Most faculty contracts run for the full academic year. This serves a good purpose, as the contract is intended to "lock them in"—i.e., to give both the teacher and the school comfort that they will be in the classroom for the full year (maintaining continuity of instruction for the students). Many contracts don't address, however, what happens if something goes wrong—i.e., if the teacher's behavior or performance declines so rapidly that removing him/her mid-year becomes a necessity for the school (admittedly an infrequent but always-painful situation).
The Issue—If the contract is "silent" on this point, most courts would assume that the school has the right to remove the teacher from the classroom but must pay them for the full term of the contract nevertheless. If it is the school's intent to pay out the full contract value to the teacher (i.e., keep them on payroll through the end of the academic year), then there is no controversy. However, if the school would not intend to pay out the full contract, being silent on this point definitely presents a problem—and the school would be on the losing end of this argument in most cases.
The Remedy—If the school doesn't intend to pay an employee in full if he/she is terminated mid-year, the contract should indicate that, "If the employee resigns or is terminated for reasons permissible under this contract, the employee will be paid for all time-worked but will not receive pay or benefits beyond the last day worked." Alternatively, some schools choose to write in a mini "severance" benefit of 7, 14, or 30 days pay in the event of a mid-year termination—which may be the best alternative, as it limits the school's pay liability while also softening the blow for the employee (and decreasing the likelihood of an employment lawsuit).
The Human Resources Life Cycle: Safe and Effective Faculty Recruitment, Retention, and Dismissal Practices
Sample Employee Handbook: Policies for Private-Independent Schools
