Whether you are facing the termination of an employee or an employee has resigned, we are ready to help you with the challenges of the termination.
Termination of an employee
When you have to terminate an employee, you must be aware of the applicable notice of termination and many other factors that can be difficult for an employer to keep an overview over.
Is your employee a salaried employee or another type of employee, covered by a collective agreement, or perhaps subject to an employment clause?
You must keep these and several other factors in mind as an employer when considering terminating an employee.
Your notice of termination as an employer depends on both legislation, the specific employment contract and possibly collective agreements.
For salaried employees, the employer’s notice of termination is stipulated in the Salaried Employees Act. According to the Salaried Employees Act, the ordinary notice of termination depends on the employee’s seniority and whether a probationary period has been agreed upon. However, the ordinary notice of termination can be deviated from by agreement as long as it does not happen to the detriment of the salaried employee.
For other employees, the notice period usually depends on the employment agreement entered into and, possibly, collective agreements.
However, salaried employees may also be covered by collective agreements, which is why it is always important to familiarize yourself with the rules that regulate the individual employment relationship.
In the case of a termination of a salaried employee who has been employed for 12 months or more at the time of the termination, the employee is entitled to a fair/objective basis for said termination.
If the basis of the termination is not considered to be fair/objective, then the salaried employee is, in principle, entitled to a compensation equal to up to 3 months’ salary. For employees with long seniority the maximum compensation rises to equal up to 6 months’ salary.
The cut-off date of 12 months’ employment does not apply to terminations that violate other legislation, such as the Equal Treatment Act and the Discrimination Act. As an employer, you must, therefore, regardless of the time of the termination, be aware of whether the termination might be conflict with other legislation.
Collective agreements may contain similar requirements for the fairness/objectivity of the termination, which is why employers must also be aware of whether a termination of other employees than salaried employees might trigger a claim for compensation or other sanctions.
The employee’s termination of the employment
When an employee resigns, the termination of the employment is subject to fewer rules than when the employer terminates the employment. However, this does not mean that there are no rules for the employee’s termination.
Notice of termination
The employee’s notice of termination is regulated in both legislation, collective agreements, and the individual employment contract. Just like the employer’s notice of termination
According to the Salaried Employees Act, an employee can terminate his or her position with one month’s notice until the end of a month. The notice is not dependent on seniority, but it can be extended by agreement, provided, however, that the employer’s notice of termination is extended accordingly.
A probationary period can be agreed upon for the employment relationship, whereby both parties’ notice of termination is reduced to 14 days in the first three months of the employment relationship.
In addition, for other types of employees, the individual employment contract or collective agreements might dictate the employee’s termination notice. As an employer, it is important to know if your employees resign with the proper notice.