This Global Termination Guide explains the different termination rules for countries in which Deel operates. If you have questions regarding the information contained in this guide, please reach out to your Deel point of contact.

If you are looking for information on how to terminate a Deel EOR Employee, please see How Do I Terminate a Full-Time Employee?

About this guide

Terminations are complex legal processes and are handled on a case-by-case basis by Deel's in-house Legal Team. The information provided in this guide is not legal advice.

All information, content, and materials available in this summary are for general information purposes only. While we are committed to delivering the most up-to-date information possible, changes in law, regulation, or other employment related practices may mean that some information is out of date.

Select a country from the list below to learn more. We are adding new countries all the time. If you can't find a country you're looking for and you require additional information, please contact your Account Manager.

Country Australia Brazil Canada Colombia Estonia France Germany India Indonesia Ireland Italy Mexico Netherlands New Zealand Philippines Portugal Singapore Spain Switzerland

Terminations in Australia can be complex. It is important to advise Deel as soon as possible of your intention to terminate an employee. There are generally five different compliant methods to terminate an employment agreement:

Termination with Cause
Termination for Redundancy or Business Reasons
Resignation
Mutual Termination
Termination During the Probation Period

Terminations with Cause

You must inform Deel at least 30 days prior to terminating any employee with cause, except in cases of properly documented gross misconduct.

Australian law expressly establishes the grounds to terminate an employee with cause. Any termination should be expressly justified to be compliant. It is not possible to terminate an employee without a statutory cause.

In Australia, termination with cause - also known as summary dismissal - allows the employer to dismiss the employee immediately and without notice.

To terminate an employee with cause the conduct in question must amount to misconduct, as opposed to mere negligence or incompetence, and must indicate that the employee either no longer intends to be bound by the employment contract or intends to fulfill it in a manner substantially inconsistent with their obligations.

The misconduct must be substantiated and properly documented, and the reasons for termination must be explained to the employee who must also be provided with an opportunity to inquire about the termination.

Grounds for Termination with Cause

Willful or deliberate behavior by the employee that is inconsistent with the continuation of the contract of employment
Conduct that causes a serious and imminent risk to a person’s health or safety, or the reputation, viability, or profitability of the employer’s business.

Examples include:

Performance issues that persist after having been given the opportunity to improve
Attendance issues
Stealing company money or property
Misconduct, including any form of material violation of provisions in the employment agreement, policy, or applicable law
Falsifying records
Harassment
Violence

Legal Notice Period for Termination with Cause

How much notice must be given?

Although a notice of termination is not legally required and the employee can be immediately terminated, it is recommended that a notice be served to the employee as a written confirmation of the termination of employment.

How is a notice for termination with cause delivered?

The notice of termination may be delivered personally to the employee, left at the employee’s last known address, sent by pre-paid post to the employee’s last known address, or (if the employee agrees) sent by email.

Severance for Termination with Cause

Is severance required?

No severance is owed to employees who are terminated with cause in Australia.

What is the term for final payment?

Within seven days after the termination of the employment agreement.

Termination for Redundancy or Other Business Reasons

Australian law expressly establishes the business reasons to terminate an employee. Any termination related to business reasons must be expressly justified to be compliant with the law. It is not possible to terminate an employee without a statutory cause. Termination for redundancy is allowed.

Termination for redundancy occurs when the particular set of functions, duties, and responsibilities that are attached to an employee’s position ceases to exist after changes in the operational requirements of the business.

Termination for redundancy or business reasons requires that:

The employer no longer requires the employee’s job to be performed by anyone because of changes in the operational requirements of the employer’s business; and
The employer has complied with the obligation to consult about redundancy, in accordance with an applicable modern award or enterprise agreement.

A modern award places obligations on the employer concerning the minimum terms and conditions of the employment for employees covered by the award. Modern awards cover particular sectors or occupations. These do not apply to high-income employees (the high-income threshold is defined by law and reviewed every four years).

An enterprise agreement has certain terms and conditions negotiated between an employer (or more than one employer) and a trade union or unions, or at least two employees.

Although the law does not provide a set of criteria when selecting employees for redundancy, any form of discrimination in the selection may give rise to a claim of unfair dismissal.

Grounds for Termination for Redundancy or Business Reasons

There is a reorganization within the business
The duties done by a particular employee are reallocated among other employees
The tasks performed by the employee are automated
The employer becomes insolvent

Legal Notice Period for Termination for Redundancy or Business Reasons

How much notice is required?

Employees who are engaged for a specific period of time or to accomplish a specific task or objective after which their employment ceases are not entitled to notice, regardless of their length of service.

The notice period for all other employees depends on their years of continuous service:

1 year or less: 1 week
3 years or less: 2 weeks
5 years or less: 3 weeks
Over five years: 4 weeks

Employees 45 years of age or older that have complicated at least 2 years of continuous services are entitled to an additional 1 weeks notice.

Payment in lieu of notice is permitted.

How is notice delivered?

Notice may be delivered personally to the employee, left at the employee’s last known address, sent by pre-paid post to the employee’s last known address or, if agreed to by the employee, sent by email.

Important: If 15 or more employees will be terminated for redundancy, employers need to give written notification to Services Australia of the proposed dismissals.

Severance for Termination for Redundancy or Business Reasons

Is severance required?

Severance depends on the employee’s years of service, subject to any applicable modern award.

