If client company is acquired or merges, contract can be terminated with 14 days notice regardless of original terms, with no early termination fees.

12.2 Regulatory Changes

If new laws/regulations make continued engagement impossible or impractical, either party may terminate with 21 days notice, no fees.

12.3 Pandemic/Natural Disaster

Force majeure termination with immediate effect, no fees, pro-rated refunds for advance payments.

Considering Termination?

Before proceeding with termination, let's discuss your concerns. Many issues can be resolved through:

  • Scope adjustment or reprioritization
  • Resource replacement or skill augmentation
  • Timeline extension or milestone redefinition
  • Engagement model change (hourly to project-based or vice versa)

Schedule a discussion with our Account Management team

Let's Talk First