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Contract Termination


If you're notified of termination or resignation, you should contact the department of labor or your local union association. They can answer many questions about the dismissal and investigate whether it has been correct.

It's important that you contact department of labor as soon as possible, as:

Usually any cancellation of the - employment contract - termination can only be requested during the first fourteen calendar days. Upon resignation, the union must request deliberation within seven calendar days. The employer is legally obliged to call for negotiation before termination.

Reasons for contract termination

1- Termination due to lack of work can take place, for example, in connection with a reorganization and it can affect one or more people. Lack of work is a legal technical term and doesn't mean that there is a shortage of work tasks, but that the employer wants to reduce their workforce for operational or economic reasons. The employer may, for example, want to get a higher return on his or her capital or choose to change his / her focus on his / her business. The employer must investigate whether there are any opportunities for relocation before someone is terminated. Notification period according to LAS or collective agreement applies. Anyone who has been employed for at least twelve months in the past three years has preferential right to re-employment in the business where they previously worked.

2- Termination for personal reasons concerns individual individuals and means that the employee is terminated because they have mismanaged their work in a way that makes them unfit for the service. It can also affect people who for some reason can't return to work even though the employer has fulfilled their responsibility for work-oriented rehabilitation. If, however, the employee has a permanent reduced working capacity and can't carry out any work of significance with the employer, there are objective grounds for termination. Here too, the employer must first look at opportunities for relocation, and notice periods according to collective agreements apply. Usually, the employer must inform the employee of the dismissal at least two weeks in advance and at the same time warn the union organization.

3- Farewell means that you have been abusive and that the employment ends immediately. Usually, the employer must inform the employee about resignation at least one week in advance and at the same time warn the union organization.

Possible reasons to question a termination:

- If there are possibly personal reasons or even discrimination behind your dismissal
- About the rules of order according to the Employment Protection Act - last in, first out - have been waived
- If the employer doesn't realize that you have the skills required to perform tasks that remain.

Negotiations with the employer can, at best, result in the termination being withdrawn or that you receive an extended period of notice, severance pay or possible damages.

Notice period

If the dismissal is correct, usually you have one month's notice period when you start working, and until then another month is added every other year that you work. After ten years you have reached a notice period of six months.

If you have collective agreements, the notice period can be even longer, specially if you're over 55 and have worked more than ten consecutive years with the same employer. Then the notice period is twelve months.

You who work in the state sector are entitled to extended notice if you're dismissed due to a shortage of work. For each of the first three years you have state employment, you receive one month's extra notice period in addition to the law and other agreements. After four years you'll receive a double notice period.

Within the municipality and county councils, the notice period is six months for permanent employees with a continuous employment of at least twelve months. If you have turned 57 and have been employed by the employer for at least 10 years when you're terminated, the period of notice is twelve months if you're terminated due to a shortage of work.

"In the event of a dispute, the cancellation of the contract termination may lead to you retaining the employment until the dispute is resolved."

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