FTC regulated: Yes

Valid reasons for FTC use: no limitation

Remarks

Art. 16 GLA: the parties can conclude employment contracts for an indefinite term or for a fixed term, according to the nature of the activity, the economic capacity of the business and the tasks assigned to the worker.

Maximum number of successive FTCs: no limitation

Maximum cumulative duration of successive FTCs: 5year(s)

Remarks

Renewals of FTCs are allowed provided that the maximum cumulative duration does not exceed the general statutory limit of 5 years (art. 17 GLA). As an exception, for small and micro enterprises the maximum cumulative duration of successive FTCs is 10 years (art. 17(2) GLA).
Paragraph 4 of article 17 GLA also provides that in case of contracts of 3 or more months, the party that does not have the interest of renovating the contract must give a previous notice of 15 days.

Maximum probationary (trial) period (in months): 6 month(s)

Remarks

Art. 18 GLA: The standard probationary period shall be 60 days. However, the parties can extend this period, in writing, to 4 months when a highly qualified employee is concerned, or to 6 months when the worker is hired to perform highly complex technical work or if he/she occupies a managerial position which requires high level education.
If the contract is concluded for a fixed-term, a probationary period can be stipulated in writing provided that it does not exceed 15 days for unskilled workers and 30 days for skilled workers.
During that period, either part may terminate the employment contract without prior justification and prior notice, and without any compensation.

Obligation to provide reasons to the employee: Yes

Remarks

- Disciplinary dismissals:
The reasons justifying the intended disciplinary action (including dismissals) must be stated in the prior interview notification (art. 48(2)a) GLA)l, then explained in detail during the interview (art. 49(2) GLA) and lastly be included in the written communication of the disciplinary dismissal to the employee (art. 50(2) GLA).

- Economic dismissals:
The reasons underlying economic individual (affecting less than 20 workers) and collective dismissals shall be provided in the notification to the labour inspectorate (arts. 211(1) and 217(1) GLA). Prior to the GLA 2015, the employer had the obligation to notify also the workers’ representatives of the economic reasons of the dismissal.
However, under the new GLA 2015, the employer is only obliged to notify the workers of the dismissal, no express reference to the reasons is made in the law (the notice period is 30 days for individual dismissals (art. 212(1) GLA), and 60 days for collective ones (art. 219(1) GLA).

Valid grounds (justified dismissal): any fair reasons

Remarks

Art. 205 GLA: Just cause is required for individual dismissal. Just causes include serious disciplinary offenses or the objective causes which make it impossible to maintain the employment relationship.
* Disciplinary reasons:
Art. 206 GLA provides a list of just causes justifying disciplinary dismissal (e.g. unjustified absence from work, non-observance of the working hours, lack of punctuality, serious disobedience, verbal or physical violence against the employees, the employer or his/her representatives, severe indiscipline, repeated lack of compliance with the obligations incumbent to the worker, theft, robbery, embezzlement, fraud, revealing manufacturing secrets, causing damages deliberately or through gross negligence to the premises, equipment, bribery and corruption, intoxication or drug addiction, non-compliance with the safety and hygiene rules).
*Objective reasons:
Art. 210 GLA: dismissal can be justified by economic, technological and structural reasons involving internal reorganization, restructuring, reducing or closing down the business activity.

Prohibited grounds: marital status, pregnancy, race, colour, sex, religion, political opinion, social origin, nationality/national origin, trade union membership and activities, performing military or civil service, language, others, ethnic origin

