Notice of Termination: How Many Days in Advance Must It Be Communicated?

Understanding the Notice Period for Termination

In the context of employment relationships, the notice period for dismissal adheres to regulations similar to those applied when an employee voluntarily resigns.
This legal framework is designed to safeguard both employers and employees during the premature and unilateral termination of a work contract.

Thus, a dismissal must observe a stipulated notice period, except in extreme cases where the employee’s misconduct is so severe that continuing the employment relationship is untenable even for a single additional day.

In most situations, when an employment relationship is concluded, the employer must articulate a legitimate reason for the dismissal—unlike resignations, which can occur without justification—and notify the employee in advance.
This notice allows the employee ample time to seek new employment opportunities.

As a result, a dismissed employee retains their position and salary for a specific duration, which varies based on their job classification and length of service.
The notice period’s length is determined by national collective labor agreements, mirroring the period that employees must adhere to when resigning.

When is Dismissal Permissible?

As previously mentioned, while an employee can resign without a reason, an employer—the exceptions noted—must provide a valid explanation for their decision.
Employment law stipulates two primary scenarios under which an employer may terminate a permanent employee:

• Disciplinary Dismissal: This occurs when the employee’s conduct is blameworthy or malicious.
  Depending on the severity of the misconduct, it can either lead to:
• Just Cause Dismissal: This serious transgression prevents any continuation of employment, thereby waiving the need for a notice period.
• Subjective Justified Dismissal: This category refers to less severe actions that still impede the employment relationship, necessitating the provision of a notice period.

Not every disciplinary infraction leads to dismissal without notice; the extent of the actions determines the outcome.
Another avenue for permissible termination relates to the business structure itself.
For instance, an employer may need to downsize due to market conditions or discontinue a sector that is no longer profitable.
Such terminations are categorized as objective justified dismissals, which also require a notice period to be honored.

Calculating the Notification Compensation

Employers who neglect to adhere to the notice period are liable for compensating the employee for the duration of the missed notice, calculated based on the wages that the employee would have earned during this period.

If an employer fails to observe, say, a two-month notice period and opts for immediate termination, they are still required to pay two months’ salary, inclusive of commissions and bonuses.

When is Notice Not Required?

As noted, there are situations when notice is not obligatory.
For instance, in cases of just cause disciplinary dismissal or within a defined probationary period, if specified in the employment contract.
Additionally, when an employer opts not to renew a fixed-term contract, there is no need for notice.

Finally, if an agreement is reached between the employer and employee for mutual termination, no notice is necessary.

How is the Notice Period Determined?

There is no universal fixed timeframe for a notice period; its length is subject to various factors including collective bargaining agreements, the employee’s category, job level, and length of service.
Generally, the notice period aligns with that specified for employee resignations but may vary depending on the specific collective agreement.

The notice period commences immediately, but its progression may be interrupted by certain events such as sick leave or vacation.
Typically, during this notice period, employees are expected to continue with their responsibilities unless alternative arrangements are made with their employer.