Answer ... An employer may unilaterally terminate an employment contract without prior notice or severance pay in certain cases, including the following:

• The employee has contracted an illness that prohibits him or her from working and does not recover within six months, as substantiated by an official medical report;
• The employee has become at least 75% incapacitated and is unable to work, as substantiated by an official medical report;
• It becomes evident during the probation period that the employee is not sufficiently qualified to perform the work;
• The working conditions of the company call for downsizing, subject to the consent of the minister of labour and social affairs;
• The employee has assumed a false identity or submitted forged documents;
• The employee commits a breach of his or her obligations under the contract; or
• The employee is found liable through a final court judgment for a serious fault causing material damage to the work, workers or production.

Unless provided otherwise by the Labour Law, an employment contract cannot be terminated in the event of a fault committed by the employee, unless such fault has been repeated at least once following service of a written warning by the employer.

Furthermore, an employment contract cannot be terminated due to unsatisfactory performance of the employee’s work, unless the employee continues performing his or her duties in an unsatisfactory manner for a period of 30 days from the date of service of a written warning by the employer with the necessary instructions.

Notwithstanding the foregoing, the termination of an employment contract should not be unfair or abusive.

Answer ... Where termination notice is required, it must be served on the employee at least 30 days prior to the termination date. Otherwise, the employer will be liable to pay the employee compensation equivalent to the wages that would have been due during the notice period.

In case of termination of the contract during the probation period, the employer must serve the employee with at least seven days’ notice.

Answer ... An employee whose employment contract is terminated has 30 days following receipt of the termination notice to challenge this decision before:

• a special committee established on the instruction of the minister of labour and social affairs (the End of Service Committee); or
• the labour court.

If the challenge is not brought within this timeframe, the employee will be deemed to have waived his or her right to challenge the termination decision. Once the employee challenges the termination decision before one of the aforementioned bodies, he or she loses the right to challenge it before the other. However, a decision of the End of Service Committee may be challenged before the labour court within 30 days of the employee’s actual or deemed receipt of such decision.

Answer ... In principle, an employee whose service is ended is entitled to an end of service gratuity equivalent to two weeks’ pay for each year of service, except in any of the following circumstances, in which case no severance pay will be due:

• The employee is sentenced by a final court judgment to imprisonment for more than one year;
• The employee assumes a false identity or submits forged documents;
• The employee commits a breach of his or her obligations under the contract; or
• The employee commits a serious error causing material damage to the work, workers or production.