Restructuring legislation

An employer who wants to terminate an employment contract has to inform the affected worker accordingly. There are no legal regulations regarding the form or content, and the employer also does not have to provide a justification for the dismissal. An agreement of the employee is not required for the effectiveness of the termination. As of October 1, 2021, the notice periods for blue-collar workers were aligned with those for white-collar workers.

The provisions of Section 1159 of the Austrian Civil Code (ABGB) in the new version apply to all terminations of employment after September 30, 2021. No distinction is made here between new and existing employees.

The termination provisions for blue-collar workers have been largely adapted to those for white-collar workers. Accordingly, an employer's notice period of 6 weeks now also applies to workers in the 1st and 2nd year of employment, 2 months from the 3rd year of employment, 3 months from the 6th year of employment, 4 months from the 16th year of employment and 5 months from the 26th year of employment.

Not only have the notice periods been adjusted; new termination dates must now also be respected by the employer. According to the statutory provision, notices of termination can only take effect at the end of a quarter. As is the case for salaried employees, however, the 15th and the last day of a calendar month can also be agreed as termination dates. If the applicable collective agreement already contains such a provision, there is no need for action here. Accordingly, numerous collective agreements already contain provisions tailored to the new legal situation, which must be taken into account. However, if this is not the case, a corresponding contractual agreement is urgently recommended for both new and existing employees.

In the future, a one-month notice period to the end of the month will apply to terminations by employees. However, a longer notice period of up to six months may be agreed (as for salaried employees). It is important to note that the notice period to be observed by the employer may not be shorter than the notice period agreed with the employee.

Employers are required to notify their workforce 30 days in advance of implementing collective dismissals (that is, within 60 days, dismissals of at least 10 workers in companies with 20-99 employees, of at least 10% of the workforce in firms with 100-299 workers or at least 30 dismissals in companies with 300 or more staff). This period can be extended up to 60 days upon request from the trade union.

During the 30 day collective dismissal notification period, the employer is prohibited from dismissing the employees included in the collective dismissal notification. After and in addition to this period, the conventional notification periods apply to individual employees.

Individual notice of termination is valid only if it is in writing, specifying the commencement date and the duration of the period of notice. When the employer gives notice, the statement must be sent by registered mail or be communicated in writing by a process server.

Each employee, regardless of being white or blue collar worker, has a fixed notice period in case of the unilateral ending of a work agreement of an indefinite nature. Fixed-term contracts can only be ended (since 2014) in the first half of the contract (up to six months) through a one-sided notification of either the employee or employer. In this case notification periods similar to the indefinite nature contract apply. It is not possible to alter the duration of the period at sectoral level; it is however possible to increase the period at individual or company level.

The duration of the notice period depends on several elements as can be seen below:

Duration of notice period for the first 5 years of employment:

A new law dated 20 March 2023 states that the maximum notice period for an employee who joined the company before 1 January 2014 may now not exceed 13 weeks when the employee decides to resign. This ceiling will apply to both blue-collar and white-collar workers. Finally, the special provision providing a maximum notice period of 4.5 months or 6 months for senior white-collar workers will be abolished.

Labour Code Article 326 (2) defines that the notice period for termination of a permanent contract is 30 days, unless the parties have agreed on a longer period, but not more than 3 months.

The notice period for termination of fixed-term contracts is 3 months but not more than the remaining term of the contract. Termination of the activity of the company, partial closure of the enterprise or dismissals are among the reasons why the employer is obliged to issue a written notice to the employee for ending the contract.

Labour Code Art. 328 (1, 2, 3)

According to amendments to the Labor Act (NN 151/22), there were significant changes in Article 121, which stipulates the notice period to employees, although the main meaning has been retained. The notice period begins on the day on which the written notice of termination of the employment contract is delivered to the employee. The notice period for a worker who is temporarily incapacitated for work at the time of delivery of the decision on dismissal shall start from the date of cessation of his or her temporary incapacity for work. The notice is suspended during the following circumstances:

1. pregnancy,
2. the use of maternal, parental, adoptive and paternity leave or leave which, in terms of content and manner of use, is equivalent to the right to paternity leave, part-time work, part-time work for the purpose of increased child care, leave of a pregnant worker, leave of a worker who has given birth or a worker who is breastfeeding a child and leave or part-time work for the purpose of nursing care and care of a child with severe developmental disabilities in accordance with the regulation on maternal and parental benefits
3. temporary incapacity for work during treatment or recovery from an injury at work or an occupational disease
4. performing the duties and rights of citizens serving in national defense forces.

