Obligation to provide reasons to the employee: Yes

Remarks

Art. 43 LC: The employer shall state in writing the reasons for the termination of the labour contract in the worker's labour book and shall be responsible for returning the labour book to the employee.

Valid grounds (justified dismissal): worker's conduct, worker's capacity, economic reasons

Remarks

Art. 38 LC and art. 12, Decree 2003
Article 38 LC
"1. An employer shall have the right to terminate unilaterally a labour contract in the following circumstances:
(a) The employee repeatedly fails to perform the work in accordance with the terms of the contract;
(b) An employee is disciplined in the form of dismissal in accordance with the provisions of article 85 of this Code;
(c) Where an employee suffers illness and remains unable to work after having received treatment for a period of twelve (12) consecutive months in the case of an indefinite term labour contract, or six consecutive months in the case of a definite term contract with a duration of twelve (12) months to thirty six (36) months, or more than half the duration of the contract in the case of a contract for a specific or seasonal job. Upon the recovery of the employee, the employer shall consider the continuation of the labour contract;
(d) The employer is forced to reduce production and employment after trying all measures to recover from a natural disaster, a fire, or another event of force majeure as stipulated by the Government;
(dd) The enterprise, body, or organization ceases operation."

Art. 12 Decree 2003: "The provision that employers are entitled to unilaterally terminate their labor contracts in cases prescribed at Points a and d, Clause 1, Article 38 of the amended and supplemented Labor Code is stipulated as follows:
1. Laborers constantly fail to fulfill their tasks under labor contracts, meaning that they fail to fulfill the labor norms or assigned tasks due to subjective reasons, and are booked or warned in writing at least twice in a month, but later still fail to redress their shortcomings.
The extent of failure to fulfill the work shall be inscribed in labor contracts, collective labor agreements or labor regulations of the units.
2. Force majeure reasons mean the cases where due to the requests of competent State bodies of the provincial or higher level, to enemy sabotage or epidemics which cannot be overcome, the production and/or business are subject to change or shrink."

Prohibited grounds: marital status, pregnancy, maternity leave, family responsibilities, temporary work injury or illness, race, sex, religion, social origin, trade union membership and activities, lawfully taking leave

Remarks

Prohibited grounds for dismissal: art. 39 and 111 LC.

See also:
- the general prohibition of discrimination in employment based on sex, race, social class, belief or religion (art. 5 LC).
- the prohibition of discriminatory treatment towards a worker who joins a trade union. (art. 1, 2) of the Trade Union law, 1990)

Workers enjoying special protection: workers' representatives, pregnant women and/or women on maternity leave, workers with family responsibilities, workers on temporary leave following an occupational disease or a work injury

Remarks

Art. 39, Art. 111: Prohibition to dismiss:
- a worker under treatment as a result of sickness, labour accident or occupational disease except in case of force majeure;
- pregnant women, women on maternity leave, and women taking care of a child under 12 months of age, except for business reasons.
Art. 155(4) LC: In order to dismiss a member of the executive committee of the local trade union, the employer must obtain the consent from this committee.

Notification to the worker to be dismissed: no specific form required

Remarks

Art. 38 (3) LC stipulates that the employer shall notify the worker of the dismissal but does not specify whether such notification shall be written.

Notice period:

Remarks

Art: 38 (3) LC: The employer must give at least 45 days' notice for an indefinite duration contract, 30 days' notice for a fixed-term contract, and three days' notice for a seasonal or specific-task contract. These requirements apply to all forms of unilateral termination, except when the employer is using dismissal as a disciplinary measure.

tenure ≥ 6 months:

  • permanent workers: 45 day(s).

tenure ≥ 9 months:

  • permanent workers: 45 day(s).

tenure ≥ 2 years:

  • permanent workers: 45 day(s).

tenure ≥ 4 years:

  • permanent workers: 45 day(s).

tenure ≥ 5 years:

  • permanent workers: 45 day(s).

tenure ≥ 10 years:

  • permanent workers: 45 day(s).

tenure ≥ 20 years:

  • permanent workers: 45 day(s).

Pay in lieu of notice: Yes

Remarks

Art. 41 (4) LC

Notification to the public administration: No

Remarks

No general obligation to notify.
However, before dismissing an employee due to poor performance, disciplinary measures, or illness, the employer must consult with the executive committee of the enterprise trade union with the aim of coming to an agreement. In case of disagreement, the two parties must report to the local branch of the State administration of labour: art. 38 (2) LC.

