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According to the Employment Contracts Act, employers and employees may agree on notice periods. However, most collective agreements restrict this contractual freedom. In general, for example, no right has been granted in an employment contract to deviate from the notice periods of a collective agreement in a way that is detrimental to the employee.
The employer and employee may also agree on terminating the employment relationship without a period of notice, in which case the employment relationship ends at the end of the working day or shift during which the notice of termination has been submitted. The period of notice may not exceed six months.
When the employer and employee have not agreed on another type of notice period or are not obliged, for example, on the basis of a collective agreement to comply with other types of notice periods shall be subject to the provisions of the Employment Contracts Act.
When dismissed by an employer
Unless otherwise agreed, the notice periods to be observed by the employer after the employment relationship has continued without interruption are:
Length of employment
Period of notice
0-1 years
14 days
1-4 years
1 month
4-8 years
2 months
8-12 years
4 months
more than 12 years
6 months
When an employee resigns
Unless otherwise agreed, the notice periods to be observed by the employee after the employment relationship has continued without interruption are:
Length of employment
Period of notice
0-5 years
14 days
more than 5 years
1 month
Calculation of the period of notice
The period of notice begins on the day following the termination. For example, if a 14-day notice period is observed and the employee terminates the employment relationship on the 1st day of the month, the employment relationship shall end on the 15th of the same month.
When the period of notice is calculated in months, the employment relationship ends on the day bearing the same number as the notice of termination was given. If there is no corresponding day in the month in which the period would expire, the last day of that month shall be deemed to be the day of expiry of the notice period.
An employer who has terminated an employment contract without observing the notice period must pay the employee full wages as compensation for the period corresponding to the period of notice.
An employee who has not observed the notice period is obliged to pay the employer a lump sum compensation equal to the salary for the notice period. If compliance with the notice period has only been partially neglected, the liability for compensation shall be the pay for the part of the notice period that has not been observed.
The rights and obligations related to the employment contract are also valid during the period of notice. The employee is obliged to work, and the employer is obliged to pay wages.
Annual leave can be taken during the notice period in accordance with the provisions of the Annual Holidays Act. The employer is not obliged to keep the employee at work during the notice period, but the employee’s rights related to the employment relationship also apply during the notice period. Annual holiday compensation are also accrued during the notice period, even if the employee has no work obligation during the notice period.
If the employer is not obliged to pay wages during the notice period (e.g. the employee is on job alternation leave or study leave), the employee is not entitled to pay during the notice period.
