ENDING THE EMPLOYMENT RELATIONSHIP

END OF EMPLOYMENT RELATIONSHIP Termination can happen By mutual agreement During a trial period At the end of a specified contract period By notice Recission

TRIAL PERIOD Trial period Rescission during trial period Must be explicitely agreed on Can be used in an empl.contract made for a specified as well as an unspecified period Max 6 months employer may extend exceptionally (e.g. employee’s absence due to illness) Rescission during trial period Empl.relation can be terminated immediately by either party Presupposes an objective reason related to the purpose of the trial period Before rescission by the employer the employee must be heard If asked, the reason for rescission must be given in writing (ECA 9:5)

TERMINATION AT THE END OF THE SPECIFIED CONTRACT PERIOD When concluded for a specified period, an empl.relationship comes automatically to an end when the period ends If termination depends on a circumstance known only to the employer, he shall notify in good time The parties may renew the contract either for a new specified period or for an indefinite period Extension may also come about without an express agreement

TERMINATION BY NOTICE Period of notice must be observed by both parties Prerequisites for the employer: Always a proper and weighty reason (persuasive reason) 1. Financial and production-related reason 2. Termination grounds related to the employee's person

Financial and production-related reason “Collective reasons” The work of the employee must have decreased substantially and permanently If possible, the employee must be trained for other duties in the company Re-employment within 9 months of termination if the employer needs new employees

Examples of situations where there are not lawful grounds for collective termination: A new employee is hired for the same job The reason for the termination does not affect the job in question The employee could be trained for another job in the company The savings gained by termination are insignificant => Possibly cases of concealed individual termination

Termination grounds related to the employee's person “ Individual reasons” Employee's serious breach or neglect of obligations Significant changes in the conditions necessary for working

Law gives examples of individual reasons which are not considered weighty: Illness: except if it causes a substantial and permanent reduction of employee’s working capability Participation in a strike Political, religious or other views or Participation in public activities or any association Pregnancy Maternity leave or parents’ leave

Employment relationship of the shop steward can be terminated only If majority of the employees he represents, agree Or If his work has ended entirely

PERIOD OF NOTICE Both parties must observe the period of notice Can be agreed by the parties Max 6 months May not be longer for the employee then for the employer Termination without observing the period of notice: as compensation the party in breach must pay the other party an amount equivalent to the pay for the notice period

PROCEDURE FOR TERMINATING AN EMPLOYMENT CONTRACT BY THE EMPLOYER In many cases must give a warning first Must give the notice personally if possible, included an explanation on the grounds for termination Must provide the employee with an opportunity to be heard If possible, must offer other work If the company applies the Co-operation within Undertakings Act, must observe its provisions in collective termination Unjustified termination => employer's compensation is the pay due for 3-24 months

RESCISSION OF AN EMPLOYMENT CONTRACT Employment relationship ends immediately Both parties need an extremely weighty (persuasive) reason: A breach or neglect of duties based on the contract or the law > essential impact on the employment relationship > it becomes unreasonable to expect that the other party should continue the contractual relationship even for the period of notice The cancellation right lapses in 14 days after the reason has appeared The other party must be heard

AUTOMATIC RESCISSION If employee has been absent from work for 1 week without giving a lawful reason => employer may consider the contract cancelled without any need to notify the employee

CERTIFICATE OF EMPLOYMENT A written certificate on duration and of nature of the work duties must be given on termination