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Home Work life guide page Lay-offs Termination of employment contracts during lay-offs

Termination of employment contracts during lay-offs

During a lay-off, an employee may terminate their employment contract without a notice period. If the employee knows the end date of the lay-off, the right to terminate the employment contract without a notice period does not apply during the seven days preceding the last day of the lay-off. An employer may not terminate a lay-off for a made-up reason because an employee would not be able to terminate their employment contract without a notice period.

If the employer terminates the employment contract of a laid-off employee so that the contract expires during the lay-off, the employee is entitled to notice pay. The employer may deduct 14 days’ pay from the notice pay if the employee has been laid off using a lay-off notice period of more than 14 days in accordance with the applicable law or contract.

If an employee terminates their employment contract after the lay-off has lasted at least 200 consecutive (calendar) days, they are entitled to receive compensation for the notice period set by the employer. The employee has no obligation to work.

Any annual leave falling between lay-off periods does not mean that the lay-off is interrupted.