Notification to workers' representatives: Yes

Remarks

Art. 38 (2) LC: Before an employer can dismiss an employee due to poor performance, disciplinary measures, or illness, he must consult with the executive committee of the enterprise trade union with the aim of coming to an agreement.

Approval by public administration or judicial bodies: No

Approval by workers' representatives: No

Definition of collective dismissal (number of employees concerned): No statutory definition of collective dismissal.
Specific procedural requirements apply to redundancy of a number of employees following organizational restructuring or technological changes.

Remarks

Art. 17 (2) LC.

Prior consultations with trade unions (workers' representatives): Yes

Remarks

Art. 17 (2) LC.

Notification to the public administration: Yes

Remarks

Art. 17 (2) LC.
See also art. 6, Decree 2003.

Notification to workers' representatives: Yes

Approval by public administration or judicial bodies: No

Approval by workers' representatives: Yes

Remarks

Art. 17 (2) LC

Priority rules for collective dismissals (social considerations, age, job tenure): Yes

Remarks

Art. 17(2) LC: seniority, professional skills, family situation, and other factors.

Employer's obligation to consider alternatives to dismissal (transfers, retraining...): Yes

Remarks

Art. 17 (1) LC: Re-training obligation

Priority rules for re-employment: No

Severance pay:

Remarks

Art. 42 (1) LC and 14 Decree 2003.
Upon termination of employment, a worker who has been employed for more than one year is entitled to severance pay, which shall amount to half a month's wages plus other benefits, if any, for each year of service. Severance pay shall be paid within 7 day from the termination date.

However, a worker will not be entitled to severance pay if he has been dismissed as a disciplinary measure (except in case of excessive absence) or if he is receiving a monthly pension.

tenure ≥ 6 months: 0 month(s)

tenure ≥ 9 months: 0 month(s)

tenure ≥ 1 year: 0.5 month(s)

tenure ≥ 4 years: 2 month(s)

tenure ≥ 5 years: 2.5 month(s)

tenure ≥ 10 years: 5 month(s)

tenure ≥ 20 years: 10 month(s)

Redundancy payment:

Remarks

Retrenched workers are entitled to a loss of employment allowance which shall amount to one month¿s wages for each year of employment, but not less than the equivalent of two months' wages.
Labour Code, Art. 17(1), Art. 42 (worker in business, office, or organisation); Decree 2003, Art. 14.

tenure ≥ 6 months: 2 month(s)

tenure ≥ 9 months: 2 month(s)

tenure ≥ 1 year: 2 month(s)

tenure ≥ 2 years: 2 month(s)

tenure ≥ 4 years: 4 month(s)

tenure ≥ 5 years: 5 month(s)

tenure ≥ 10 years: 10 month(s)

tenure ≥ 20 years: 20 month(s)

Compensation for unfair dismissal - free determination by court: No

Compensation for unfair dismissal - Legal limits (ceiling in months or calculation method): 1) Compensation in lieu of reinstatement requested by the employee: severance pay + loss of wages during the absence from work caused by the dismissal + plus at least two months' wages.

2) Compensation in lieu of reinstatement requested by the employer: severance pay + loss of wages during the absence from work caused by the dismissal + plus at least two months' wages + an agreed additional amount of compensation.

3) Compensation, in addition to reinstatement: loss of wages during the absence from work caused by the dismissal + plus at least two months' wages.

Remarks

Art. 41 (1) LC

Reinstatement available: Yes

Remarks

Art. 41 (1) LC: reinstatement is mandatory unless the worker does not want to return to work.

Preliminary mandatory conciliation: No

Remarks

See art. 158, 162- 166 LC.
Preliminary mandatory conciliation by the Labour Conciliatory Council is prescribed prior the judicial settlement of an individual labour dispute (art. 162- 165 LC) and collective disputes (art. 168-170 LC).
However, disputes concerning disciplinary dismissal or unilateral termination of the employment contract can be settled directly by the Court without having to go trough the conciliation process. (art. 166 (2) LC).

Competent court(s) / tribunal(s): ordinary courts

Remarks

Art. 166 LC

Existing arbitration: No

Remarks

Not applicable to individual labour disputes. However, compulsory arbitration is foreseen for the settlement of collective labour disputes : art. 170-172 LC.