The notice period runs in the event of termination of the worker's employment contract during the liquidation or dissolution proceedings of the company by summary proceedings without liquidation in accordance with the company regulation. The notice period shall not run during the period of temporary incapacity for work. The notice period shall run during the period of temporary incapacity for work of a worker whose employment contract was terminated by the employer before the beginning of that period and with that decision, the worker was released from the obligation to work within the notice period, unless otherwise regulated by a collective agreement, an working regulation or an employment contract. Furthermore, the notice period shall run during annual leave and paid leave. If there has been an interruption of the period of notice due to temporary incapacity for work of a worker who has not been released from the obligation to work by the employer, the employment relationship with that worker shall be terminated at the latest six months after the date of the beginning of the notice period.

In case of ordinary dismissal (Labor Act (NN 151/22), Article 122 defines that the length of the notice period depends on the duration of the employment relationship. The standard notice period lasts:

(1) In the case of regular notice, the notice period shall be at least: 1) two weeks, if the worker continuously spent less than one year in employment relationship with the same employer 2) one month, if the worker continuously spent one year in employment relationship with the same employer 3) one month and two weeks, if the worker continuously spent two years in employment relationship with the same employer 4) two months, if the worker continuously spent five years in employment relationship with the same employer 5) two months and two weeks, if the worker continuously spent ten years in employment relationship with the same employer 6) three months, if the worker continuously spent twenty years in employment relationship with the same employer. (2) The notice period referred to in paragraph 1 of this Article shall be increased by two weeks if the worker has reached the age of fifty, and by one month if he or she has reached the age of fifty-five. (3) A worker whose employment contract is terminated due to a breach of an employment obligation (notice due to the misconduct of the worker) shall be given a notice period of half of the notice periods set out in paragraphs 1 and 2 of this Article. (4) The employer shall pay the worker who is exempt from the obligation to work during the notice period the salary compensation and recognize all other rights as if he or she had worked until the expiry of the notice period. (5) During the notice period, the worker shall be entitled to be absent from work for at least four hours a week for the purpose of seeking new employment. (6) A collective agreement or employment contract may provide for a shorter notice period for the worker than for the employer than the deadline specified in paragraph 1 of this Article, in the case when the worker terminates the employment contract. (7) If the worker terminates the employment contract, the notice period may not exceed one month, if he or she has a particularly important reason for doing so. (8) By way of derogation from paragraph 1 of this Article, a worker who, at the time of termination of the employment contract has reached 65 years of age and 15 years of pensionable service, shall not be entitled to a notice period.

The Law 28(I)/2001, which applies to collective dismissals (within 30 days, dismissals of at least 10 workers in companies with 21-99 employees, at least 10% in firms with 100-299 workers or at least 30 workers in firms with 300 or more staff), does not provide for a specific notice period to employees. Article 4 requires for the employer who intends to resort to collective dismissals to consult with the employees' representatives in good time with the aim to conclude an agreement. However, Article 8 provides for a 30 days notification period to the relevant authority before the dismissals can enter into force.

Article 9 of the Termination of Employment Law 24/1967, which applies to all dismissals, provides for a minimum period of written notice for employee(s) to be dismissed on the basis of the length of service:

• one week of notice period for 26 to less than 52 weeks of service;
• two weeks of notice period for 52 to less than 104 weeks of service;
• four weeks of notice period for 104 to less than 156 weeks of service;
• five weeks of notice period for 156 to less than 208 weeks of service;
• six weeks of notice period for 208 to less than 259 weeks of service;
• seven weeks of notice period for 260 to less than 311 weeks of service;
• eight weeks of notice period for more than 312 weeks of service.

The same article provides that during the trial employment period, which can last up to 26 weeks (able to be extended to up to 104 weeks with the written agreement of the employer and the employee) no notice period is mandatory by either party.

The Transparent and Predictable Conditions of Employment Law of 2023 took away the possibility of extension, so currently a trial period (when no notice period is mandatory), can only last up to 26 weeks (6 months).

The notice period must be the same for both the employer and the employee and shall be at least two months. It may be extended only by agreement between the employer and the employee. The notice period shall start to run on the first day of the calendar month following delivery of the notice and come to an end upon the expiry of the last day of the relevant calendar month. The employment relationship will come to an end upon the expiry of the notice period.

The Czech Labour Code does not distinguish the length of the notice period for permanent contracts or for fixed-term contracts. There do not exist different notice periods for specific groups of workers (for instance disadvantaged workers).

Employers are required to notify their workforce at least 30 days in advance of any planned collective dismissals (within 30 days, dismissals of at least 10 workers in companies with 20-100 employees, at least 10% in companies with 101-300 employees, or at least 30 workers in companies with more than 300 workers). Before giving notice to individual employees, the employer is obliged to inform in writing the trade union and the works council about its intention in time, not later than 30 days in advance.

