- Undertakings with less than 20 employees are exempt from the procedural requirements applicable to collective dismissals. (see definition of collective dismissals in art. 96 ERA).
- In addition, there are some exceptions or specific requirements for employers employing ten or less employees (referred to in the ERA as "smaller employer": art. 5 ERA). With regards to those employers:
- a branch collective agreement may provide for shorter notice periods than those established by the law (art. 91 ERA);
- a branch collective agreement can provide for the conclusion of fixed term contracts in situations other than those restrictively allowed by the ERA (art. 52 (2) ERA);
- the obligation to check the possibility of finding another suitable job for an employee prior to his dismissal for economic reasons or capacity-related reasons does not apply (art. 88 ERA).

Art. 2 ERA: The Act applies to both private and public workers.
However, specific regulations exist for the following categories:
- Public servants (only those employed in a State body or in the administration of local communities) : see Public Servants Act (2005 consolidated text ): art. 159-163 PSA
- Army: Defence Act (2004 consolidated text)
- Police: Police Act (2006 consolidated text).

In addition, in concluding a contract of employment with managers, the parties may differently regulate the rights and obligations including those relating to termination of employment (art. 72 ERA).

Art. 52 (1) ERA contains an exhaustive list of situations when resorting to fixed-term contract is authorized.

Note: In addition to those situations referring to temporary work, conclusion of a contract with managerial staff is also listed as valid reason for resorting to fixed-term contracts.
Such limitations may not apply to employers employing 10 or less 10 workers, if so stipulated in a branch collective agreement: art. 53 (2) ERA.

Art. 53 (2) ERA: No limitation on the maximum number of successive FTC. This provision refers to "one or more successive contracts". However, there is a limitation on the maximum cumulative duration which shall not exceed 24 months.

Art. 53 (2) ERA: One or more successive FTC should not be concluded with the same worker and for the same job for an uninterrupted period exceeding 24 months.

(Note: up to three months' interval between the conclusion of two contracts shall not be deemed an interruption for the purpose of defining an interrupted period: art. 53(4) ERA)

Exception: This 2-year limitation does not apply, amongst others, to contracts concluded with managerial staff and temporary replacement of an absent worker.
In addition see art. 53 (3) ERA (as amended in 2007): "The job from the previous paragraph can be prolonged for more than two years if the project introduces new programmes or new technologies in the working process".

Source: Eurostat, annual average, 2010.
Ths figure refers to the percentage of employee with a contract of limited duration (= temporary job) of total number of employee aged 15-74 years.
Eurostat data are based on the following definition:
"A job may be considered temporary if employer and employee agree that its end is determined by objective conditions such as a specific date, the completion of a task or the return of another employee who has been temporarily replaced (usually stated in a work contract of limited duration). Typical cases are: (a) persons with seasonal employment; (b) persons engaged by an agency or employment exchange and hired to a third party to perform a specific task (unless there is a written work contract of unlimited duration); (c) persons with specific training contracts."

Art. 125 ERA: The trial period may not last longer than 6 months. It can be extended in case of temporary absence from work.

Art. 86 (2) ERA: the notice of termination shall state the reason for termination and explain it in writing.
Art. 88 (2) ERA: Reasons behind ordinary termination must be serious and substantiated.

Art. 88 (1) ERA : list of reasons for ordinary termination.

NB: The ERA distinguishes between "ordinary" and "extra-ordinary" termination.
Ordinary termination shall be justified by one of the listed reasons related to the worker's conduct, capacity and economic reasons.
Extra-ordination termination is in allowed in exceptional cases of severe violations of the employee's obligations exhaustively listed in art. 110 ERA (i.e criminal offence, gross negligence, absence due to imprisonment). No notice period is required in such cases. Specific rules relating to extra-ordinary dismissals are contained in art. 110-11 ERA and will not be further developed here.

Art. 89 ERA lists unfounded reasons for termination.
See also art. 81 ERA together with art. 6 ERA that list prohibited grounds for discrimination.

* Worker's representatives and trade union representatives: No dismissal without the prior consent of the body whose member they are (art. 113 ERA).
* Older workers (over 55 years old): No dismissal for economic reasons without the consent of the worker until he fulfills the minimum conditions for acquiring the right to an old-age pension (art. 114 ERA). The 2007 amendment foresees the possibility for the employer to offer a new adequate employment in line with art. 88 of the ERA.

* Workers with family responsibilities and pregnant women:
Prohibition of dismissal during pregnancy, period of breastfeeding and parental leave (art. 115 ERA).

* Workers with disabilities and workers absent due to illness or injury: art. 116 (1) and (2) ERA)

Art. 86 (1) ERA

Art. 92 ERA (as amended in 2007) establishes statutory minimum notice periods that vary according to the reason for dismissal and the length of service as follows:

If the contract is terminated by the employer, then the notice periods are
- 30 days if the length of service is less than 5 years;
- 45 days if the length of service is at least 5 years;
- 60 days if the length of service is at least 15 years;
- 120 days if the length of service is at least 25 years.

