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The employment relationship can be terminated at the initiative of either the employer or the employee. Termination of employment may be effected by dismissal, by mutual agreement or by . On this page you will find information on the different situations and how you, as an employee, should act.
Termination of employment by dismissal
Both the employer and the employee can terminate the employment relationship. The employee does not need a reason to terminate the employment contract. If the employer wants to dismiss the employee, the employer must have a valid and serious reason under the Employment Contracts Act. The reason for dismissal can be either personal or based on production and economic reasons. A notice of termination must always be given. Read more about the notice of termination.
When an employment relationship is terminated, the employment relationship ends only after the notice period. During the notice period, the normal rights and obligations of the employment relationship continue to apply. For more information, click here.
As a rule, a fixed-term employment contract is terminated without notice at the end of the agreed period or when the agreed work is completed. As a rule, a fixed-term employment contract cannot be terminated. Read more!
The employee and the employer can terminate the employment relationship by mutual agreement. The initiative often comes from an employer who has no grounds for termination under the Employment Contracts Act. Remember that you do not have to sign a termination agreement if you do not want to. Read more.
In a termination agreement, the employer may pay the employee what is known as severance pay. It is worth noting that the termination agreement and the severance pay have an impact on your unemployment benefit. For more information, see the website of the YTK Unemployment Fund.
What to consider if your employer offers you a termination agreement? Read our lawyer’s tips!
Trial period dismissal: termination of employment during the trial period
The employer and the employee may agree on a trial period at the beginning of the employment relationship, during which both parties may terminate the employment contract immediately without cause. However, a trial period may not be terminated on any of the discriminatory or inappropriate grounds listed in the law. For example, the employer’s production and financial challenges do not justify a trial period dismissal. Read more.
Cancellation means that an employment relationship, whether fixed-term or indefinite, is terminated immediately, without notice.
The employer may only dissolve an employment contract with immediate effect for very serious reasons.
The employee also has the right to dissolve the employment contract if the employer breaches or neglects its obligations so seriously that the employee cannot reasonably be expected to continue working even for the period of notice.
It is worth remembering that the right to cancel the employment relationship expires if the cancellation is not made within 14 days of the employee being informed of the grounds for cancellation. Read more about cancellation of employment.
Special situations for termination of employment
The Employment Contracts Act contains some special grounds for terminating an employment contract. Specific grounds for termination include transfer of business, reorganisation, bankruptcy and death of the employer. For more information, click here.
Education tips on the topic
You can also learn more about the topic in the online training library for working life, which is part of your member benefits. To access the courses, you must sign up to the online training library. If you have already taken advantage of your free membership benefit and started using the service, log in and click directly to the trainings from the links below. If you haven’t yet signed up, you can do so in the Webinars and Courses section in the Oma+ service for our members.
The Employment Contracts Act contains a few special grounds for terminating an employment contract. Special grounds for terminating an employment contract include transfer of business (i.e. acquisition), corporate restructuring and bankruptcy and death of the employer.
Sometimes the end of an employment relationship can come as a complete surprise to the employee if the employer decides to cancel the employment relationship, for example during the trial period. The situation can give rise to a range of emotions, but it should not be allowed to discourage you. As a member of the YTK, you will have a lot of support and tools to help you find a new job.Read more!
