Termination of employment relationship

The Amendment has further unified the duration of a notice period, which shall be identical for both employee and employer, being at least two months. Only in case the notice is given to an employee who has worked with the employer for at least 5 years, the period of notice shall be at least three months. The mandatory nature of the provision on the notice period has been thereby changed to non-mandatory, whereas only the minimum duration of the notice period is stipulated by law.

The Amendment has modified reasons for giving a notice by an employer if an employee does not meet the requirements stipulated by legal regulations for performance of the agreed work. The Amendment stipulates that the employer may give a notice to an employee if the election or appointment is the prerequisite of performing the function, also in case the employee abdicates from his/her function or is recalled from his/her function, and thus he ceases to meet requirements for performance of function.

A protected period, within which an employer may not give a notice to an employee, is shortened in such manner that the protected period lasts only from arrival at a place designed for spa treatment, and not from its permission.

An employer may terminate an employment relationship with immediate effects if an employee was in breach of working discipline in a gross manner. The employer may terminate a fixed term employment with immediate effects also without giving a reason, however in such case the employee shall be entitled to compensation of wages in the amount of average monthly earnings for the period within which the employment relationship should have lasted. The Amendment entitles the employee to terminate an employment relationship also if his/her life and health is directly endangered.

In connection with severance pay at the termination of employment relationship, the Amendment stipulates that the employer may give a severance pay if the employment relationship is terminated by a notice for reasons stated in Section 63(1) lett. a) to c) of the Labour Code (i.e. organisational reasons and health reasons), whereas it further stipulates that an employee is entitled to severance pay in the amount equal to at least his/her two average earnings at termination of his/her employment relationship provided that he agrees with the termination of employment relationship prior to the beginning of notice period for reasons stated in Section 63(1) lett. a) to c) of the Labour Code. According to the Amendment, an employee who has worked with the employer for at least 5 years shall be entitled to severance pay in the amount of at least three times his average monthly earnings for the notice period.

In the case of invalid termination of an employment relationship, the Amendment stipulates that the employer shall not be obliged to keep on employing the employee even if he/she insists on being employed by the employer, when the court decides that the employer cannot be fairly required to do so.

An obligation of the employee to observe medical treatment instructed by his/her physician in the period in which he/she is entitled to compensation of wages under a special regulation in the case of temporary incapacity to perform work also belongs to the rights and obligations of the employee.

The prohibition of performance of gainful activity in addition to employment without a prior written consent of the employer is extended also to a gainful activity that is similar to the scope of business activities of the employer.

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