Employees who are engaged for a specific period of time or to accomplish a specific task or objective after which their employment ceases are entitled to severance in the amount of the remaining term of the contract.

Less than one year: no severance
1 year: 4 weeks
2 years: 6 weeks
3 years: 7 weeks
4 years: 8 weeks
5 years: 10 weeks
6 years: 11 weeks
7 years: 13 weeks
8 years: 14 weeks
9 years: 16 weeks
Employees with at least 10 years of service are entitled to 12 weeks of pay as the employee also qualifies for the full benefit of long service leave, which is a period of paid leave granted to an employee after working for the employer for a specific period.

Important: employees accrue vacation and statutory leave during the notice period and will be paid in respect of any accrued but unused statutory annual leave.

What is the term for payment of severance or final payment to the employee?

Within seven days after the termination of the employment agreement.

Resignation

An employee may resign at any time by delivering a signed letter of resignation in accordance with any applicable notice period in the employment agreement.

Legal Notice Period for Resignation

How much notice is required?

The notice period is stated in the employment agreement.

How is a notice of resignation delivered?

The letter of resignation must be signed with wet ink.

Severance for Resignation

There is no severance payment when an employee resigns.

Mutual Termination

In mutual termination, both the employer and employee mutually agree to terminate the employee’s employment for any reason. Mutual termination will always entail severance.

Commons Reasons for Mutual Termination

The employee is potentially contentious or litigious
The employee cannot be terminated with cause or for redundancy
The employee has negotiated their mutual termination with the client

Legal Notice Period for Mutual Termination

No notice is needed.

Severance for Mutual Termination

Is severance required?

Severance to be mutually negotiated and agreed upon.

What is the term of final payment to the employee?

Within seven days after the termination of the employment agreement.

Termination During the Probation Period

An employer may unilaterally terminate an employee during the probation period if it can be demonstrated that the employee is not suitable for the job.

The notice period for termination under probation will be in the employment agreement as established by local law.

Although there is no statutory limit on the length of the probationary period, the period usually lasts from three to six months.

Grounds for Termination During the Probation Period

Poor performance
Bad behavior
Persistent lateness/absence from work

Legal Notice Period for Termination During Probation

Notice must be given at least 1 week prior to the effective date of the termination. Fixed term employees are not entitled to notice.

Payment in lieu of notice is permitted, but in such case the employer must pay the employee at least the amount that the employee would have earned had employment continued through the end of the probation period.

The notice should specify the period of notice given or payment in lieu of notice, and the date on which employment will end.

Severance During the Probation Period

Is severance required?

No severance payment is required for terminations during the probation period in Australia.

What is the term for payment of severance or final payment to the employee?

Within seven days after the termination of the employment agreement.

Terminations in Brazil are not complex. There are generally five different compliant methods to terminate an employment agreement:

Termination with Cause
Termination Without Cause
Resignation
Mutual Termination
Termination During the Probation Period

Termination with Cause

The law expressly establishes the grounds to terminate an employee with cause. Any termination with cause should be expressly justified to be compliant with the law. It is not possible to terminate an employee with cause without statutory grounds.

All disciplinary actions for termination for cause, including warnings, suspensions, and dismissal must be take as soon as the employer becomes aware of the misconduct. Failure to take action will be seen as “tacit forgiveness”.

In cases of repetitive misconduct that does not warrant immediate dismissal, the employer must notify the employee in writing of any action including warning or suspension. All disciplinary letters must be sent to the employee by email.

Grounds or Reasons for Termination with Cause

Act of improbity
Recklessness of conduct or malpractice
Frequent negotiation on your own or someone else's account without the employer's permission, and when it constitutes an act of competition with the company for which the employee works, or is detrimental to the service
Criminal conviction passed in res judicata, if there was no suspension of the sentence
Negligence in the performance of the employee’s functions
Frequent on-the-job drunkenness
Breach of privileged company information
Act of indiscipline or insubordination
Job abandonment
Acts harmful to the honor or to the good reputation of the company while on duty, or any physical offences against others while on duty except in the case of legitimate self-defense or defense of others
Constant gambling
Loss of license or other requirements established by law for the exercise of the profession as the result of the employee's willful conduct
The practice, duly proven in an administrative inquiry, of acts that threaten national security

Legal Notice Period for Termination with Cause

How much notice must be given?

No notice needed

How is notice of termination with cause delivered?

The letter of termination can be sent by email, and the signature of both parties can be digital/electronic.

Severance for Termination with Cause

Is severance still due under this type of termination?

No severance is owed to employees who are terminated with a just cause in Brazil.

The employee will receive any outstanding salary and proportional vacation and other entitlements, including 13th salary.

What are the terms of payment of severance or final payment of wages owed to the employee?

10 days after the termination of the employment agreement

Termination Without Cause

In Brazil, terminations for redundancy and other business reasons fall into the category of termination without cause. The employer is free to decide on the dismissal of any employee and does not need to justify the decision.

Legal Notice Period for Termination Without Cause

How much notice must be given?

Legal notice period is based on the length of an employee’s service. Employees are entitled to 30 days notice for employment of less than 1 year, and an additional 3 days for each additional year up to a maximum of 90 days total notice.

The employer must choose one option:

Give the employee 30 days working notice and pay an indemnity for the additional days notice above 30 days; or
Pay the full legal notice period.

Employees on working notice will have their hours reduced by 2 per day, or are entitled to 7 paid days off work at the end of the notice period.

How is notice of termination without cause delivered?

