Ways to end employment

The most common way to end employment is an agreement between the employee and employer. If the employer wants to part ways with an employee and they cannot agree to sign a termination agreement, the employer must give the employee notice. However, dismissal requires one of the defined grounds:

  • closure or relocation of the employer
  • employee redundancy — be careful: if you dismiss an employee for redundancy, you cannot immediately hire someone else for the same position
  • medical unfitness of the employee to perform the work — supported by a medical report
  • the employee does not meet the prerequisites or performance requirements — the employee must have been informed of these shortcomings in writing within the 12 months before notice
  • repeated minor breaches of the employee's duties (e.g. lateness, smoking in the workplace, breaches of established work rules) — the employee must have been informed of these shortcomings in writing within the 6 months before notice
  • a serious breach of the employee's duties (e.g. unauthorised absence, unauthorised use of the employer's property for personal purposes) — notice is possible without a prior written warning about the breach

In the event of a particularly gross breach of the employee's duties (e.g. intentionally causing damage, being unfit for work due to alcohol or drugs, physically injuring a superior), the law allows immediate termination of employment; a record of the incident must be drawn up

If you give notice to an employee, I strongly recommend having very well-substantiated grounds for doing so. This helps you avoid a possible lawsuit in which the employee challenges the validity of the dismissal. For these situations, free advice for employers and employees is available from the Regional Labour Inspectorate.

Notice can, of course, also be given by the employee for any reason (e.g. the employee has found another job). 

Fixed-term employment ends when the agreed period expires. Finally, it is possible to terminate employment during the probationary period. During probation, you can dismiss an employee without stating a reason (except during the first 14 days of sick leave). Equally, the employee may leave during probation.

Documentation

Every form of termination of employment must be recorded in writing. 

Generally, if you are giving an employee notice, I recommend documenting all the grounds together with supporting evidence. Such evidence might include:

  • work records showing that the employee did not attend work
  • communications with the employee addressing the shortcomings
  • a medical report 
  • a letter informing the employee of their shortcomings in writing (including a dated signature confirming receipt)
  • a report that the employee came to work under the influence of alcohol, a dated breathalyser result, a colleague's witness statement
Service of notice and the notice period

For notice to be valid, it must be delivered to the other party. Delivery may be made in person, in which case the other party's signature on the notice confirms receipt. Notice can also be delivered by registered post with acknowledgement of receipt or data box. The delivery date is then the date the letter or data message is received. If the employee refuses to accept the notice, the law provides for deemed service after 10 days. In practice, if the employee does not collect the letter containing notice, 10 days after the first delivery attempt it is treated as received: legally, the notice has been delivered. 

The day notice is delivered starts the notice period, which must legally be at least 2 months. A longer notice period may also be agreed in the employment contract or an amendment to it. 

Severance pay

The amount of severance depends on the form of termination and the reason. When employment ends by agreement, the amount depends on what the employee and employer agree. 

If an employee receives notice because of redundancy, closure or relocation of the employer, they are entitled to severance equal to:

  • 1 month's average earnings if they worked for the employer for less than a year
  • 2 months' average earnings if they worked for the employer for 1–2 years
  • 3 months' average earnings if they worked for the employer for 2 years or more

If an employee receives notice because of unfitness for work resulting from an occupational accident or occupational disease, they are entitled to 12 months' average earnings. 

Severance is not payable to an employee dismissed for breaches of duties or other misconduct. 

In complicated cases, it is worth discussing dismissal with an experienced employment lawyer. This helps avoid potential court disputes in which you would have to prove that you acted in accordance with the law. 🙂