To begin, it is necessary to explain what a termination of employment contract is. It is a declaration of will, which results in the termination of the employment contract. It is a unilateral legal act, meaning that for its effect (termination of the employment relationship) to occur, the consent of the other party is not required, only their notification. This is a very important distinction compared to the common, but incorrectly referred to as "termination by mutual agreement."
💡 Key takeaways
- A termination of an employment contract is a unilateral act that does not require the consent of the other party (employer or employee). However, it requires written form and observance of the statutory notice period.
- The notice period depends on your length of service with the company: it ranges from 2 weeks (employment of less than 6 months), through 1 month (over 6 months), up to 3 months (over 3 years). The notice period, e.g. in weeks, ends on a Saturday, and in months – on the last day of the month.
- When terminating an indefinite employment contract, an employer must always provide a genuine and specific reason to justify the termination of the employment relationship.
- The employee, in turn, when terminating their employment contract, usually does not have to provide any reason justifying it (if done with appropriate notice).
A mutual agreement between parties is a voluntary, bilateral contract that terminates an employment contract. Conversely, notice of termination is a unilateral act – we inform the other party of our intention, and they do not need to give their consent.
Termination of an employment contract – what it is, how to calculate periods, and how to correctly justify it
Termination of the employment contract. What is?
A termination of an employment contract is a unilateral legal act, meaning that the consent of the other party is not required to terminate the employment relationship. One party (employee or employer) submits a letter, and the other is obliged to acknowledge receipt. An employee can terminate the contract at any time, e.g. during sick leave or maternity leave. The employer's right to terminate is subject to many legal restrictions (one cannot dismiss someone of pre-retirement age or someone on paternity leave / sick leave).
How to correctly calculate the notice period for an employment contract?
Notice periods depend on the length of employment with a given employer:
- less than 6 months Two weeks (for trial contracts of 3 months, this also applies to 2 weeks),
- at least 6 months 1 month,
- at least 3 years 3 months.
In accordance with Article 30(2)1 Labour Code periods they always end on a Saturday or the last day of the month, respectively.
Example (Month): If an employer gives an employee notice on 2 November, due to the full months rule, the contract and notice period will be terminated on 31 December.
Interestingly, the notice period is also included when calculating length of service. If an employee is dismissed, for example, in mid-June, but before the end of their "current" two-week notice period they have completed six months of work at the company, they automatically gain the right to an extended protection period and a switch to a one-month notice period.
Content of the declaration of termination of the employment contract
Employee's resignation letter:
Must include: place and date, details of both parties, a statement of notice (specifying the notice period applied), and both signatures (of the employee – signifying their intention, and of the employer – confirming receipt of the document). In a standard situation, the employee There is no need to state the reason your resignation.
Dismissal of an employment contract by the employer:
An employer's submission of a document now requires significantly more formalities. In addition to basic details, the employer must include, among other things: the expiry date of this notice period and Notice regarding the employee's right to appeal to the Labour Court (including the designation of the competent court)Failure to provide instructions may result in the employee having the time limit for bringing legal action restored, for example, after several months. Furthermore, it is permissible here to include (an optional) release of the employee from the obligation to perform work, while at the same time sending them on mandatory accrued annual leave.
Termination of an employment contract for an indefinite period
An employer terminating an employee's indefinite-term employment contract is obliged to strictly grounds justifying termination The reason must be specific, described clearly and comprehensively (an abstract "poor performance of duties" cannot be given). Providing vague and false reasons is equivalent to an employer breaking the law (and the employee has a high chance of winning and receiving substantial compensation in the Labour Court).
Example: "Loss of trust" is a common, though risky, reason for an employer. Legally, a mere statement of loss of trust is insufficient. Specific situations and repeated wrongdoings must be cited so that the loss is not based on subjective beliefs. The justification for dismissals is one of the most difficult issues for any company, which is why it is worth consulting a template with a legal professional before issuing the dismissal letter. legal advisor specialising in employment law.
Termination of an employment contract via e-mail
Making such a statement in an email or messenger message for an employee is common practice, however For the legal validity of this notice, a secure, qualified electronic signature is required from the employer. If such a signature is not present on the electronic document (only, for instance, a scanned handwritten signature), such a statement is sometimes considered formally effective, but flawed – and an employee will be able to easily challenge it in court.