Either the employee or the employer may end an indefinite employment contract, but the law attaches conditions to that right: there must be a legitimate reason and written notice given a set period in advance.
The notice period
Article 75 of the Labour Law requires written notice to the other party at least sixty days before termination where the employee is paid monthly, and at least thirty days for other employees, stating the legitimate reason for ending the contract.
If the notice period is not observed
Article 76 of the Labour Law provides that a party who ends the contract without observing the notice period must pay the other party compensation equal to the employee's wage for the notice period, or for the part of it that remains.
Practical tips
- Give notice in writing, dated, and keep proof that it was delivered.
- State the reason for termination clearly; ending a contract without a legitimate reason may lead to separate compensation beyond the notice-period payment.
- Review the employment contract first, as it may contain notice terms both parties must respect within the limits of the law.
- Notice does not affect the employee's end-of-service award or other entitlements, which are calculated separately under the law.
If you are an employee or employer planning to end a contract, or claiming your rights after one has ended, contact us to review your situation before you act.
This article is for general awareness and does not constitute legal advice. Contact us for an opinion on your specific case.