I was talking to a friend and he got the following problem

• He employed someone on 12 months contract on a higher than market rate salary
  
• The employee is expected to need time to learn the skill needed
  
• The employee did nothing at all after 3 months. His job scope is stated in the contract and he done none of it at all, even those he's supposed to be able to do
  
• He decided to terminate the salary
  
• The employee was paid only 1 month salary
  
• They had an agreement that he'll get another month of salary
  
• He had gotten only 1/2 of it so far as the company is tight on cash flow
• Claus in contract say contract is void if he did not pay the employee
  
• Claus in contract say either side can terminate the contract with no reason after serving X months notice

The employee has been pestering him for the remaining payment. He has giving his word that he'll pay, and he'll pay him. But not at this stage of his company, where he'll need the money with him for many other things.

So what is my friend liable for?