Unlawful termination

What it means

Unlawful termination is a notice of termination, immediate termination or termination during probation that fails to meet statutory requirements. Typically there is no valid ground, the written form was not observed, the notice was not properly delivered or it was given during a protected period.

Invalidity does not arise automatically. The employee must bring a court action within two months of the date on which employment was supposed to end. If the deadline is missed, the termination is treated as valid even with obvious defects. The employer has the same deadline to challenge a termination by the employee.

If the court rules that the termination was invalid and the employee has notified the employer in writing that they insist on continued employment, the employment continues. The employee is entitled to wage compensation for the time the employer gave them no work, though in lengthy proceedings the court may reduce compensation for part of the period.

How it works in practice

An employer's notice must state a specific ground for dismissal so that it cannot be confused with another, and the employer may not change it later. For organisational reasons, the decision on the change must be provable; for performance-related grounds, a prior written warning is needed.

Immediate termination is an exceptional step, permitted only for serious breach of discipline or a final conviction for an intentional crime. It must be given within the statutory period after the ground was discovered. For employee representatives, prior consent or consultation is required.

An employee who considers the termination invalid should promptly notify the employer in writing that they insist on continued employment and file the action within the deadline. The labour inspectorate can check compliance with the rules, but only a court decides on invalidity.

What to watch out for

For an employer, an invalid dismissal is a financial risk. Proceedings can take a long time, and wage compensation with contributions and legal costs can far exceed what a termination agreement with severance would have cost. It is worth taking legal advice before giving notice.

A termination agreement is often the safer route for both sides. It requires no ground, and the date, severance and other terms can be agreed. Even an agreement can be challenged, however, if it was concluded under duress or by mistake.