If the employer terminates the contract due to the worker's conduct (other than that entailing summary dismissal), then the notice period is one month.

[Note that prior to the 2007 amendment, the LC distinguished between dismissals for economic reasons and dismissal for reasons of incapacity and provided for higher notice periods for economic dismissals, as follows:
- Less than 5 years of service: 30 days (business reasons) / 30 days (incapacity).
- At least 5 years of service: 45 days (business reasons) / 45 days (incapacity).
- At least 15 years of service: 75 days (business reasons) / 60 days (incapacity).
- At least 25 years of service: 150 days (business reasons) / 120 days (incapacity).]

Art. 94 ERA

However, in both cases of ordinary and summary dismissal of a trade union member, if so requested by the worker, the employer is required to notify the said union: art. 84 ERA.
The trade union can oppose termination according to the modalities laid down in art. 85 ERA.

As a general rule. approval by worker's representatives is not required.

However, when dismissal concerns a trade union member, the trade union may oppose termination for absence of substantiated reason or violation of procedural requirements. As a result of such opposition, the effects of dismissals are suspended until the court or an arbitrator has ruled on the matter (art. 85 ERA).
Furthermore, worker's and trade union representatives enjoy special protection and cannot be dismissed without prior consent of the body they represent. (art. 113 ERA).

Art. 96 ERA

Art. 97 (2) ERA

Art. 98 ERA.

Note : collective dismissal can only take place after at least 30 days have expired from the notification to the Employment Service.

Art. 97 (1) ERA

However, consent is required prior to dismissal of a worker's or trade union representative for economic reasons, except when that worker refuses an offer of suitable alternative employment: art. 113 (1) ERA.

Art. 100 ERA lists criteria to be taken into account. These are: worker's education, qualification and capacities, working experience, seniority, job performance, health condition, social condition, family responsibilities. This article does not specify any order in those criteria. However, under the same criteria, priority shall be given to the preservation of the employment relationship of those employees who are in a worse social condition.

Art. 99 ERA provides for an exhaustive list of elements to be included in the compulsory "dismissal programme for redundant workers". This includes: measures for preventing or limiting to the highest degree the termination of the employment relationship which requires that the employer checks the possibility of continuing employment under modified conditions (art. 99 (1), second indent ERA).
In addition, the dismissal programme elaborated by the employer must include information on measures such as offer for employment with another employer, assurance of pecuniary aid, purchase of insurance period. (art. 99 (1), fourth indent).

See also art. 97 (2) ERA: the employer consults beforehand with the trade unions to reach an agreement on measures to avoid and limit the number of redundant workers as well as measures aiming at mitigating the adverse affects.

Art. 102 ERA: preferential right to reemployment for one year.

According to art. 109 ERA, any employee dismissed for economic reasons or reasons related to his capacity is entitled to severance pay amounting to:
- 1/5 of the employee's monthly wages in the last three months for each year of employment with the employer, if employed by the same employer for more than one and up to five years;
- 1/4 of the same basis for each year of employment with the employer, if employed by the same employer for the period from five to fifteen years;
- 1/3 of the same basis for each year of employment with the employer, if employed by the same employer for the period exceeding fifteen years.
Unless otherwise stipulated in the collective branch agreement, severance pay cannot exceed 10 month's wages (art. 109 (4) ERA).

Employees who are dismissed for reasons related to their conduct are not entitled to severance pay.

Same as severance pay: art. 109 ERA provides for severance pay including for economic reasons, as follows:
- 1/5 of the employee's monthly wages in the last three months for each year of employment with the employer, if employed by the same employer for more than one and up to five years;
- 1/4 of the same basis for each year of employment with the employer, if employed by the same employer for the period from five to fifteen years;
- 1/3 of the same basis for each year of employment with the employer, if employed by the same employer for the period exceeding fifteen years.
Unless otherwise stipulated in the collective branch agreement, severance pay cannot exceed 10 month's wages (art. 109 (4) ERA).

1) Dismissal based on the worker's conduct: no severance pay
2) Dismissal based on the worker's capacity: statutory severance pay
3) Economic dismissal (individual and collective): statutory redundancy payment = severance pay

Based on average monthly wages in the last three months before termination: Art. 118 ERA (as amended in 2007).

Art. 118 ERA: As a consequence of the court's decision finding the dismissal illegal, the worker is restored to his position unless he does not wish to continue the employment relationship and/or the court considers that continuation would no longer be possible.

Article 26 (2) of the Labour and Social Courts Act, stipulates that there is a pre-trial phase in which the President of the Judicial Senate works toward mediation/conciliation. If this fails, proceedings move to the adjudicatory phase.

Art. 204 ERA

Art. 205 ERA: A collective agreement may provide for the settlement of individual labour disputes by arbitration.
See also art. 228 ERA: Mediation by the labour inspector.