BlogContracts & TransactionsEntrepreneurship & BusinessLegal Resources10 Most Frequently Asked Questions About Layoffs

August 18, 20220
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Dear reader, we are fully aware that due to the recent economic recession, you might find yourself before a staff shortage. To that end, we thought of answering the 10 most frequently asked questions about layoffs.

 

1. What are the reasonable reasons for the dismissal of the employee by the employer?

 

Employers should have reasonable and justified reasons for dismissing their employees. The lack of a reasonable cause entitles the employee to receive compensation. However, the lack of a reasonable cause does not prevent the employer from dismissing the employee because it is sufficient for the employer to respect the deadlines and the notification procedure.

Article 153 of the Labor Code determines the termination of the contract with reasonable grounds. These causes include:

  1. All serious circumstances that do not allow, according to the principle of good faith, the continuation of the employment relationship.
  2. When the employee violates the contractual obligations by a serious fault
  3. When the employee violates the contractual obligations by a minor fault, repeatedly, despite the written warnings of the employer.

The court decides on the existence of these reasons for the immediate termination of the contract.

2. When is the contract terminated without reasonable cause?

 

Article 146 of the Labor Code stipulates the termination of the contract without reasonable cause. The causes include:

  1. When the employee has claims arising from the employment contract
  2. When the employee has fulfilled a legal obligation
  3. When the prohibition of discrimination has been violated
  4. For motives related to the exercise by the employee of a constitutional right, but which does not lead to the violation of the obligations deriving from the employment contract.
  5. For reasons of membership or not of the employee in the trade union created by law or due to his participation in trade union activities according to law
  6. It is contrary to Article 144 point 3 of the Labor Code

Employee rights: The employee has the right to file a lawsuit against the employer within 180 days from the date of expiration of the term. If the motive is discovered after the deadline, the employee should file a lawsuit within 30 days from the day the motive was discovered.

Obligation of the employer: The employer has the obligation to give the employee an indemnity of up to one year salary, which is added to the salary he must receive during the notice period.

 

3. When can an employment contract not be terminated?

 

Article 147 of the Labor Code stipulates that the contract cannot be terminated when the employee is present at work in two specific cases:

  1. When he is unable to work for a period of up to one year – he/she has a medical report, is hospitalized, has maternity leave, etc.
  2. When he is on leave granted by the employer such as annual leave, daily leave, marriage leave, etc.

 

4. What procedure is followed for the termination of the contract if the employee does not have a written contract?

 

If the employee does not have a written employment contract, the employment relationship is terminated by the employer through a procedure.

  1. The employer must follow the procedure of terminating the contract according to Article 144 of the Labor Code
  2. The employer must follow the notification procedure according to the seniority of the employee at work, at the company / institution where he works at the time of departure (Article 145 of the Labor Code)
5. What is the contract termination procedure followed by the employer?

 

  1. The employer must notify the employee in writing at least 72 hours before the meeting and discuss with him/her.
  2. The employer must present to the employee the reasons for the decision and give him/her the opportunity to respond.
  3. The written solution is announced within 48 hours to one week after the meeting.
  4. The employer notifies in writing the reasons for the termination of the contract

The failure of the employer to follow the procedure leads to the compensation of the employee with a salary of two months, which is added to other possible compensations. 

The employer has the burden of proof for the observance of the procedure. The procedure does not apply in the case of collective leave but written reasons must be given regardless. 

6. What are the consequences of immediate termination of the contract without justified reasons?

 

Article 155 of the Labor Code defines the consequences of the immediate termination of the contract without justified reasons. The consequences are:

  1. The employee has the right to the salary he would have earned if the employment relationship had ended as provided by law or in the contract.
  2. The employer has the right to deduct from the salary the income that:
  • The employee has saved due to work interruption,
  • From another job,
  • Which he has deliberately given up.

The court decides for the compensation up to one year salary in addition to the salary he / she must receive during the notice period.

The employee has the right to file a lawsuit against the employer within 180 days from the day of termination of employment. If the motive is discovered after the deadline, the employee must file a lawsuit within 30 days from the day the motive was discovered.

7. What are the deadlines for notification by the employer for the termination of the contract after starting work?

 

Notification deadlines after the time of probation are defined in Article 143 of the Labor Code

  • 2 weeks- during the trial period;
  • 1 month- during the first 2 years of work;
  • 2 months – over 2 years of work up to 5 years of work;
  • 3 months- over 5 years of work.

 

8. What are the rewards an employee receives when the contract is terminated immediately without reasonable cause?

 

If he has worked for more than 3 years, he receives a seniority bonus (calculated according to Article 145 of the Labor Code). 

The remuneration is ½ of the monthly salary for each full year of work. This reward is not earned if it is proven that the contract was terminated because of the fault of the employee.

 

9. What documents must an employee whose employment contract has been terminated in order to go to court?

 

  1. The individual original employment contract;
  2. The workbook completed by the employer after leaving;
  3. The social and health insurance booklet completed by the employer;
  4. A copy of the payroll made at the bank where he receives the salary;
  5. Any other document the employee has related to the matter in question.

If the tables turn, and the employee decides to leave the company, you should ask him to submit a letter of resignation.

We are aware that he may be very busy with the exit closings, so it will really take him 5 minutes to draft this resignation letter using Legit’s platform.

Just follow these steps:

  1. Register on the platform as a user
  2. Generate the “Resignation Letter” 
  3. Download the document

P.s: Registration on the platform is free of charge! (:

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