When giving notice of upcoming redundancies, Danish employers are required to inform and enter into negotiations with employees 'as early as possible' and before the final notice of redundancies. If a company with a minimum of 100 employees plans to make more than 50% of them redundant, a minimum of 21 days must pass before the final decision is made. Danish employers are required to give a minimum of 30 days' notice of impending redundancy to employees. When the planned redundancies make up at least 50% of the employees in a workplace with a minimum of 100 employees, the notice period is 8 weeks. For employees covered by the Danish Salaried Employees Act (the Act on the Legal Relationship between Employers and Salaried Employees), the notice to be given by the employer increases depending on the employee’s length of service and is subject to a maximum notice period of six months (for a tenure of more than nine years). The act on collective redundancies does not cover individual dismissals, whereas all dismissals in the context of the notice periods of the salaried employees act are individual.

An employer must give an employee advance notice of extraordinary cancellation which depends on the time the employee’s employment relationship with the employer has lasted:

• less than one year of employment – no less than 15 calendar days;
• one to five years of employment – no less than 30 calendar days;
• five to ten years of employment – no less than 60 calendar days;
• ten and more years of employment – no less than 90 calendar days.

These requirements also cover collective redundancies (within 30 days, dismissals of at least 5 employees in companies with up to 19 staff, of at least 10 in firms with 20-99 staff, of at least 10% in companies with 100-299 staff or of at least 30 in larger companies), but the period shall not be shorter than 30 calendar days from the point in time when the employer has informed the Estonian Unemployment Insurance Fund about the collective redundancy. 

An employer may cancel an employment contract without adhering to the term for advance notice if, considering all circumstances and mutual interests, it cannot be reasonably demanded that the performance of the contract be continued until the expiry of the agreed term or term for advance notice (including bankruptcy).

If an employer wishes to terminate the employment contract with immediate effect, he/she may choose to remunerate the advance notice period in money. The amount that the employer or employee has the right to receive is based on the average working day wage of the employee and the number of days that advance notice of cancellation of the employment contract was given less.

Employers are required to give notice prior to the termination of employment. Unless otherwise agreed, the notice period is calculated based on the employee’s length of service, as follows:

• 14 days of notice if employed for less than one year;
• one month if employed for 1–4 years;
• two months if employed for 4–8 years;
• four months if employed for 8–12 years;
• six months if employed for more than 12 years.

In case the employee quits his/her job, the notice period is 14 calendar days for an employment that has lasted up to five years, and one month for employments longer than five years. An employer and employee also have the possibility to agree on the length of the notice period. However, it can never exceed six months.

In case of cooperation negotiations, employers must notify the employees at the latest five days before the negotiations begin if there are likely to be layoffs or other changes of essential terms of an employment contract. When fewer than 10 employees are affected, negotiations will last a minimum of 14 days; with 10 or more employees affected, the minimum negotiating period is six weeks. In practice, redundancies can then take effect at earliest five days plus 14 days or five days plus six weeks from the employer's first notification. The limit of 14 days is also applicable in cases where the negotiations concern furloughs of a maximum of 90 days, and when an employer regularly has below 30 employees.

Each employee that is to be dismissed is entitled to a notice period, except if the dismissal was due to gross misconduct, negligence, or incapacity. The employee continues to work in the company under the same status and receives regular remuneration until the employment relationship is terminated. The length of notice depends on the employee's seniority in the company:

• One month notice for six months to two years of seniority;
• Two months notice for more than two years of seniority;

The notice period for seniority below six months is set by collective agreement or company practice.

The notice period commences on the day on which the letter of dismissal is presented to the employee. The notice period cannot be postponed or suspended except in case of an accident at work, an occupational disease or paid leave. 

If the employer exempts the employee from the notice period, the employee cannot oppose it. However, it does not alter the date of termination of the employment contract and the employer has to pay compensation for the period remaining.

The employee may request to be released from work during the notice period but the employer is not obliged to grant a release. If the employer accepts, the contract ends at the date decided upon by both parties and the employer has no obligation to pay any further wages or compensation.

If the employment relationship is terminated at the request of the employee, the notice period depends on the employee's seniority in the company and professional status. Details are determined by sectoral collective agreements but the notice period is generally between one and three months. Shortened periods may be negotiated between the parties and some collective agreements release employees from any notice period if they have found new employment.

There is no notice period for fixed-term contracts in the case of a restructuring. According to article L. 1243-1 of the Labour Code, notice periods apply to fixed-term contracts only if the employee decides to leave the employer for another position on a permanent employment contract or in case of dismissal related to a serious misconduct, inability or force majeure (these three grounds are not relevant in the context of restructuring).

