An employment relationship may be terminated:
- By mutual consent
- By notice
- By dismissal without notice
An employment relationship may be terminated either by the employee or the employer by notice. The employer may not terminate the employment relationship by notice:
- During pregnancy
- During maternity leave
- During a leave of absence taken without pay for caring for a child
- During any period of actual voluntary reserve military service
- In the case of women, while receiving treatment related to a human reproduction procedure, for up to six months from the beginning of such treatment
(All of the above cases apply only if the employee has informed the employer thereof.)
Employers are required to justify their dismissals. The reasoning shall clearly specify the grounds for termination, and it shall also be authentic and reasonable. Employees may terminate the employment by notice without reasoning.
An employee may be dismissed only for reasons in connection with their behavior in relation to the employment relationship, with their ability or in connection with the employer’s operations.
The notice period shall begin at the earliest on the day following the date when dismissal is communicated; however, some exceptions exist, and they may delay the commencement date.
In the event of dismissal, the employer shall excuse the employee concerned from work duty for at least half of the notice period.
An employee shall be entitled to severance pay if the employment relationship is terminated by the employer.
Severance pay shall be the sum of the absentee pay due for:
- One month, in the case of at least three years
- Two months, in the case of at least five years
- Three months, in the case of at least 10 years
- Four months, in the case of at least 15 years
- Five months, in the case of at least 20 years
- Six months, in the case of at least 25 years
The amount of severance pay shall be increased if the employment relationship is terminated within a five-year period before the date when the employee reaches the age limit for old-age pension.
The employee shall not be entitled to receive severance pay if:
- They are recognised as a pensioner at the time when the notice of dismissal is delivered or when the employer is terminated without succession
- They are dismissed for reasons in connection with their behaviour in relation to the employment relationship or on grounds other than health reasons
Termination without notice
An employer or employee may terminate an employment relationship without notice if the other party:
- Wilfully or by gross negligence commits a grave violation of any substantive obligations arising from the employment relationship
- Otherwise engages in conduct that would render the employment relationship impossible