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The Employment Contracts Act provides for compensation for groundless termination of employment. The law stipulates that the minimum amount of compensation is the employee’s three months’ salary and the maximum is 24 months’ salary. However, the maximum amount of compensation paid to shop stewards and elected representatives is 30 months.
Compensation for groundless termination of employment shall be paid when:
the employer has terminated the employment relationship in violation of the grounds laid down in the Employment Contracts Act
the employer has terminated an open-ended or fixed-term employment contract contrary to the grounds laid down by law
the employer has terminated the employment contract too late after the right to terminate has already expired or considered the employment relationship terminated without statutory grounds
the employee has terminated the employment relationship due to a serious breach of law or contractual relationship by the employer.
When determining the amount of compensation, account is taken of the estimated duration of the absence of work and loss of earnings, the remaining duration of the fixed-term employment contract, the duration of the employment relationship, the employee’s age and the employee’s possibility of obtaining work corresponding to his or her profession and education, the employer’s conduct when terminating the employment contract, the reason given by the employee himself or herself for terminating the employment contract, the circumstances of the employee and the employer in general, and other comparable factors.
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