Employment and migration

Cases and grounds for termination

An employment agreement may be terminated (the list is not exhaustive):

• at any time by the mutual agreement of the parties;
• unilaterally by an employee providing two weeks’ written notice or at the initiative of the employer (as discussed below);
• because of circumstances beyond the reasonable control of the parties;
• when the term of the employment agreement expires;
• if an employee refuses to continue working because of a change in the ownership of the company (employer) or its reorganisation (this only applies in relation to certain top executive positions); or
• if an employee refuses to continue working because he/she (together with the employer) is relocated.

The employer may terminate the employment agreement at its initiative only on the limited number of grounds expressly set out in the Labour Code, which include, among others:

• When there is staff redundancy or the employer is being liquidated. The employer must notify each employee in writing at least two months in advance. If there is staff redundancy, the employer must offer employees all available vacancies which are equivalent to or below their current qualifications.
• When an employee is unsuitable for an employment position. Unsuitability must be confirmed by an attestation committee review.
• When an employee systematically fails to fulfil his/her employment duties without reason or commits a single gross dereliction of his/her duties.
• When an employee is found to have presented false documents during the hiring process.

In respect of specific categories of employees (e.g. the general director, teleworkers), additional termination grounds may be provided for in the employment agreement.

The Labour Code requires that severance pay be made under certain circumstances.

Court practice with regard to dismissals varies substantially, and may differ from region to region. However, the general tendency is to protect the interests of employees, thus placing a greater onus on the employer.