Termination in Employment Relationships – Rules, Protection and Legal Assistance

An employment relationship can end in several ways. It can be temporary, such as through layoff or suspension, or permanent, such as through termination or dismissal. The most common form is termination, either by the employer or the employee.

The employer's termination is subject to strict requirements

While employees are free to resign without special requirements, strict requirements are imposed on employers. These requirements apply to both the procedure and the justification for termination, and the purpose is to protect employees from unfair dismissals.

What makes a termination valid?

A termination by the employer must be professionally justified, which means a documentable and legitimate cause. Justifiable reasons can be related to:

• Business circumstances – for example, downsizing or restructuring.

• Employee circumstances – such as poor performance or cooperation issues.

• Employer circumstances – in rare cases.

It is not sufficient that a new employee could perform better. In cases of termination due to the employee's circumstances, the performances must have been clearly below average over time, despite warnings and opportunities for improvement.

Strict formal requirements protect the employee

For a termination to be valid, it must meet detailed requirements:

• It must be in writing and explicit – vague formulations are not accepted.

• It must be delivered personally or sent by registered mail.

• It must contain information about the employee's rights to negotiation and legal action, as well as the right to remain in the position during a dispute.

• All relevant deadlines must be specified, and the employer must be correctly identified.

• In cases of downsizing, the employer must also inform about the right of priority for new employment.

Extra protection for vulnerable groups

The Working Environment Act provides special protection for certain groups:

• Employees on sick leave have job protection for 12 months.

• Pregnant employees and those on parental leave cannot be dismissed due to these circumstances.

• Individuals in military service are protected from termination due to their service.

This does not mean these groups can never be dismissed, but the grounds must be independent of their situation.

Notice period provides predictability

The usual notice period is one month, but most agreements are three months. In cases of long employment and high age, the notice period may be longer:

• 5–10 years of employment: 2 months.

• Over 10 years of employment: 3 months.

• Over 10 years and age over 50: 4–6 months, depending on age.

Right to remain in position during a dispute

An important protection is the right to continue in the position during a dispute about the validity of the termination, provided legal action is taken within the deadline. This ensures the employee's income and employment while the dispute is ongoing.

Legal assistance can be crucial

Termination cases are often complex and can have significant consequences. Sterk Law Firm has extensive experience in employment law and offers:

• Strategic advice before terminations.

• Assistance during negotiations.

• Representation in legal disputes.

• Assessment of case strength and possibilities for legal aid.

Early legal assistance can prevent mistakes and ensure an orderly process that safeguards the rights of both parties.

Further reading: Dismissal vs Notice of Termination - What is the Difference?.