The letter of termination can be sent by email, and the signature of both parties can be digital/electronic.

Severance for Termination Without Cause

In Brazil, all employees who are terminated without cause are entitled to severance pay.

An employee terminated without cause is owed all outstanding salary for days worked, payment for any unworked legal notice period, proportional annual vacation and other applicable entitlements including 13th salary. In addition, the employee is entitled to 40% of the FGTS (Social Security Fund) balance as well as an additional payment of ⅓ of any vacation balance.

Resignation

Employees can resign at any time by providing 30 days written notice.

Legal Notice Period for Resignation

30 days notice

Severance for Resignation

Is severance required?

No severance is owed to employees who resign in Brazil. Employees are entitled any outstanding salary and proportional vacation and other entitlements, including 13th salary and an additional payment of ⅓ of any vacation balance.

What is the term of final payment

10 days after the termination of the employment agreement

Mutual Termination

Employers and employees may agree to terminate their employment relationship at any time by giving their mutual consent and agreeing on the terms. This form of termination will always entail payment of severance.

Commons Reasons for Mutual Termination

The employee is potentially contentious or litigious
The employee has negotiated their mutual termination with the client

Legal Notice Period for Mutual Termination

How much notice must be given?

The employer must give the employee a 15 day notice or pay an indemnity equal to the notice.

Severance for Mutual Termination

Is severance required?

In Brazil, all employees who mutually agree to their termination are entitled to severance pay.

As a minimum, the employee is a owed all outstanding salary for days worked, 50% payment for any unworked legal notice period, proportional annual vacation and other applicable entitlements including 13th salary. In addition, the employee is entitled to 20% of the FGTS (Social Security Fund) balance as well as an additional payment of ⅓ of any vacation balance.

What is the term of payment for final payment?

10 days after the termination of the employment agreement.

Termination During the Probation Period

The employer or the employee can terminate the relationship unilaterally during the probation period without expressing a cause. No notice is required unless otherwise agreed to in the employment agreement.

Legal Notice Period for Termination During Probation

How much notice must be given?

No notice is required unless otherwise provided for in the employment agreement

How is notice for termination during the probation period delivered?

The letter of termination can be sent by email, and the signature of both parties can be digital/electronic.

Severance for Termination During the Probation Period

Is severance required?

In Brazil, all employees who are terminated during the Probation Period are entitled to severance pay.

The employee is owed all outstanding salary for days worked as well as a payment of 50% of the remuneration that would have been earned through the remainder of the probation period. The employee is also entitled to all proportional annual vacation, including an additional payment of ⅓ of the vacation balance and other applicable entitlements. In addition, the employee is entitled to 40% of the FGTS (Social Security Fund) balance.

There is no payment in lieu of legal notice except in the event of a reciprocal early termination clause in the employment agreement.

What is the term of payment for final payment?

10 days after the termination of the employment agreement.

Terminations in Canada can be exceedingly complex due to provincial differences, nuances between statutes and common law, and provincial case law. It is important to advise Deel as soon as possible of your intention to terminate an employee. There are generally five different compliant methods to terminate an employment agreement in Canada:

Termination with Cause
Termination without Cause
Resignation
Mutual Termination
Termination During the Probation Period

Termination with Cause

Canadian legislation expressly establishes the causes to terminate an employee and in most provinces the bar for such termination is very high. Any termination with cause in Canada should be expressly justified to be compliant with the law. It is generally not possible to terminate an employee without a statutory cause.

Canada’s courts place a high burden on employers seeking to terminate an employee with cause. In order to terminate an employee with cause Deel will require a robust investigation and irrefutable evidence of the cause. Determinations will be made by Deel’s legal team on a case-by-case basis.

A termination with cause requires both:

A robust investigation by the client that produces clear evidence of the alleged cause; and
That the alleged cause was in clear contravention of the company handbook, applicable provincial employment standards legislation, or the offer of employment.

Grounds for Termination with Cause

Attendance issues, including absenteeism and lateness
Stealing company money or property
Misconduct meaning any form of material violation of the provisions in the employment agreement, policy, or applicable law
Falsifying Records
Workplace harassment and violence
Dishonesty, including. fraud, theft, breach of trust, deception
Insubordination and insolence

Please note that job performance issues are generally not grounds for termination with cause”in Canada.

Legal Notice Period for Termination With Cause

How much notice must be given?

No notice is required.

How is a notice for termination with cause delivered?

The termination letter can be sent by email, and the signature of both parties can be digital/electronic.

Severance for Termination with Cause

Is severance required?

No severance is owed to employees who are terminated with cause in Canada. However, in Canada, additional severance may be advisable in exchange for a release and this will always be Deel’s recommendation to clients.

Termination Without Cause

Provincial legislation expressly establishes the possibility of terminating an employee without cause for redundancy and business reasons, including employee job performance. Termination for business reasons does not need to be expressly justified to be compliant with the law. Most provinces recognize certain employees as protected from such termination, such as those who are temporarily disabled and pregnant employees.

Grounds for Termination Without Cause

Business Reasons, including company downsizing or restructuring
Performance Issues
Lack of organizational and cultural fit
Any other situation which cannot be justified as a with cause termination in any given province

Legal Notice Period for Termination Without Cause

How much notice must be given?

