Termination

Notice

Are employers required to give notice of termination?

Yes, employers and employees must give notice of termination. The employer may choose to indemnify in lieu of notice. An employee who fails to give notice is subject to a one-month salary deduction from their final pay, which companies often waive.

The standard notice period is 30 days, but employers must pay incremental notice of three days per year of work if the employee worked for the company for more than two years.

Redundancies

What are the rules that govern redundancy procedures?

There are no rules concerning redundancy procedures. Redundancy is treated as termination without cause or for convenience.

Are there particular rules for collective redundancies/mass layoffs?

Until November 2017, and in correspondence with relevant case law, companies had to consult with the relevant unions to negotiate the conditions of collective redundancies, including extra severance. However, unions did not have the right to veto such decisions. Companies were only required to enter into negotiations to agree on benefits in an attempt to mitigate any negative social impact. If any union refused to cooperate, companies could seek court mediation or implement an independent benefit package.

The law now stipulates that no consultation or negotiation is required for collective redundancies and mass layoffs. However, it remains to be seen if the courts will refuse to enforce the new provision on the ground that it violates constitutional principles.

Protections

What protections do employees have on dismissal?

Employees are entitled to mandatory severance and other benefits that may be provided in collective agreements. Certain types of employee have temporary protection and cannot be dismissed, except for just cause (eg, pregnant women, employees returning from a work accident, members of safety committees and union officials).

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