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Termination

Notice
Are employers required to give notice of termination?

The Advance Notice for Dismissal and Resignation Law requires both employers and employees to give notice. The length of the notice period is set according to the duration of employment, with a maximum of 30 calendar days. An employer can forgo the attendance of the employee during the notice period, provided that it pays the employee in lieu of notice.

Redundancies
What are the rules that govern redundancy procedures?

In general, an employer is allowed to dismiss any of its employees, subject to limitations in the law, the employment agreement and/or any applicable collective bargaining agreement. There are some legal limitations on the dismissal of:

  • pregnant women;
  • women on maternity leave or for 60 days thereafter;
  • women staying in shelters for abused women;
  • men who have been called up for military and/or reserve service;
  • employees on sick leave;
  • employees undergoing infertility treatment;
  • bereaved families; and
  • disabled people.

A hearing process must be conducted before making the final decision about termination and redundancies.

In essence, the same rules apply to redundancy. However, as an employer might face claims that the layoff selection process was affected by some form of unlawful bias or discrimination, it is always advisable to have a fully thought-out and articulated business basis for each decision.

The Employment Service Law obliges employers to notify the Employment Service Bureau in case of the termination of more than 10 employees in the same month. However, this provision is rarely implemented or followed.

A consultation obligation may apply under certain collective bargaining agreements.

Are there particular rules for collective redundancies/mass layoffs?

In essence, the same rules as for termination apply to redundancy. However, as an employer might face claims that the layoff selection process was affected by some form of unlawful bias or discrimination, it is always advisable to have a fully thought-out and articulated business basis for each layoff decision.

The Employment Service Law obliges employers to notify the Employment Service Bureau in case of the termination of more than 10 employees at once or in the same month. However, this provision is rarely implemented or followed.

A consultation obligation may apply under certain collective bargaining agreements.

Protections
What protections do employees have on dismissal?

There are some legal limits on the dismissal of:

  • pregnant women;
  • women on maternity leave or for 60 days thereafter;
  • women staying in shelters for abused women;
  • men who have been called up for military and/or reserve service;
  • employees on sick leave;
  • employees undergoing infertility treatment;
  • bereaved families; and
  • disabled people.

In certain cases termination is forbidden and in certain other cases the employer must seek a permit for termination from the relevant government body.

Further, employees have a right to a hearing before termination. In short, before making the final decision, the employer must hold a hearing with the employee in question in order to allow him or her to state his or her case against dismissal. The rules of the hearing process are set by case law.

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