Remarks

Art. 208(2) GLA provides for the nullity of any dismissal which is based on the following grounds:
- political, ideological and religious views;
- trade-union affiliation (and non-affiliation);
- any other discriminatory grounds listed in arts. 4(1) and 19(2)b) GLA. Those include: race, colour, sex, ethnic origin, marital status, social condition, political or religious views, trade union membership, language, age, citizenship, family members at the workplace, careers, wages, duration and other conditions of work.
- In addition, the law provides for a prohibition to dismiss a woman covered by the maternity protection (that is during the entire pregnancy and up to one year after delivery) unless she commits a disciplinary offence which makes it immediately and practically impossible to maintain the employment relationship (art. 246(1)d GLA).
- Lastly, in art. 59 GLA there is a presumption of unfair dismissal (rebuttable by the employer), when a dismissal takes place within 6 months:
* after an employee's complaint regarding his/her working conditions or a violation of his/her rights,
* after the refusal to follow illegal orders,
* after the worker has exercised or intended to exercise any other rights conferred by statute.
The dismissal of a worker, who has held or sought to hold office as a trade union representative or an employees' representative, is also presumed to be unfair when it takes place within 2 years after the completion of his/her term or after the selection process (art. 59(2) GLA).

Workers enjoying special protection: workers' representatives, pregnant women and/or women on maternity leave, workers with disabilities, war veterans, minors

Remarks


Art. 207 provides for special protection against disciplinary dismissal for the following categories of workers:
- trade union leaders, trade union delegates or worker's representatives;
- women covered by maternity protection (=during the entire period of pregnancy until 1 year after delivery (arts 246 and 251 GLA);
- war veterans;
- minors (art. 260 GLA);
- workers with a limited occupational disability degree of 20% or above.
Any disciplinary dismissal of the above-mentioned workers (except for trade union leaders, trade union delegates or worker's representatives and women enjoying maternity protection) is subject to the authorization of the General Labour Inspectorate (see arts. 207(3), 260 GLA). The law provides that a woman covered by the maternity protection has the right not to be dismissed unless she commits a disciplinary offence which makes it immediately and practically impossible to maintain the employment relationship and provided that the Labour inspector acknowledges that the offence is of such nature and grants authorization (art. 246 (1)d) and (4) GLA). Besides, a woman covered by the maternity protection has the right not to be dismissed for objective reasons (art. 251 GLA).
- Specific rules apply to the disciplinary dismissal of trade union leaders, trade union delegates or worker's representatives: mandatory notification to the trade union or the body they belong, presumption of unfair dismissal, higher compensation for unfair dismissal.

Notification to the worker to be dismissed: written

Remarks

- Individual economic dismissal: art. 212 GLA.
- Disciplinary dismissal: art. 50(2) GLA.

Notice period:

Remarks

Art. 212 GLA: The period of notice for individual economic dismissals is 30 days.

No notice is required for disciplinary dismissals.

tenure ≥ 6 months:

  • All: 30 day(s).

tenure ≥ 9 months:

  • All: 30 day(s).

tenure ≥ 1 year:

  • All: 30 day(s).

tenure ≥ 2 years:

  • All: 30 day(s).

tenure ≥ 4 years:

  • All: 30 day(s).

tenure ≥ 5 years:

  • All: 30 day(s).

tenure ≥ 10 years:

  • All: 30 day(s).

tenure ≥ 20 years:

  • All: 30 day(s).

Pay in lieu of notice: Yes

Remarks

Art. 234(3) GLA: Pay in lieu of notice for individual economic dismissal.
No notice for disciplinary dismissal.

Notification to the public administration: Yes

Remarks

- Individual economic dismissals (= those concerning up to 20 workers):
Art. 211 GLA: Notification to the General Labour Inspectorate. Such notification shall include:
- a description of the economic, technological and structural reasons underlying the collective dismissal;
- the positions affected and number of workers to be dismissed;
- the intended measures relating to the reorganization or the reduction of activities;
- the number of workers affected by the dismissal;
- the selection criteria;
- the possibility or not to transfer those workers to other positions;
- other information necessary to assess the situation, the necessity and the size of the dismissal.
The General Labour Inspectorate can initiate an investigation in order to clarify the facts within 15 days after receiving the notification (art. 211 GLA).

- Disciplinary dismissals: no such prior notification to the administration, except for war veterans, minors and workers with a limited occupational disability degree of 20% or above (see art. 207 (3) and (4) GLA)

Notification to workers' representatives: No

Remarks

No requirement to notify workers' representatives.