Notice in Canada will vary depending on the following:

The applicable provincial employment standards legislation
The relevant provincial common-law precedent

The reasonableness of a common-law notice period is based on the particulars of the case, with regard to the character of employment (position, salary, responsibility), the length of service, the age of the employee, and the availability of similar employment having regard to the experience, training, and qualifications of the employee.

How is a notice for Termination without cause delivered?

The termination letter can be sent by email, and the signature of both parties can be digital/electronic.

Severance for Termination Without Cause

Is severance required?

Yes, this is by far the most common type of termination in Canada and will always require some degree of either statutory severance or common-law severance:

Statutory severance depends on applicable provincial employment standards legislation and the length of an employee’s service.
Common-law severance compensates an employee for the amount of time it will take them to find comparable work. There is no formula for common-law severance, and it is determined on a case-by-case basis.

What is the term of payment for severance or final wages to the employee?

Usually 10 to 15 days after the termination of the employment agreement.

Resignation

The employee’s signature is required on the resignation letter.

The employee can resign at any time by providing a signed resignation letter.

Legal Notice Period for Resignation

How much notice must be given?

No notice is legally required

Are there local requirements or restrictions?

The resignation letter must be signed by the Employee. Due to local payroll cut-off times it may be necessary to adjust resignation dates. Clients should contact Deel as soon as practicable to process an employee resignation.

Severance for Resignation

Is severance required?

No severance is owed to employees who resign in Canada. However, additional severance may be advisable in exchange for a release.

Mutual Termination

Mutual termination requires the employee’s sign-off and always entail severance above statutory requirements.

Mutual termination agreements must be reviewed by Canadian counsel. If you are seeking to negotiate a termination agreement with an employee, please contact Deel well in advance of the target termination date.

There are no mandatory grounds to make a mutual termination of the employment contract. The parties can agree to terminate their employment relationship by giving their mutual consent and agreeing on the terms of the termination.

Commons Reasons for Mutual Termination

The employee is potentially contentious or litigious
The Employee cannot be terminated with or without cause, or terminating without cause may be contentious
The employee has negotiated their mutual termination with the client

Legal Notice Period for Mutual Termination

No notice is legally required as this is a negotiated termination and the effective date is determined by mutual agreement.

Severance for Mutual Termination

Is severance required?

Mutual termination will always include some payment of severance based on common-law estimates for the applicable province.

What is the term for payment of severance or final payment to the employee?

Usually 10 days after the termination of the employment agreement

Termination During the Probation Period

The employer can terminate the employment relationship unilaterally during the probation period without cause provided that the termination does not constitute discrimination and the employee does not have additional legal protections (such as a disability, pregnancy, or a union).

Legal Notice Period for Termination During Probation

No notice is legally required.

Severance for Termination During the Probation Period

No severance is owed to employees who are terminated during the probation period. However, additional severance may be advisable in exchange for a release.

Terminations in Colombia can be complex. There are generally five different compliant ways to terminate an employment agreement in the country, these include:

Termination with Cause
Termination Redundancy or Other Business Reasons
Resignation
Mutual Termination
Termination During the Probation Period

Termination with Cause

In Colombia, multiple grounds exist for termination with cause. Deel’s legal team must evaluate grounds for termination on a case-by-case basis to ensure that a lawful and explicit cause applies. Deel requires at least 30 days notice to terminate an employee with cause in Colombia.

Termination with cause in Colombia requires the employer to conduct a robust disciplinary process in line with the Constitutional Court’s provisions regarding disciplinary due process.

Grounds for Termination with Cause

Attendance issues
Stealing company money or property
Misconduct (any form of material violation of provisions in the employment agreement, policy, or applicable law)
Falsifying Records
Harassment
Violence

Specific reasons may be found in:

The Employee’s Contract
The Company Handbook
The Colombian Labor Code

Legal Notice Period for Termination with Cause

How much notice must be given?

10 calendar days before the initiation of the disciplinary process.

How is notice given?

The letter of termination can be sent by email, and the signature of both parties can be digital/electronic.

Severance for Termination with Cause

Severance payment is not required for termination with cause in Colombia

Termination for Redundancy or Business Reasons

Employees in Colombia may be terminated for redundancy or other business reasons. This is referred to as termination without cause. Compliant terminations must not violate the employment rights or constitutional rights of the terminated employee.

Termination without cause always implies the payment of a statutory severance.

Limitations on Termination for Redundancy or Business Reason

This form of termination is generally viable for any reason, as long as they do not violate an employee's constitutional or employment rights. You must inform Deel of all the facts and circumstances of any termination without cause.

Limitations to this form of termination are:

If the employee is pregnant, there will be exceptions to the viability of this termination.
If the employee is sick or on sick leave, there will be exceptions to the viability of this termination
If the employee’s constitutional or employment rights are being violated. This includes union protections, discrimination, among others.

Legal Notice Period for Termination for Redundancy or Business Reasons

How much notice must be given?

10 calendar days.

How is notice given?

The letter of termination can be sent by email, and the signature of both parties can be digital/electronic.

Severance for Termination for Redundancy or Business Reasons

Is severance required?

Severance is always due for terminations without cause in Colombia

Fixed contract: All payments owed for the rest of the contract, including monthly salary, 13th and 14th salaries and all other statutory benefits which would be owed during the term of the contract.

Indefinite/permanent contract: based on years of service

30 days for 1 year or less of service
20 days for each year or proportional year thereafter

What is the term of payment?

The day after the termination of the employment agreement or a reasonable time that does not exceed 15 days.