For individual dismissals, the Civil Code specifies the period of minimum notice to be given by the employer. The minimum notice given to all employees is:

• four weeks for less than two years of employment;
• one month for employment between 2-4 years;
• two months for employment between 5-7 years;
• three months for employment between 8-9 years;
• four months for employment between 10-11 years;
• five months for employment between 12-14 years;
• six months for employment between 15-19 years;
• seven months for service of more or equal to 20 years.

The notice period for employees working in establishments with no more than 20 workers can be four weeks independent of the duration of their employment if this notice period is agreed in the individual employment contract.

The notice period can be shorter than four weeks in case of auxiliary employment. In case of a probation period of six month, the notice period reduces to two weeks.

Employment relationships of blue-collar and white-collar workers can be terminated on the 15th or last day of each month, with a notice period of four weeks.

The regulation does not apply to workers on fixed-term contracts unless the notification period is specified in the individual contract or in a collective agreement applied by the employer. 

According to the amendments to the Civil code and to the Act on homework ('Heimarbeitsgesetz', HAG), the calculation of the notice period has to take into consideration the entire duration of the employee's employment history with the same employer, without age limit. Before this amendment, which came into force on 1 January 2019, employment history was taken into account only for employees aged 25 or more.

As of 1 January 2022, by virtue of art. 64, of Law 4808/2021, any discrimination between white - and blue -collar workers regarding the notice period, and the termination of dependent labour contract, is abolished, and all provisions governing the termination of the employment contract of employees are now also applicable to blue-collar workers. For implementation hereof, 22 daily wages are considered as the monthly salary of the blue-collar workers, unless they are already paid a monthly salary.

Employment with an open-ended employment agreement is considered to be employment for a probationary period for the first 12 months from the date that it comes into force, which may be terminated without notice and without severance pay, unless otherwise agreed by the parties. An open-ended employment agreement of a private employee that has a duration of more than 12 months cannot be terminated without prior written notice from the employer, which will take effect from the day after the employee is notified, under the following conditions:  

• For employees who have served from 12 completed months to two years, one month's notice is required before dismissal;
• For employees who have served from two to five years, two months' notice is required before dismissal;
• For employees who have served from five to 10 years, three months' notice is required before dismissal; and
• For employees who have served 10 years or more, four months' notice is required before dismissal.

An employer who gives an employee written notice in accordance with the above pays half of the statutory severance pay to the dismissed employee.

These provisions apply for all forms of dismissals, including collective dismissals.

A fixed-term contract can be terminated before its end immediately, i.e. without notice period, for a significant reason, either by the employer or by the employee. 'Significant reason' consists of the existence of events during the contract which make it impossible to continue the agreement in good faith (for instance, breach of contractual obligations and damage caused by the employee with failure to comply with the essential terms of the contract and detraction of the employee by the employer, etc.). If a significant reason exists, the employer is not obliged to pay compensation. If the contract is terminated and no significant reason exists, the employee can go to court to claim the wages that would have been received until the end of the contract.

The notice period begins at the earliest on the day following the date when the dismissal is communicated. 

Where employment is terminated by the employer, the notice period shall begin at the earliest on the day after the last day of the following periods:

• duration of incapacity to work due to illness, not to exceed one year following the expiration of the sick leave period;
• absence from work for the purpose of caring for a sick child; and
• leave of absence without pay for providing home care for a close relative.

The above rules shall apply in case of collective redundancies if the conditions specified exist at the time when the written notification on the decision regarding collective redundancy is given.

The notice period is 30 days. If employment is terminated by the employer, the 30 day notice period shall be extended by a certain number of days on the basis of the number of years of employment by the employer in question, and namely:

• 5 days after 3 years of employment by the employer;
• 15 days after 5 years;
• 20 days after 8 years;
• 25 days after 10 years;
• 30 days after 15 years;
• 40 days after 18 years; and
• 60 days after 20 years.

By agreement of the parties, the notice period may be extended by up to six months. In case of a fixed-term employment relationship, the notice period may not go beyond the fixed term.

For individual dismissals, employees are entitled to a statutory minimum notice of one week provided that they have been working for the employer for at least 13 weeks. The contract of employment may provide for a longer period of notice. The notice periods for individual dismissals are regulated by the Minimum Notice and Terms of Employment Acts 1973–2005 and depend on the employees’ length of service. The notice periods are the following:

• 13 weeks to 2 years of employment: 1 week
• 2 years to 5 years: 2 weeks
• 5 years to 10 years: 4 weeks
• 10 years to 15 years: 6 weeks
• 15 years or more: 8 weeks

Economic circumstances (e.g. closure of the business, lack of work, or reorganisation within the firm) are regarded as valid and fair reasons for dismissal. Other legitimate reasons to cancel the employment contract can relate to the employee’s conduct, capability, competence and qualifications. In most cases the onus is on the employer to show that a genuine redundancy situation exists and that the employee is not unfairly dismissed.