In disciplinary dismissals, no such notification required. However, the employee has the right to be assisted by up to three witnesses that can be employees or members of the trade union to which he or she is affiliated during the preliminary interview (art. 48(2) GLA). If the employee is a trade union member or a workers' representative, a copy of the dismissal notice shall be sent to the trade union or the representative body concerned (art. 50(3) GLA).

Approval by public administration or judicial bodies: No

Remarks

- Individual economic dismissals (= those concerning less than 20 workers): Within 15 days after being notified, the General Labour Inspectorate can initiate an investigation in order to clarify the facts (art. 211 GLA).

- Disciplinary dismissals: no approval by the administration, except for war veterans, minors and workers with a limited occupational disability degree of 20% or above (see art. 207 (3) and (4) GLA)

Approval by workers' representatives: No

Remarks

- Individual economic dismissal (= those concerning less than 20 workers): Workers and their representatives may go to court if they disagree with the decision.
- Disciplinary dismissals: no approval required.

Severance pay:

Remarks

No severance pay following a disciplinary dismissal.
However workers dismissed by way of individual or collective economic dismissal are entitled to redundancy pay (see below).

tenure ≥ 6 months: 0 month(s)

tenure ≥ 9 months: 0 month(s)

tenure ≥ 1 year: 0 month(s)

tenure ≥ 4 years: 0 month(s)

tenure ≥ 5 years: 0 month(s)

tenure ≥ 10 years: 0 month(s)

tenure ≥ 20 years: 0 month(s)

Redundancy payment:

Remarks

-Arts. 236 GLA: In case of dismissal for reasons relating to the employer (= economic, technological and structural reasons), the worker is entitled to a redundancy payment calculated as follows:
oBig companies: one month's base salary for each year of service, within the limit of 5 years, this sum being complemented by 50% of the same monthly salary for each year of service exceeding 5 years of service.
oMedium companies: one month’s base salary for each year of service, within the limit of 3 years, this sum being complemented by 50% of the same monthly salary for each year of service exceeding 3 years of service.
oSmall companies: two month’s base salaries, this sum being complemented by the 30% of the same monthly wage for each year of service exceeding two years.
oMicro companies: two month’s base salaries, this sum being complemented by the 20% of the base salary for each year of service exceeding two years.
Both workers dismissed by way of collective dismissal and workers dismissed by way of individual economic dismissal are entitled to the above-mentioned redundancy. Payment.

tenure ≥ 6 months: 0 month(s)

tenure ≥ 9 months: 0 month(s)

tenure ≥ 1 year: 1 month(s)

tenure ≥ 2 years: 2 month(s)

tenure ≥ 4 years: 4 month(s)

tenure ≥ 5 years: 5 month(s)

tenure ≥ 10 years: 7.5 month(s)

tenure ≥ 20 years: 12.5 month(s)

Compensation for unfair dismissal - free determination by court: No

Compensation for unfair dismissal - Legal limits (ceiling in months or calculation method): 1) Disciplinary dismissals:
Art. 239 GLA. Unfair disciplinary dismissal: compensation in lieu of reinstatement shall be:
- for big companies: 50% of the base salary for each year of service, but not less than 3 months' base salaries;
- for medium companies: 40% of the base salary for each year of service, but not less than 3 months' base salaries;
- for small companies: 30% of the base salary for each year of service, but not less than 2 months' base salaries;
- for micro companies: 20% of the base salary for each year of service, but not less than 1 month base salary.


In addition, the employee shall be granted back pay from the date of dismissal until he/she obtains a new employment or until the date of the court's decision. However, back pay shall not exceed 6 months' base salaries for big companies, 4 months' base salaries for medium companies and 2 months' base salaries for small and micro companies (arts. 209 (3) GLA).

If the disciplinary dismissal was based on prohibited grounds (see above - 'substantial requirements') or did not follow the required procedural rules (call for an interview, notice of dismissal), it will be declared null by the Court, and the employee will be reinstated. The employee must receive back pay from the effective date of his dismissal until his/her reinstatement (art. 208 GLA).

