Grounds for dismissal

What it means

Grounds for dismissal are the reasons set out in the Labour Code for which an employer may give an employee notice of termination. The list is closed, so the employer cannot dismiss for any reason not stated in the law, and the ground must be specified precisely in the notice.

They include organisational reasons such as the closure or relocation of the employer or redundancy, medical unfitness for the current work, failure to meet the requirements for the job, unsatisfactory performance of work tasks and breach of work discipline.

An employee, by contrast, may resign for any reason or none. This asymmetry protects the employee as the weaker party and ensures that the employer can end employment only for objective and provable reasons.

How it works in practice

Some grounds come with extra conditions. For unsatisfactory performance, the employer must first ask the employee in writing to remedy the shortcomings and give them reasonable time. For organisational reasons and medical unfitness, the employer may have to offer other suitable work first.

When dismissed for organisational reasons or medical unfitness, the employee is entitled to severance pay depending on length of service, in addition to wages during the notice period. A collective agreement may grant more than the statutory minimum.

If the employer dismisses several employees at once for organisational reasons, it may be a case of collective redundancies requiring consultation with employee representatives and notification of the labour office. A dismissal must also be discussed with employee representatives where they exist.

What to watch out for

A notice with a vague or incorrectly stated ground is invalid. The employee can challenge the unlawful termination in court within the statutory deadline and, if successful, may be entitled to wage compensation for the period of the dispute.

During a protected period, for example sick leave, pregnancy or maternity leave, the employer generally may not give notice, except in statutory exceptions. Before serving notice, it must therefore be checked whether the employee is in a protected period.