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Employees on family leave have enhanced protection against dismissal. According to chapter 7, section 9 of the Employment Contracts Act, an employee may not be dismissed for exercising his or her right to family leave.
The dismissal of an employee taking family leave is considered to have been due to the use of family leave unless the employer can prove that it was due to another reason (does not apply to termination of employment on personal grounds or e.g. bankruptcy).
As a rule, an employee on maternity, special maternity, paternity, pregnancy, parental or childcare leave may not be dismissed on production-related or financial grounds. Dismissal is possible only if the company’s activities cease completely. If there are grounds for dismissal on production-related and financial grounds, the notice of termination can be delivered to the person on family leave even before returning to work. However, the employment relationship will not end until after the notice period starting from the end of the family leave.