In case of collective dismissals, the notice period happens after the consultation period. Under section 12 of the 1977 Act, for collective redundancy situations, at least 30 days notice must be given to the relevant minister before the first dismissal takes effect. Under section 9(3) of the 1977 Act, employees (through their representative) have a right to a 30-day consultation period. Such consultation must begin at least 30 days before the first notice of dismissal. The notice periods under sections 9(3) and 12 can run concurrently. Employers have to consult with employee representatives on the collective redundancy situation, which includes exploring alternatives to redundancy.

Collective redundancy, for the purpose of the act is defined as at least 5 redundancies in an establishment employing 21-49 employees; at least 10 redundancies in an establishment employing 50-99 employees; at least 10% of employees made redundant in an establishment employing 100 - 299 employees; and at least 30 redundancies in an establishment that employs 300 or more people.

For the application of the 2006 Act, there must be an employment minimum threshold of 50 people. The 2006 Act can cover redundancy situations but extends to non-redundancy situations as well. For an information and consultation forum to be set up under the 2006 Act, it has to be initiated by employees; if the employer is uncooperative with this measure, there is recourse to the labour court.

Generally, the party exercising the right to withdraw from the employment contract must comply with a notice period.

The obligation to give a notice period concerns almost all cases of termination of the employment relationship (dismissal and resignation), with some limited exceptions regarding the hypotheses of:

• just cause, that is, for an event or behavior that does not allow the relationship to continue, even provisionally;
• consensual resolution, that is when the parties have formally agreed differently.

Failure to give notice leads to compensation for damages, financially quantified in the remuneration that would have been due to the worker for the period of work not carried out.

The civil code demands the regulation of the duration of the notice period in case of individual dismissals to collective agreements, which normally set it on the basis of seniority and staff level, and on the size of the company. Variation, therefore, exists in different sectors of economic activity.

A specific regulation exists in case of collective dismissals (i.e. the lay-off of at least five workers within 120 days in companies with more than 15 employees). In case of collective dismissals, the Italian law envisages the recourse to a collective procedure lasting 75 days, in which the decision to collectively dismiss workers is jointly examined between the employer and employee representatives (45 days) and, in case of failure to reach an agreement, also by public institutions (in the form of the territory labour inspectorate). Once this procedure is concluded, the employer can legitimately dismiss the redundant workers even in the absence of an agreement. Employees to be made redundant in the framework of collective dismissals need to be informed in writing. As it is the case also of individual dismissals, the notice period for permanent employees is fixed by collective agreements. An indemnity can be paid in lieu of the notice period as well. Temporary employees are not covered by the notice period but their contracts cannot be terminated in advance on economic grounds.

If an employer is reducing its number of employees or in case the business (legal person or partnership) is being liquidated, an employer has to give a notice of termination of an employment contract to the employee one month before, unless the collective agreement or the employment contract specifies a longer time period. If the employee is a person with disability, the notice period is two months.

The right to revoke a notice of termination by the employer is subject to agreement by the employee unless the collective agreement or the employment contract has specified such right. The purpose of this norm is to protect employees against unexpected changes in employers' decision.

By agreement between the employee and the employer, an employment contract may also be terminated before the expiry date for the notice of termination.

No specific provisions are made for collective redundancies.

According to article 57 of the Labour code, in case of both individual and collective dismissals, an employer is entitled to terminate an employment contract by giving the employee written notice one month in advance or, for employment relationships lasting less than one year, two weeks in advance. These notice periods are doubled for employees who have less than five years left to reach the statutory age of old-age pension and tripled for employees who are raising a child under the age of 14, for those who are raising a disabled child under the age of 18, for pregnant women, for those who have less than two years left to reach the statutory age of old-age pension and for disabled employees. The list of persons for whom the notice periods are tripled has been expanded to include workers who have submitted a certificate for an illness included in the list of serious illnesses approved by order of the Minister of Health of the Republic of Lithuania (amendements of Art. 57, par. 7 of the Labour Code, Law No XIV-1189 , came into force on the 1s of August, 2022).

With the exception of state and municipal institutions and establishments funded with the state budget, an employer can terminate an employment contract by giving notice 3 working days in advance, in exchange for a severance payment that is no less than six times the employee’s average remuneration (article 59).

The employer has the right to terminate an employment contract without notice and without severance pay if the employee commits a violation of the obligations under legal provisions or the employment contract (article 58).