Resignation

Employees in Colombia may resign at any time. There is no statutory requirement for notice and any contractual notice period is invalid. The employee's signature is required on the resignation letter.

Legal Notice Period for Resignation

How much notice must be given?

None

How must notice be given?

The resignation must come from the Employee unilaterally and must not be forced or coerced by the Client or by Deel.
The resignation letter must identify the employee’s last day.
The resignation letter must be signed by the employee.

Severance for Resignation

There is no severance for resignation in Colomiba

Mutual Termination

In mutual termination, both the employer and employee mutually agree to terminate the employee’s employment for any reason. Mutual terminations will always entail a severance.

Common Reasons for Mutual Termination

The employee is potentially contentious or litigious
The Employee cannot be terminated with or without cause
The employee has negotiated their mutual termination with the client

Legal Notice Period for Mutual Termination

No notice period is required.

Severance for Mutual Termination

Although no statutory requirement for severance exists it is advisable to offer a severance to reduce the risk of the mutual agreement being contested in court.

Termination During the Probation Period

During the probation period, the employee can terminate the relationship unilaterally without expressing a cause.

Employers may not arbitrarily terminate the employment contract during the probation period if such termination would otherwise be discriminatory or unlawful. Employers must have clear reasons connected to an employee's performance or workplace behavior.

The notice period for termination under probation will be in the employment agreement.

Grounds for Termination During Probation

Poor performance
Bad behavior
Persistent lateness/absence from work

Legal Notice Period for Termination During Probation

No notice is required for terminations during probation periods.

Severance for Termination During Probation

Severance is not due for terminations during probation periods.

Terminations in Estonia can be complex and the terms applicable to any termination will depend on whether the contract is fixed or indefinite, and whether or not the termination occurs during the probation period.

In Estonia, employment agreements may expire, or they may be terminated as the result of ordinary cancellation or extraordinary cancellation, including termination with cause.

There are generally five different compliant methods to terminate an employment agreement:

Termination with Cause
Termination for Redundancy or Other Business Reasons
Resignation
Mutual Termination
Termination During the Probation Period

Termination with Cause

In Estonia, both employers and employees can terminate the employment relationship unilaterally in extraordinary circumstances.

Employee-initiated terminations may result in an employer-obligation to pay severance.

For Employers, the law expressly establishes the causes to terminate an employee. Any termination should be expressly justified to be compliant with the law. It is not possible to terminate an employee without a statutory cause. You must inform Deel 30 days prior to terminating any employee with cause, except in cases of properly documented serious misconduct.

While there is no uniform disciplinary process, employers are expected to substantiate termination with proof of cause. Employees must be notified of the grounds for their termination in writing.

Grounds for Termination with Cause

Employees may terminate the employment relationship with cause if:

the employer has harassed the employee
the employer has considerably delayed the payment of wages
Continued employment poses a real threat to the employee's life, health, morals, or reputation

Employers may terminate the employee with cause on the following grounds:

Reduced capacity for work due to state of health. A reduced capacity for work is presumed if the employee’s state of health does not allow for the performance of work duties for over four months.
Decreased capacity for work due to insufficient work skills, unsuitability for the position, or inadaptability, that does not allow for the continuation of the employment relationship
Breach of duties including disregard for the employer’s reasonable instructions and warnings
Working in a state of intoxication
Theft, fraud, or another act causing the loss of the employer’s trust in the employee
Causing a third party’s distrust in the employer
Wrongfully - to a significant extent - damaging the employer’s property or causing a threat of such damage;
Breach of confidentiality or restriction of trade

Legal Notice Period for Termination with Cause

How much notice must be given?

An employee is not obligated to give the employer advance notice for termination with cause.

The minimum notice the employer needs to give depends on the duration of the employment relationship with the employee:

Less than 1 year: at least 15 calendar days
Less than 5 years: at least 30 calendar days
Less than 10 years: at least 60 calendar days
Over 10 years: at least 90 calendar days

The notice period may not apply for both employee and the employer if, considering all circumstances and mutual interests, it cannot be reasonably demanded that the performance of the contract be continued until the expiry of the agreed term or term for advance notice.

How is notice given?

The termination letter can be signed with wet ink and delivered directly to the employee or sent by post mail.

The termination letter can also be sent by email, where the signature of both parties is digital or electronic.

Severance for Termination with Cause

Is severance required?

No severance is owed to employees who are terminated with cause in Estonia.

If an employee cancels the employment contract extraordinarily on the grounds that the employer is in fundamental breach of the contract, the employer shall pay the employee compensation of up to three months average wages.

What is the term of payment?

Severance and final pay must be paid on the date of termination of the employment agreement.

Termination for Redundancy or Other Business Reasons

The law expressly establishes the business reasons to terminate an employee. Any termination related to business reasons must be expressly justified to be compliant with the law. It is not possible to terminate an employee without a statutory cause. Termination for redundancy is allowed.

Before terminating an employee for redundancy or other business reasons an employer is obligated to offer other work to the employee and if necessary organize in-service training. Changes in an employee's working conditions may also be required unless this would cause hardship for the employer.

Except in cases of bankruptcy or a cessation of business, when cancelling a fixed-term employment contract for business reasons the employee is entitled compensation in the amount that they would have earned until the expiry of the contract.

Please note that employers cannot cancel the contract of pregnant women or employees raising children under three years of age for business reasons.

