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Termination

Notice
Are employers required to give notice of termination?

An employer must give notice of termination in the following cases:

  • Where the company is liquidated, the employer should give written notice to the employee no later than two months before liquidation. The same requirement applies in the event of changes in production volumes, economic or technological changes, changes in working conditions and/or redundancies due to industrial necessity.
  • The employer must give notice where the essential working conditions have changed, the employee is no longer suitable for the position or the work or the employee has a longā€term inability to work (if he or she does not come to work for more than 120 successive days or no more than 140 days within a 12-month period because of a temporary inability to work, if the law and other normative acts does not provide that the job and title be preserved for a longer term in case of certain diseases).
  • Where the employee reaches retirement age (unless otherwise specified in the employment agreement), the employer must give notice of termination no later than:
    • 14 days before termination to employees with up to one year’s service;
    • 35 days before termination to employees with between one and five years’ service;
    • 42 days before termination to employees with between five and 10 years’ service;
    • 49 days before termination to employees with between 10 and 15 years’ service; and
    • 60 days before termination to employees with more than 15 years’ service.

Redundancies
What are the rules that govern redundancy procedures?

Under the Labour Code, the employer can terminate the employment contract on the grounds of redundancy if, after considering the employee’s training, qualifications and health status, the employer has offered him or her a transfer to other work and the employee has rejected this offer. If there is no other work to offer the employee, the contract is terminated without such offer. 

Are there particular rules for collective redundancies/mass layoffs?

If an organisation is liquidated or must reduce headcount and at best 10% of the total number of employees are to be dismissed, but no less than 10 employees in a two-month period, the employer must submit data on the number of dismissed employees (together with their professions, ages and genders) to the State Employment Service and to the employees’ representative no later than three months before rescinding the employment contract.

Where mass dismissals result from the bankruptcy of the employer, the employee data shall be submitted to the State Employment Service no later than three days after the court has issued the civil bankruptcy judgment. 

Protections
What protections do employees have on dismissal?

During the notice period the employer must provide the employee with time off to look for a new job (at least 10 % of the notice period). The time off shall be provided in accordance with a schedule proposed by the employee. The employee should retain his or her average wage for this time, calculated based on his or her average hourly wage.

In case of redundancy, the employer shall be entitled to terminate the contract if the employee has rejected the offer of a transfer to other work. In all cases the employer must fully settle its account with the dismissed employee on the day of dismissal.

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