Termination of an employment contract – what do you need to know?
Every employee, as well as the employer, has the possibility to terminate the employment contract. Inflation is increasing day by day and our salaries are not increasing enough. Many people may decide to leave their jobs during this period. It is useful to know your basic rights and responsibilities. What are the types of notice of termination of an employment contract? What is the notice period? Find out what you need to know about termination of employment.
TABLE OF CONTENTS
- What constitutes termination of an employment contract
- Types of notice of termination of employment
- Period of notice of termination of an employment contract
- How do you calculate the notice period for an employment contract?
- Extending or shortening the notice period
- Appealing against dismissal
- Compensation for termination of employment
- Notice of termination of employment 2023 – changes
- How to write a notice of termination of employment?
- Termination of employment contract – template
What is the termination of an employment contract
A notice of termination of employment is a document that is submitted to terminate employment at the end of the notice period. It can be submitted by the employer or the employee.
Types of notice of termination of employment
Termination of the employment relationship according to the Labour Code may occur when:
- The term of the contract has expired
If the employment contract has been made for a fixed term, termination takes place on the agreed date. It is then not necessary to give notice. The employee can leave his/her job on the date of termination.
- Termination of the employment relationship
This happens when the employee or the employer dies. It also expires if the employee does not show up for work for 3 months due to pre-trial detention.
- Termination by mutual agreement
This type of termination is the most favourable for both parties. However, it requires the consent of the other person. Both the employer and the employee can end the employment relationship in this way. The employee is then not entitled to paid time off to look for work.
- Termination with notice
Both the employer and the employee are entitled to this. It is also a beneficial way of terminating the contract for both parties. The employee has time to find new employment.
- Termination without notice
This is known as disciplinary dismissal, or discipline. The least pleasant way of termination. It occurs most often as a result of a breach of the employee’s duties. The employer can only submit a termination in certain cases. According to the Labour Code:
Art. 52. § 1. of the Labour Code, the employer may terminate the employment contract without notice through the fault of the employee in the case of:
- a grave breach by the employee of his/her basic duties,
- committing by the employee during the term of the employment contract an offence which makes it impossible to continue employing the employee on the position held, if the offence is evident or has been established by a final judgment,
- the employee’s culpable loss of the qualifications necessary to perform the work in the position held.
Disciplinary dismissal is also imposed if the employee no longer comes to work at all. The employer will then enter the reason for the dismissal in the employment certificate, and the consequences can be serious. Such information will forever already be recorded in the employment history.
Period of notice of termination of employment
The length of notice of termination of an employment contract depends on the type of contract signed and the time of its conclusion.
The length of notice of termination of an employment contract concluded for an indefinite period:
- two weeks – in case the employee has been employed for less than 6 months
- one month – in case the employee has been employed for more than half a year but less than 3 years
- three months – where the employee has been employed for more than 3 years
Length of notice of termination of a probationary contract:
- three days – if the employee has entered into a contract for less than 2 weeks
- one week – if the employee has concluded a contract for more than 2 weeks but less than 3 months
- 2 weeks – if the employee has a contract for 3 months
Read also: Does work guarantee a person’s happiness?
How do you calculate the notice period for an employment contract?
The notice period is calculated by the Labour Code in months, weeks and days:
- Notice period in months
Notice of termination is counted on the first calendar day of the following month after the notice of termination is given.
Example: If an employee gives notice on 15 March, the notice period will start on 1 April and end on the last day of the month.
- Notice period in weeks
Notice of termination is counted from the first Sunday following the giving of notice. Its period ends after 1-2 weeks. Saturday is always treated as the last day of the notice period.
Example: If an employee gives notice on 8 March, the notice period will start on 12 March. It will end after 2 weeks. The last day of the notice period is Saturday 25 March.
- Period of notice in days
Notice of termination is counted from the first day of service. Note, however, that the 3-day notice period only applies to a contract with a probationary period of 2 weeks.
Example: If an employee on a probationary contract for 2 weeks gives notice on 7 March, the notice period will start on 10 March.
Extension or reduction of the notice period
Where an employee is materially responsible for some property, the parties may agree that the notice period is:
- one month (if the employee has been employed for less than six months)
- 3 months (if the employee has been employed for more than six months)
If the employer gives notice to the employee for reasons beyond his control, the notice period may be reduced from 3 months to 1 month (Art.
361§ 1 of the Labour Code).
When the notice of termination is given following an agreement between both parties – they can agree on an earlier termination date.
Appeal against termination
An employee has the right to raise an appeal when an employer gives him or her an unjustified termination notice. The employer may not terminate the contract if:
- the employee is pregnant and on maternity leave,
- the employee is a protected trade union activist,
- the employee is on leave,
- the employee has at least 4 years to reach retirement age.
The appeal must be brought before the labour court. Its effect can be the payment of compensation or reinstatement. For this to happen, the court must find the dismissal to be unjustified or unlawful.
Compensation for termination of an employment contract
For unjustified termination, the labour court may award compensation to the employee. Its amount is regulated by the Labour Code. It is an amount equal to the amount of salary from 2 weeks to 3 months. The employee’s period of employment also includes the period without work.
Termination of employment contract 2023 – changes
In 2023, there will be changes to the Labour Code related to termination of contract. What will change?
It will be important to give written notice of termination of a fixed-term employment contract.
The scope of claims of employees dismissed on notice of termination of employment will be expanded.
Termination of a fixed-term employment contract will require notification of the trade union at the school
How to write a notice of termination of employment?
The basic elements of an employee’s notice of termination of employment are:
- Date and place,
- Contact details (name, address)
- Employer details
- Company address
- Title of letter
- Details of employment contract
- Reason for leaving your job (optional)
In the case of termination by the employer, include:
- the reason for termination of the contract when it is for a fixed period,
- the right to appeal to an employment tribunal.
Termination of employment contract – model
- Template for termination of employment by mutual consent:
- Template for termination of employment without notice:
- General template for termination of employment:
Read also: Compensation for annual leave