FTC regulated: Yes

Valid reasons for FTC use: objective and material reasons

Remarks

Art. 45 and 47 LC

Maximum cumulative duration of successive FTCs: 60months

Remarks

Art. 45 LC

Maximum probationary (trial) period (in months): 3 months

Remarks

Art. 51 LC

Obligation to provide reasons to the employee: Yes

Remarks

Art. 71 (3) and Art. 76 LC

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

Remarks

Art. 70 LC

In 2011, an amendment added employees working in a state-financed enterprises that reach working age limit to the list of Art. 70.
(source: 17 May 2011 #127-IVQD)

Prohibited grounds: pregnancy, maternity leave, family responsibilities, race, sex, religion, political opinion, social origin, nationality/national origin, age, trade union membership and activities, parental leave, state of health

Remarks

Art 79(1) LC: Pregnant women, single parent, people raising children under the age of 3, workers who temporarily lost an ability to work, workers with diabetes or scattered sclerosis, members of a trade union or political party, workers with limited health capabilities under the age of 18 or with a severe disability, during negotiations of collective bargaining.

Prohibited ground for a dismissal on the basis of race, sex, religion, together with other grounds are listed in Art. 16(1) LC on “Non-discrimination in labour relations”.ns”.

Workers enjoying special protection: workers' representatives, pregnant women and/or women on maternity leave, workers with family responsibilities, workers performing military/alternative service, minors

Remarks

Art. 80 LC provides that the employer has to ask the authorization of the trade union to dismiss any member of the trade union.

Art. 255 prohibits the dismissal of workers under 18 for the lack of professional competency.

Art. 77 LC provides protections for workers performing military/alternative service.

Notification to the worker to be dismissed: written

Remarks

Article 75 LC provides that the employer has to comply with the employment contract in writing. No explicit provision in the LC stating that the notification has to come in writing.

Notice period:

Remarks

Art. 77 (1) LC
Amendments were made on this in 2017.

tenure ≥ 6 months:

  • All: 0.5 months.

tenure ≥ 9 months:

  • All: 0.5 months.

tenure ≥ 2 years:

  • All: 0.5 months.

tenure ≥ 4 years:

  • All: 1 months.

tenure ≥ 5 years:

  • All: 1 months.

tenure ≥ 10 years:

  • All: 1.5 months.

tenure ≥ 20 years:

  • All: 2.25 months.

Pay in lieu of notice: Yes

Remarks

Art. 77 (4) LC

Notification to the public administration: No

Notification to workers' representatives: No

Approval by public administration or judicial bodies: No

Approval by workers' representatives: No

Remarks

However, according to art. 80 LC, the employer has to obtain the authorization of the trade union to dismiss a member of that trade union.

Definition of collective dismissal (number of employees concerned): No statutory definition

Prior consultations with trade unions (workers' representatives): No

Notification to the public administration: Yes

Remarks

Art.17(2) of the Law on Employment: the employer has to inform, 2 months in advance, the public service of employment about any contemplated redundancies.

Notification to workers' representatives: Yes

Remarks

Law on Trade Unions of 1994:
Art. 11. Right of trade unions to defend labour rights.
...Where the closure of an enterprise or its subdivisions at the initiative of the management may lead to a complete or partial cessation of production, workforce reductions or a deterioration of working conditions, such measures, with the exception of cases provided for by the law, shall not be carried out without prior notice of not less than three months to the trade unions concerned, and consultations with them concerning the safeguarding of workers' rights and interests.

Approval by public administration or judicial bodies: No

Approval by workers' representatives: No

Remarks

However, according to Art. 80 LC, the employer has to obtain the authorization of the trade union to dismiss a member of that trade union.

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

Remarks

Art. 78 LC - the employer defines the list of workers to be dismissed for economic reasons.

Employer's obligation to consider alternatives to dismissal (transfers, retraining...): No

Priority rules for re-employment: No

Severance pay:

Remarks

Amendments were made on this issue in 2017, as follows:

Art. 70 LC lays out grounds for the employer to terminate a labour contract:
a. Liquidation of the enterprise;
b. Staff cuts;
c. Employee’s incompetence (dismissal performed upon the approval of the attestation commission);
d. Employee’s gross violation of labor duties, neglect for labor functions or obligations stated in the employment contract. ;
e. Employee’s failure to justify work potential during the trial period;
f. Employee in a state-financed enterprise reaching the working age limit

Art. 77(3) LC dictates that workers dismissed for the reasons of an enterprise liquidation (Art. 70 a) or staff cuts (Art. 70 b) should be reimbursed:
1 year of experience – an average monthly wage
1- 5 years of experience - at least 1.4 of the average monthly wage
5-10 years of experience – at least 1.7 of the average monthly wage
More than 10 years of experience – at least 2 of the average monthly wage

According to Art. 77 (7) LC, the dismissal on the grounds of changing labour conditions (Art. 68 c), call for a military or alternative service (Art. 74 a) and employee’s inability to perform labour functions due to incapability to work continuously for more than six months, the employer pays at least two months of the average monthly wage.

Upon employers initiative (in accordance with the 12th Chapter of the LC dictating the procedure on the termination of labour contracts), the employee is not entitled to a severance payment if dismissed under Article 70 (c,d,e,f). The workers, however, have a right to appeal the decision to the Court.

tenure ≥ 6 months: 0 months

tenure ≥ 9 months: 0 months

tenure ≥ 1 year: 0 months

tenure ≥ 4 years: 0 months

tenure ≥ 5 years: 0 months

tenure ≥ 10 years: 0 months

Redundancy payment:

Remarks

Art. 77(3) dictates that workers dismissed for the reasons of an enterprise liquidation (Art. 70 a) or staff cut (Art 70 b) should be reimbursed:
1 year of experience – an average monthly wage
1- 5 years of experience - at least 1.4 of the average monthly wage
5-10 years of experience – at least 1.7 of the average monthly wage
More than 10 years of experience – at least 2 of the average monthly wage

According to Art. 77 (7) LC, the dismissal on the grounds of changing labour conditions (Art. 68 c), call for a military or alternative service (Art. 74 a) and employee’s inability to perform labour functions due to incapability to work continuously for more than six months, the employer pays at least two months of the average monthly wage.

Upon employers initiative (in accordance with the 12th Chapter of the LC dictating the procedure on the termination of labour contracts), the employee is not entitled to a severance payment if dismissed under Article 70 (c,d,e,f). The workers, however, have a right to appeal the decision to the Court.

tenure ≥ 6 months: 0 months

tenure ≥ 9 months: 0 months

tenure ≥ 1 year: 1 months

tenure ≥ 2 years: 1.4 months

tenure ≥ 4 years: 1.4 months

tenure ≥ 5 years: 1.4 months

tenure ≥ 10 years: 2 months

tenure ≥ 20 years: 2 months

Compensation for unfair dismissal - free determination by court: Yes

Remarks

Art. 290 and 300 LC

Compensation for unfair dismissal - Legal limits (ceiling in months or calculation method):

Remarks

Art. 299 LC - No legal limits for any claim for an individual labour dispute.

Reinstatement available: Yes

Preliminary mandatory conciliation: No

Remarks

Art. 294 LC

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

Remarks

Art. 296 LC

Existing arbitration: Yes

Remarks

Art. 265 LC

% of dismissals out of the total number of disputes: 80