Grounds for Termination for Redundancy or Other Business Reasons

Decrease in the work volume, reorganization of work, or other cessation of work (lay-off)
Cessation of the activities of the employer
Declaration of bankruptcy by employer or termination of bankruptcy proceedings, without declaring bankruptcy, by abatement

Legal Notice Period for Termination for Redundancy or Other Business Reasons

How much notice must be given?

The minimum advance notice the employer needs to give depends on the duration of the employment relationship with the employee:

Less than 1 year: at least 15 calendar days
Less than 5 years: at least 30 calendar days
Less than 10 years: at least 60 calendar days
Over 10 years: at least 90 calendar days

The notice period may not apply if, after considering all the circumstances and mutual interests, it is not reasonable to demand the performance of the contract until expiry or the end of the notice period.

How is notice given?

The termination letter can be signed with wet ink and delivered directly to the employee or sent by post mail.

The termination letter can also be sent by email, where the signature of both parties is digital or electronic.

Severance for Termination for Redundancy or Other Business Reasons

Is severance required?

Employees are entitled to a minimum of one-month of their average wages when terminated for redundancy.

What is the term of payment?

Severance and final pay must be paid on the date of termination of the employment agreement.

Resignation

The employee may resign at any time by providing 30 days notice, or 15 days during the probation period.

Legal Notice Period for Resignation

30 days, or 15 days during the probation period

Severance for Resignation

Is severance required?

There is no severance payment when an employee resigns.

What is the term of payment?

Final pay must be paid on the date of termination of the employment agreement.

Mutual Termination

In mutual termination, both the employer and employee mutually agree to terminate the employee’s employment for any reason. Mutual terminations will always entail a severance.

Common Reasons for Mutual Termination

The employee is potentially contentious or litigious
The employee cannot be terminated with or without cause
The employee has negotiated their mutual termination with the client

Legal Notice Period for Mutual Termination

No notice is needed.

Severance for Mutual Termination

Is severance required?

While no severance is required by law, negotiating a mutual termination agreement will always entail the offer of a severance package.

What is the term of payment?

Severance and final pay must be paid on the date of termination of the employment agreement.

Termination During the Probation Period

The employer cannot terminate the relationship unilaterally during the probation period without expressing a cause consistent with the purpose of the probation period. However, employees are free to resign at their discretion. The notice period for termination under probation will be in the employment agreement.

Grounds for Termination During the Probation Period

Any termination during the probation period should be consistent with the purpose of probation, that is assessing an employee's health, knowledge, skills, abilities, and personal characteristics to ensure that they correspond to the level required for the performance of job duties.

Grounds for termination during the probation period include:

Poor performance
Bad behavior
Persistent lateness/absence from work
Insufficient education or qualification
Health conditions preventing the proper performance of the work duties

Legal Notice Period for Termination During Probation

How much notice must be given?

15 days or as provided in the employment agreement

How is notice given?

The termination letter can be signed with wet ink and delivered directly to the employee or sent by post mail.

The termination letter can also be sent by email, where the signature of both parties is digital or electronic.

Severance for Termination During the Probation Period

Is severance required?

No severance is owed to employees who are terminated during the probation period in Estonia.

What is the term of payment?

Final pay must be paid on the date of termination of the employment agreement.

Terminations in France are complex. There are generally six different compliant methods to terminate an employment Agreement in France:

Termination for Disciplinary Reasons
Termination for Non-Disciplinary Reasons
Termination for Incapacity
Resignation
Mutual Termination
Termination During the Probation Period

Please note that due to the Deel EOR employment relationship, terminations for business reasons and redundancy require a negotiated mutual termination agreement with employees.

Termination for Disciplinary Reasons

The law expressly establishes the causes to terminate an employee. Any termination should be expressly justified to be compliant with the law. It is not possible to terminate an employee without a statutory cause. You must advise Deel at least 30 days prior to any termination for disciplinary reasons.

Termination for disciplinary reasons may occur when an employer considers that the behavior of an employee is inconsistent with the normal performance of the employment contract and constitutes professional misconduct, preventing the continuation of the employment relationship.

The termination must be justified and documented. It is not enough simply to allege or believe that misconduct has occurred. It must be documented and tested.

A formal disciplinary process that includes notifying the employee of the reasons for their dismissal, and providing the employee with an opportunity to speak in their own defense. The disciplinary process cannot be initiated more than two months after the discovery of the facts that form the basis for the termination. You should inform Deel immediately upon such discovery.

Please note that terminations for professional incompetence and poor performance are usually non-disciplinary terminations in France. They may only be pursued as disciplinary terminations when the poor quality of work or results is caused by willful absenteeism or misconduct.

Grounds for Termination for Disciplinary Reasons

Gross misconduct, including unjustified prolonged absence or frequent unjustified short absences, violent behavior, threats, bullying, financial misconduct, refusal to work
Serious misconduct including repeated minor faults, negligence, refusing a change in working conditions.

Legal Notice Period for Termination for Disciplinary Reasons

How much notice must be given?

The notice period will depend on several factors including the seniority level fo the employee, the terms of employment, and the grounds for termination. Deel’s legal team will need to evaluate and confirm the notice period on a case-by-case basis.

How is notice given?

Registered letter sent by French post or by R24.

Severance for Termination for Disciplinary Reasons

Is severance required?

No severance is owed to employees who are terminated for gross or serious misconduct.

Employees are entitled to all accrued but unused vacation and any other entitlements covered by their Collective Bargaining Agreement such as the réserve financière.

