Termination is one of the most stressful legal events in a person's life, and at the same time one of the most common causes of litigation for companies. The good news for both sides: the rules are clear. The bad news: the deadlines are short and mistakes are expensive. Here is what you need to know, whether you are an employee or an employer.
How can an employment relationship end?
- By mutual agreement: through a written agreement between the two parties. Be careful what you sign: with an agreement you most often lose the rights that a termination by the employer would bring.
- By resignation of the employee: with observance of the notice period.
- By termination from the employer: only for reasons provided by law, divided into personal reasons on the part of the employee, reasons of fault, and business reasons (technological, economic, organizational changes).
- By operation of law or by expiry of a fixed-term contract.
When is a termination by the employer lawful?
The form matters as much as the reason. The termination must be in writing and reasoned, stating the valid ground and an instruction on legal remedy. In dismissals for fault, the employee must as a rule first be given the opportunity to respond to the allegations. In business-related terminations, the employer must observe the selection criteria, and the employee is entitled to severance pay whose amount depends on the years of service.
A termination given orally, without reasoning, during sick leave in cases protected by law, or as retaliation for reporting an irregularity, is a classic candidate for annulment before the court.
What can the employee do?
First, an objection to the employer within a very short deadline from receipt of the decision, counted in days. Then, if the objection fails, a lawsuit before the competent court, again within a short preclusive deadline. Missing these deadlines means that even an obviously unlawful termination remains in force. This is the most common and most expensive mistake we see in practice.
If the court finds the termination unlawful, the employee may seek reinstatement, payment of lost wages and contributions, as well as compensation for damages.
Advice for employers
- Document everything: warnings, employee statements, records. The court rules on evidence, not impressions.
- Follow the procedure to the letter: even a justified termination fails in court if the procedure was skipped.
- Keep employment contracts and internal acts up to date: they are your first line of defense.
- Consult before the decision, not after the lawsuit. One conversation costs incomparably less than a lost labour dispute with all back wages.
Conclusion
In terminations, the prepared side wins. For the employee that means reacting quickly within the deadlines; for the employer, a flawlessly conducted procedure. The same holds for both sides: legal advice in the first days determines the entire further fate of the dispute.
Received a termination, or planning to give one?
We represent both employees and employers in labour disputes. Bring the decision and the documentation to a meeting: we will tell you honestly what the prospects are and which steps are worth taking, before the deadlines expire.
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This text is general legal information and does not constitute legal advice for a specific case. For advice tailored to your situation, consult an attorney.