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Termination

Notice

Are employers required to give notice of termination?

As a rule, permanent employment agreements cannot be terminated by simply giving notice to the employee. Terminations follow a proper procedure strictly established by the Labour Code.

However, for fixed-term employment agreements, the employer must serve notice to the employee with 15 days’ notice. For fixed-term employment agreements concluded for the duration of a certain task, activity or temporary need, there must be a minimum notice of seven, 30 or 60 days (depending on the duration of the agreement being up to six months, between six months and two years or longer).

In addition, the termination of an employment agreement during the trial period must comply with a seven or 15 days’ notice requirement, if that trial period has lasted more than 60 or 120 days, respectively. In this case, if the required advance notice is not given, the employer will have to pay compensation corresponding to the missing notice period.

In redundancy procedures, the employer also has to comply with a certain notice period after issuing the final grounded decision for the redundancy.

Redundancies

What are the rules that govern redundancy procedures?

Redundancy procedures (terminations for business-related reasons based on market, structural or technological grounds) must follow a complex procedure.

Employees made redundant are entitled to compensation, the amount of which depends on the employee’s length of service.

Are there particular rules for collective redundancies/mass layoffs?

Yes, redundancies can be individual or collective with different applicable rules.

‘Collective redundancy’ is defined as successive or simultaneous termination of employment agreements over a three-month period by the employer, affecting at least two or five employees, depending on the size of the undertaking – two if the employer is a company with fewer than 50 employees and five if the employer is a company with more than 50 employees.

Protections

What protections do employees have on dismissal?

Employees affected by dismissal procedures triggered by the employer are legally entitled to compensation.

The following enjoy additional protection against dismissal:

  • employees who are pregnant;
  • employees who have recently given birth;
  • employees who are breastfeeding;
  • employees who are on parental leave; and
  • employees’ representatives.

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