What is the term of payment?

The date of termination of the employment agreement.

Termination for Non-Disciplinary Reasons

The law expressly establishes the reasons to terminate an employee for non-disciplinary reasons. Any termination should be expressly justified to be compliant with the law. It is not possible to terminate an employee without a statutory reason.

Non-discplinary terminations are the result of poor performance or professional incompetence that make it impssible for the to continue the employment relationship. A formal process must be followed that includes notifying the employee and disclosing the reasons for the termination and providing the employee an opportunity to offer an explanation.

Terminations for disciplinary reasons related to professional incompetence or poor performance may only occur when the poor quality of work or results is caused by willful absenteeism or misconduct.

Grounds for Termination for Non-Disciplinary Reasons

Professional incompetence, defined as the lasting inability of an employee to satsifactorly perform a job corresponding to their qualifications.

Poor performance, defined as the failure to meet realistic objectives compatible with the company’s market situation as a result of professional inadequacy or fault.

Dismissal may not be based on a disciplinary failure. It must be based on the precise, objective, and verifiable facts attributable to the employee.

Legal Notice Period for Termination for Non-Disciplinary Reasons

How much notice must be given?

How is notice given?

Registered letter sent by French post or by R24.

Severance for Termination for Non-Disciplinary Reasons

Is severance required?

Severance is owed to employees terminated for non-disciplinary reasons. Severance will be determined by the terms of any Collective Bargaining Agreement. Employees are also entitled to al accrued by unused vacation and other entitlements such as theréserve financière.

What is the term of payment?

The date of termination of the employment agreement.

Termination for Incapacity

Termination for incapacity is a personal, non-disciplinary dismissal. It occurs when an employee becomes incapable of carrying out their duties by reason of medical unfitness.

These terminations may only occur as the result of a formal process that includes a declaration by the doctor-at-work that the continuation of employment would be detrimental to the health of the employee or that their state of health is a barrier to any reclassification of the job. Employers must demonstrate that it is impossible to reclassify the employee, or that the employee has refused reasonable redeployment positions.

Reasons for Termination for Incapacity

Medical incapacity resulting from a work-related accident or illness
Medical incapacity resulting from a non-work related accident or illness

Legal Notice Period for Termination for Incapacity

No notice is needed subsequent to the formal process.

Severance for Termination for Incapacity

Is severance required?

For non-work related incapacity the employee is entitled to:
1/4 monthly salary for each of the first 10 years of service

1/3 monthly salary for each year after 10 years

For work-related incapacity - that is occupational injury or illness - the severance is double the amount for non-work related incapacity.

What is the term of payment?

The date of termination of the employment agreement.

Resignation

The employee can resign at any time by providing notice in accordance with their employment agreement and Collective Bargaining Agreement (CBA).

Legal Notice Period for Resignation

How much notice must be given?

The employee must give notice as required by their employment agreement or collective bargaining agreement, usually:

ETAM: one month notice regardless of seniority
Executive: three months notice regardless of seniority

The employer may exempt the employee from serving the notice period.

How is notice given?

Registered letter sent by French post or by AR24.

Severance for Resignation

Is severance required?

There is no severance payment when an employee resigns. Employees are entitled to their reserve financière.

What is the term of payment?

The date of termination of the employment agreement.

Mutual Termination

In mutual termination, both the employer and employee mutually agree to terminate the employee’s employment for any reason. Mutual terminations will always entail payment of a severance.

Mutual terminations must follow a formal procedure that includes notifying and obtaining the approval of the relevant Regional Directorate for Economy, Employment, Labor, and Solidary (DREETS).

The law provides for a minimum severance. Following a negotiated mutual termination agreement, either party has 15 days to withdraw from the agreement without giving any reason. For this reason, negotiated mutual terminations may include a severance greater than the required minimum.

Reasons for Mutual Termination

The employee is potentially contentious or litigious
The employee cannot be terminated for disciplinary or non-disciplinary reasons
The employee has negotiated their mutual termination with the client

Legal Notice Period for Mutual Termination

No notice is needed. However, the termination process takes at least 45 days.

Severance for Mutual Termination

Is severance required?

Yes, mutual termination will always entail payment of a severance. The minimum severance is established by French Law and the Collective Bargaining Agreement. Because of the complexity of the process, it is not uncommon for the parties to negotiate severance greater than the required minimum. Employees are entitled to all accrued but unused vacation and any other entitlements such as the réserve financière.

What is the term of payment?

The date of termination of the employment agreement.

Termination During the Probation Period

Both the employer and the employee can terminate the relationship unilaterally during the probation period without expressing a cause. The notice period for termination under probation will be in the employment agreement.

While termination during the probation period does not require any specific cause, there are special limitations that may prevent termination.

Special Limitations on Termination During Probation

Protected employees, including elected staff representatives may not be terminated during the probation period without obtaining the approval of the Labor Inspectorate.

Employees with work related injuries or illnesses may not be terminated during the probation period except in cases of serious misconduct or for reasons demonstrably not connected to the illness or injury.

Termination during probation must not be discriminatory, including for sick leave or by reason of pregnancy.

Legal Notice Period for Termination During Probation

How much notice must be given?

Notice depends on who is initiating the termination, and the length of service.