The notice of termination for an employment contract must indicate the reason for termination and the provision in which the legal basis for termination is specified, as well as the date of termination. If, at the end of the notice period, the employee is temporarily incapable of work or is on granted leave, the end of the notice period is postponed until the end of the temporary incapability or leave. During the notice period, the employee, at the request thereof, must be given at least 10% of the former standard working hours to look for a new job, during which the employee shall retain his or her remuneration (article 64).

If an employment relationship under a fixed-term employment contract continues for more than one year, the employer must give the employee written notice of termination upon expiry at least 5 working days in advance. If the employment relationship under a fixed-term employment contract continues for more than three years, the notice period extends to at least 10 working days in advance (article 69).

According to article 60, an employment contract can be terminated without notice:

• upon entry into force of a sentencing judgement for an employee;
• when an employee is deprived of special rights to perform a certain job or to hold a certain position, following the procedure established by law;
• when a parent, a statutory representative, a health care provider or the school of enrolment of an employee under the age of 16 demands the termination;
• when an employee is no longer able to hold the position or to perform work according to a healthcare institution and does not agree to be transferred to another vacant position that accommodates her health condition, or when such a position or job is not available at that workplace;
• upon the return to work of an employee, whose place was filled by the employee being dismissed;
• by order of a competent official from an institution carrying out control of illegal work if a case of illegal work by a foreign national is established;
• when the employment contract is in conflict with the law and the contradictions cannot be eliminated, and the employee does not agree to be or cannot be transferred to another vacant position.

An employer, who has received a document verifying the above-mentioned reasons or has otherwise learned them, must terminate the employment contract within 5 working days of receiving the document or finding out about the reason (article 60).

In case of bankruptcy, within 3 working days (within 7 working days in case of group redundancy) of the day of the entry into force of the court order to institute bankruptcy proceedings against the employer or the meeting of creditors during which the creditors resolved to conduct out-of-court bankruptcy proceedings, the employees shall be given written notice of the impending termination of their employment contracts which shall be terminated no sooner than 15 working days after the said notice (article 62).

An employer who terminates an employment contract for a reason other than serious misconduct must give a notice period to the employee. In companies with fewer than 150 employees, the employer may dismiss with an immediate notice. If the company employs 150 staff members or more, the notification of dismissal must take place at the earliest the day after the pre-dismissal interview; or at the latest 8 days after the pre-dismissal interview. 

In order to summon an employee to a pre-dismissal interview, the employer must write a summons stating the reason for the summoning, and must include the envisaged dismissal of the employee, the date, time and location of the interview. Furthermore, the employer must also send a copy of the summons to the staff delegation. However, since 1 August 2016, the employer does not have to send a copy of the summons to the Inspectorate of Labour and Mines (ITM) any longer.

As mentioned in the summons, during the pre-dismissal interview, the employee can request to be assisted by either another employee in the company or by a delegate of a national representative union organisation which is represented in the staff delegation. The employer can also request to be assisted by either a member of staff or by a representative of an employers' organisation.

The duration of the notice period depends on the employee's length of service at the time of the dismissal notification: 

• two months before the redundancy becomes effective, if the length of service is up to 5 years;
• four months for 5–9 years of service;
• six months for service of at least 10 years.

The employer informs the employee of the termination with notice of the employment contract in writing either by registered letter; or by giving the letter in person to the employee, who must acknowledge receipt by counter-signing a copy of the letter. 

The notice period begins on the:

• 15th day of the current month, if the letter of dismissal was notified to the employee before the 15th;
• 1st day of the following month, if the letter of dismissal was notified to the employee between the 15th and the last day of the month.

​Notice periods are shorter if the employee decides to leave the company:

• one month before the redundancy becomes effective, if the length of service is up to five years;
• two months for 5–9 years of service;
• three months for service of at least 10 years.

​The employer may exempt the employee from work during his notice period, in full or in part. In order to do this, the employer must:

• notify the exemption from work in writing either in the letter of dismissal or in a subsequent letter;
• continue to pay the employee his/her full salary as well as any other benefits, excluding work-related costs (e.g. meal allowance, travel allowance, etc.);
• continue to grant the employee any salary increases that may occur during the notice period.

The notice periods in case of redundancies are indicated in article 36 of the Employment and Industrial Relations Act 2002 and are estimated according to the employee’s continuous length of service, which are:

• Less than one month - without notice;
• More than one month and up to six months - one week;
• More than six months and up to two years - two weeks;
• More than two years and up to four years - four weeks;
• More than four years and up to seven years - eight weeks;
• More than seven years and up to eight years - nine weeks;
• More than eight years and up to nine years - ten weeks;
• More than nine years and up to ten years - eleven weeks;
• More than ten years - twelve weeks.

