Labour law is a branch of law dealing with all the issues arising from the employment.
Labour law Act is the major regulation governing the following: conclusion of contracts of employment, working hours, pay levels, termination of contracts of employment, realisation of employment rights and obligations as well as any other issue within the labour.
Employment contracts are concluded between the employers and employees at the beginning of the employment. Mutual rights and obligations shall be governed in more detail by those contracts. Frequently asked questions and legal issues occur in many terms related to the employment contracts. Therefore, our specialised department of labour attorneys within our office, feels an obligation to further explain some of the terms.
We promise it would be quite clear to you and you can always ask for any written advice or legal opinion from our lawyers from the scope of labour law.
But, let us try to explain this in the following way:
What is employment contract termination by mutual consent?
Employment contract termination by mutual consent is a method of employment termination when employer and employee agree on the terms of employment termination in written form (e.g. determination of a date of employment termination, the amount of compensation and any other employee rights.
When an employer can initiate extraordinary termination of the employment contract?
An employer may request extraordinary termination of an employment contract in case of a substantial breach of obligations on the part of the employee or in case the employment becomes impossible to continue due to some other reasons such as current COVID-19 pandemic situation. In such case, the key role is clausula rebus sic stantibus - "Force Majeure" (referring to the release from contractual obligations in case fulfilment of contractual obligations is impossible due to external events having the characteristics of force majeure which cannot be avoided). In the first case, such serious infringements can be contracted either by a collective agreement or by company work regulations whereas in the second situation all shall be defined by the employment contract.
Cancellation of a fixed-term/indefinite-term employment contract
Cancellation of a fixed-term employment contract or an indefinite-term employment contract may be ordinary or extraordinary. Ordinary cancellation shall be in case of redundancy or when an employee fails to meet expectations during a probationary period. Extraordinary cancellation refers to a situation when an employee is liable for serious infringements at work.
Term: dismissal due to personal characteristics
Dismissal due to personal characteristics means a reason for dismissal given by an employee. It is, therefore, a situation in which the employee is unable to perform his/her employment obligations properly due to some consistent characteristics (illness) or abilities.
Term: dismissal due to business reasons
Dismissal due to business reasons or the dismissal due to “redundancy” is a way of employment termination due to economic, technical or organisational reasons which affect company business.
Within Labour Law, LJUBIC Law Firm provides following legal actions: