Labour law

On what grounds can an employment contract be ended?

Huquqchi legal team

An employment contract ends by agreement of the parties, on expiry of its term, on the employee's initiative, on the employer's initiative, or by circumstances outside the will of the parties. The Labour Code sets a separate procedure and separate guarantees for each ground.

The main groups

Article 155 of the Labour Code lists the grounds for ending a contract. The main ones are:

  1. Agreement of the parties โ€” the calmest route. The parties record it in a written supplementary agreement.
  2. Expiry of the term of a fixed-term contract โ€” the other party receives a written warning at least three calendar days in advance.
  3. The employee's initiative โ€” the employee warns the employer in writing, as a rule fourteen calendar days in advance.
  4. The employer's initiative โ€” only on the grounds the law lists (article 161 of the Labour Code).
  5. Circumstances outside the will of the parties โ€” for example a call-up for military service, or a court sentence.

Dismissal on the employer's initiative

This is the group that causes most disputes. The employer cannot dismiss at will: the ground must be in the law, the procedure must be kept, and the documents must be drawn up. Under article 174 of the Labour Code, if the contract was ended unlawfully, the employee is reinstated in the previous job and is paid for the time of the forced absence. In a dispute the employer proves that the dismissal was lawful.

What to check

Legal sources

Legal basisLabour Code, article 155 Legal basisLabour Code, article 161 Legal basisLabour Code, article 174

This article gives legal information, not legal advice. For your own situation, consult a qualified lawyer.