Longer period of notice may be agreed in the case of technical, administrative, executive or managerial posts.

Regulations on collective redundancies (defined as the termination of the employment by an employer on grounds of redundancy of 10 employees if 21 to 99 persons are employed, 10% of the workforce if 100 to 299 are employed; and 30 or more employees if 300 or more persons are employed) require that employers inform the employees' representatives 30 days in advance about who are the employees to be made redundant. The applicable notice periods as indicated in article 36 of the main act are still to be adhered to. Nevertheless, no redundancy may take effect before the lapse of the said period of 30 days, unless in exceptional circumstances where the Director of Industrial and Employment Relations allows the employer a shorter notification period. In any case the employee shall still have the right to the applicable notice period (or to a compensation in lieu if the period or part of, is not respected), as stipulated by article 36 of the act.

In the case of collective redundancies, the employer must notify the employees’ representatives in writing before terminating their employment, ensuring that the representatives have the opportunity to consult with the employer (which consultations are to begin within seven working days from the day of notification). The employer must also inform the Director responsible for Employment and Industrial Relations. Where the intended collective redundancy concerns members of the crew of a seagoing ship, the employer must notify the Registrar General of Shipping and Seamen, as specified by L.N. 281 of 2017, which transposes part of Directive (EU) 2015/1794 of the European Parliament and of the Council of 6 October 2015.

Duration of the notice period to employees The statutory notice period that needs to be given to the employee is related to the length of service of the employee in the company: 

• one month for less than 5 years of service;
• two months for 5 to less than 10 years of service;
• three months for 10 to 14 years of service;
• four months for 15 or more years of service.

A shorter notice period is only allowed if it is agreed in a collective agreement. The notice period is the same for individual and collective dismissals.

Both parties may agree as an exception that the notice period for the employee is longer than the legal period, but it cannot exceed six months. If this procedure is followed, the notice period for the employer must be double of the notice period of the employee. The standard notification period for employees is one month. 

If the employee is on a zero-hours contract the notice period is four days or shorter if agreed in collective bargaining agreements (Art.672, par.5).

The sanction for non-compliance is the liability for damages.

Appropriate manner of giving notice

If the termination is for reasons other than those mentioned in the Civil code as grounds for immediate dismissal (e.g. theft, drunkenness, fraud and so on), official notice of termination must be given once the dismissal permit has been issued by the public employment service, collective labour market agreement committee or court (depending on circumstances). Such notification has to be given before the end of the month. The precise form in which it is given is not specified in law. However, authorities generally agree that a written notice is superior to an oral notice (for the purpose of evidence), and that notice should be given by registered mail. The party who is given notice (usually the employee) has a right to know the reason for said notice.

Other matters pertaining to the notice period If one of the parties (almost always the employer, but the employee may also terminate for immediate reasons) does not abide by the periods mentioned in the law or in the collective agreement, they may have to pay for the damages. This party owes the other party compensation equal to the amount of the wages determined in money over the period that the employment contract should have continued in the event of regular termination. Given extraordinary circumstances, the amount of compensation may be mitigated by the court.

Since 1 July 2015, the duration of a permit procedure at the public employment office, or a court procedure, may be subtracted from the notice period on the condition that the notice period is not shorter than one month.

According to the Working Environment Act, employers must give employees one month’s notice, unless otherwise agreed in writing or in a collective agreement. 

An employee who has been continuously employed for at least five years is entitled to receive two months’ notice. If employed continuously for at least 10 years, the employee is entitled to receive three months’ notice. An employee who has been continuously employed for at least 10 years must have a notice period of four months when dismissed after the age of 50, at least five months after the age of 55, and at least six months after the age of 60.

Periods of notice run from and include the first day of the month following that in which notice is given.

The State Employee Act has special regulations for civil servants. For employees with less than one year of service the notice period is one month. For employees with more than one year of service the notice period is three months, and for employees with more than two years of service the notice period is six months. 

The notice period for terminating all types of employment contracts (permanent, fixed-term, probationary) depends on the employee's length of service with the employer.

Two weeks' notice is required if the employee has been employed for less than six months, and one month's notice if the employee has been employed for at least six months. If the employee has been employed for at least three years, three months' notice should be given.

The probationary contract can be for a maximum of three months. Another probationary contract can only be signed with the same employee:

• if it concerns another job,
• after 3 years.

The probationary contract can be terminated with a notice period of

• 3 working days if the probationary period does not exceed 2 weeks;
• 1 week if the probationary period is longer than 2 weeks;
• 2 weeks if the probationary period is 3 months.