2) Economic dismissals:

- Individual dismissals:
Arts. 215 and 237 GLA. In the event of an unfair individual economic dismissal The compensation in lieu of reinstatement shall be:.
- for big companies: 50% of the base salary for each year of service;
- for medium companies: 40% of the base salary for each year of service;
- for small companies: 30% of the base salary for each year of service;
- for micro companies: 20% of the base salary for each year of service.

The employee is entitled to receive this compensation, notwithstanding the redundancy payment (arts. 214, 215 (3), 236 and 237 GLA).
The employee is also entitled to back pay from the date of the dismissal until the date he/she obtains a new employment or until the date of the court's decision. However, back pay shall not exceed 6 months' base salaries for big companies, 4 months' base salaries for medium companies and 2 months' base salaries for small and micro companies (arts. 209 and 215 (4) GLA).

- Collective dismissals:
In the event of an unfair collective dismissal the employer must reinstate the worker and must give the worker back pay from the date of the dismissal until the date of the court decision.
If the reinstatement is impossible or the worker does not want to be reinstated, the worker shall be awarded compensation in lieu of reinstatement in addition to redundancy payment (art. 223 (2) GLA). According to art. 223 (3) and 237 GLA such compensation shall be:
- for big companies: 50% of the base salary for each year of service;
- for medium companies: 40% of the base salary for each year of service;
- for small companies: 30% of the base salary for each year of service;
- for micro companies: 20% of the base salary for each year of service.

Reinstatement available: Yes

Remarks

1) Disciplinary dismissals:
- Reinstatement is available in the event of an unfair disciplinary dismissal. If the employee does not wish to be reinstated, he or she will be awarded compensation for unfair dismissal. In addition, the employee shall be granted back pay from the date of dismissal until he/she obtains a new employment or until the date of the court's decision. However, back pay shall not exceed 6 months' wages (art. 209 GLA).
- Any disciplinary dismissal which is based on prohibited grounds (see above - 'substantial requirements') or which did not follow the required procedural rules (call for an interview, notice of dismissal) will be declared null by the Court. As a result, the employee shall be reinstated and receive pack pay from the effective date of his dismissal until his/her reinstatement (art. 208 GLA).

2) Economic dismissals:
- Individual dismissal:
In the event of unfair individual economic dismissal,the dismissed worker is entitled to be immediately reintegrated to his/her job. If he/she does not wish to be reinstated or if reinstatement is not possible, he/she will be awarded compensation. In both cases, the worker will receive back pay within a limit of 6 months' base salaries for big companies, 4 months' base salaries for medium companies and 2 months' base salaries for small and micro companies (art. 209 and 215 (4) GLA).

- Article 215 provides that judicial reinstatement can be pursued in case the dismissal happened for i) the worker did not agree woth reduction or change of work location; ii) the criteria of preference for job maintenance has been violated.

- Collective dismissals:
In the event a collective dismissal is declared unlawful, the employer must reinstate the employee, unless reinstatement is not possible or the employee does not wish to be reinstated. In addition, the employee shall receive back pay from the date of the dismissal until the date of the court's decision (art. 223 (1) GLA).

Preliminary mandatory conciliation: Yes

Remarks

• The GLA provides for preliminary mandatory mediation of individual and collective labour disputes (art. 274 GLA). Conciliation is conducted by the General Labour Inspectorate (art. 275 GLA). After receiving the mediation request, the General Labour Inspectorate will summon the parties within 10 days. Within 10 days after the mediation takes place, the General Labour Inspectorate will present a settlement proposal to the parties (art. 277 GLA).
• The GLA also provides for a tentative conciliation procedure before the judge (art. 283 GLA).

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

Remarks

Labour Courts have jurisdiction over all kind of labour disputes: art. 307 GLA.

Existing arbitration: Yes

Remarks

• Voluntary arbitration is available to the parties (art. 293 GLA).