In the case of collective dismissal, the notice period is the same. The notice period can be extended in the employment contract or collective agreement, but in an asymmetrical way, i.e. it can only be extended for situations where the contract is terminated by the employer and not by the employee.

The employer must observe the following minimum notice periods which vary in accordance with each employee’s seniority:

• 15 days for employees with less than one year of service;
• 30 days for employees with one to five years of service;
• 60 days for employees with five years or more and up to ten years of service;
• 75 days for employees with more than ten years of service.

If the dismissal affects both spouses (or unmarried partners), the notice period to be considered shall be the level immediately above the one that would apply if the dismissal would affect only one of the members of the couple. There is no difference in the notice period between collective and individual dismissals.

The dismissed employee shall be notified in writing. 

The notice period in case of probationary periods and service commission agreements is also specified in the Labour Code. During a probationary period, either the employer or the employee can terminate the contract without providing notice. However, if the probationary period has lasted longer than 60 days, the employer shall abide by a seven day notice period, and if the probationary period has lasted longer than 120 days, the employer shall abide by a 15-day notice period. Service commission agreements can be terminated without cause for certain types of employees, namely managerial staff, as long the employer abides by the already mentioned minimum notice period thresholds.

Individual employees are not entitled to pay in lieu of notice according to the Labour Code. However, in case of a collective dismissal*, should the employer fail to comply with the required notice period, the employment contract will not end until the statutory notice period has expired and the employer is then required to pay the employee a sum equal to the salary equivalent to the missing period of notice.

*Collective dismissal occurs as a result of termination of the employment contract by the employer operated simultaneously or successively within a three-month period of either:

• At least two employees, if the company has fewer than 50 employees;
• At least five employees, it the company has 50 or more employees.

Employers must notify their workforce about planned redundancies 20 working days in advance. The notice must be communicated in writing; most often it is a stand-alone document, but sometimes in practice it may be a clause in the dismissal decision, which states that the decision will come into force at the end of the notice period.

If the employment contract is suspended (e.g. for medical reasons), the notice is also suspended. This may delay the time of actual termination of the contract.

The provisions are applicable both to individual and collective dismissals.

The notice must be in written and delivered to the employee concerned. Employers must notify their workforce at least one month in advance about the proposed job reduction.

The minimum notice period is one month. But the notice period is at least two months for the employee that has been in service for at least one but less than five years and at least three months for the employee that has been in service for at least five and more years if the employer terminates the employment relationship:

• for economic reasons (the organisation or its part is abolished or relocated and the employee does not agree with the change in his or her agreed place of work or the employee became redundant from technical or organisational reasons)
• or due to changes in the health condition of the employee.

An employer can give immediate notice when the employee has breached seriously the work discipline or was condemned for a premeditated criminal act.

In the event of ordinary individual or collective cancellation of the employment contract by the employer for a business reason, the notice period shall be:

• 15 days for up to one year of service with the employer,
• 30 days for a period exceeding one year of service with the employer,
• after a two-year period of employment with the employer, the 30-day notice period increases for each year of employment with the employer by two days, but should not exceed 60 days,
• after a period of 25 years of service with the employer, the period of notice is 80 days unless a different notice period is specified by a branch collective agreement, but in no circumstances less than 60 days.

An 'economic dependant' (defined as a self-employed person who performs work in person, independently and for remuneration for a longer period of time in circumstances of economic dependency and who does not employ workers) is provided with limited labour law protection, including assurance of minimum notice periods. Economic dependency means that a person obtains at least 80% of his or her annual income from the same contracting authority.

A fixed-term employment contract terminates without notice upon the expiry of the time period for which it was concluded.

Employers are required to notify their workforce of planned redundancies 15 days in advance of initiating the process, in case of dismissals on objective grounds. This applies for collective and individual redundancies. This notice period applies to all the employees irrespective of their tenure. The employee is entitled to paid leave of six hours per week during the notice period to look for alternative employment when there is an objective (justified by external circumstances) dismissal. If the employer fails to comply with the notice period requirement, they will be obliged to pay the employee an amount corresponding to the period of notice that was not given.    

Dismissal must be communicated in written to both, workers affected and employees' representative bodies existing in the company.

The notice period for collective (and other) dismissals is one month for all employees with less than two years of service. 

This is extended to:

• Two months for those with 2 to 4 years of service;
• Three months for workers with 4 to 6 years of service;
• Four months for those with 6 to 8 years of service;
• Five months for employees with 8 to 10 years of service;
• Six months for those who have worked at the company for longer than 10 years.

If an employee is dismissed while on parental leave, the notice period begins when the employee comes back from parental leave, or when he/she was scheduled come back from parental leave.