Termination by the employer:

Less than 8 days of work: 24 hours notice
8 days - 1 month of work: 48 hours notice
More than 1 month of work: two weeks notice
More than 3 months of work: on month notice

Termination by the employee:

Less than 8 days of work: 24 hours notice
More than 8 days of work: 48 hours notice

How is notice given?

Registered letter sent by French post or by AR24.

Severance for Termination During Probation

No severance is owed to employees who are terminated during the probation period in France.

Employees are entitled to any accrued but unused vacation and their reserve financière.

Terminations in Germany are complex. There are generally five different compliant methods to terminate indefinite-term employment agreements in the country. Employment agreements for fixed - or definite - terms cannot be terminated prior to the end of the term except by a negotiated mutual termination agreement.

Termination with Cause
Termination for Redundancy or Business Reasons
Resignation
Mutual Termination
Termination During the Probation Period

Termination with Cause

In Germany, employees can be terminated with cause for serious misconduct such as violence, theft, or harassment. The misconduct must be so serious that it makes the continued employment relationship untenable, even temporarily. You must inform Deel 30 days prior to terminating an employee with cause, except in cases of properly documented serious misconduct.

Terminations with cause must follow a disciplinary process that in most cases must include a notification to the employee that outlines the facts that led to the initiation of the process as well as a warning that termination could result. Except in cases of the most serious misconduct, employees should be given an opportunity to modify their behavior to avoid termination.

Exceptions to this include where a serious breach of duty is involved that cannot be resolved by a change in behavior or where no change in behavior can reasonably be expected.

Grounds for Termination with Cause

Attendance issues
Stealing company money or property
Misconduct, including any form of material violation of provisions in the employment agreement, policy, or applicable law
Falsifying records
Harassment
Violence
Violation of the company code of conduct or ethics policy
Going on an unauthorized holiday

Legal Notice Period for Termination with Cause

How much notice must be given?

No notice is required. However the disciplinary process must be initiated no more than 2 weeks after the discovery of the facts that give rise to the termination.

How is a notice for termination with cause delivered?

The notice of termination must be delivered in writing, and signed with wet ink.

The letter may be personally delivered or deposited in the mailbox at their home address. Proof of delivery is required in both cases. If sent by post a registered letter is required.

The employee is not obligated to sign the letter, but if the letter is delivered personally it is normal practice to request a signature.

Severance for Termination with Cause

Is severance required?

No severance payment is required for terminations with cause in Germany.

What is the term for final payment?

Final pay must be paid on the date of termination of the employment agreement.

Termination for Redundancy or Business Reasons

German law expressly establishes the business reasons to terminate an employee. Any termination related to business reasons must be expressly justified to be compliant with the law. It is not possible to terminate an employee without a statutory reason. Termination for redundancy is allowed.

In selecting employees to terminate for reasons of redundancy, the employer must fulfill certain obligations, including ensuring that there are no other vacancies in the company that can be filled by the employee.

Selection for redundancy is based on certain social criteria (Sozialauswahl). The employer must consider the length of service, age, existing maintenance obligations such as child support, and other factors related to the impact of the termination. The selection is made among employees with the same skill and job level.

When notifying employees of a termination for redundancy, the notification must state that the termination is based on operational or business reasons and there must be at least 3-weeks notice to provide the employee with sufficient time to contest the validity of the termination with the labor court.

Reasons for Termination for Redundancy or Business Reasons

Company downsizing or restructuring
Technology improvements and developments

Legal Notice Period for Termination for Redundancy or Business Reasons

How much notice must be given?

Notice depends on length of service:

Under 2 years: 1 month
2 years: 2 months
5 years: 3 months
8 years: 4 months
10 years: 5 months
12 years: 6 months
15 years: 7 months

Please note that in Germany the notice period begins on the 15th day or the end of the calendar month.

How is a notice for Termination for Redundancy delivered?

The notice of termination must be delivered in writing, and signed with wet ink.

The letter may be personally delivered or deposited in the mailbox at their home address. Proof of delivery is required in both cases. If sent by post a registered letter is required.

The employee is not obligated to sign the letter, but if the letter is delivered personally it is normal practice to request a signature.

Severance for Termination for Redundancy or Business Reasons

Is severance required?

Employees are entitled to severance if they have been employed for mroe than six months and if the company usually has more than 10 employees.

Severance is 1/2 month’s pay for each year of service/ Any period of service of more than 6 months is considered a full year.

What is the term for final payment?

Severance and final pay must be paid on the date of termination of the employment agreement.

Resignation

The employee can resign at any time by providing notice in accordance with their employment agreement.

Legal Notice Period for Resignation

How much notice must be given?

At least 2-weeks during the probation period and 4-weeks after the probation period.

Notice takes effect on the 15th of last day of the calendar month.

How is notice given?

The resignation letter must be signed with wet ink and shared with the employer in accordance with the terms set in the employment agreement.

Severance for Resignation

Is severance required?

No. Employees are entitled to their pay for days worked.

What is the term of final payment?

The date of termination of the employment agreement.

Mutual Termination

In mutual termination, both the employer and employee mutually agree to terminate the employee’s employment for any reason. Mutual terminations will always entail payment of a severance.

Common Reasons for Mutual Termination

The employment agreement is on definite or fixed-term agreement
The employee is potentially contentious or litigious
The employee cannot be terminated with cause or for redundancy or other business reasons
The employee has negotiated their mutual termination

Legal Notice Period for Mutual Termination

Parties can negotiate the last day of work and any garden leave

Severance for Mutual Termination

Is severance required?

Yes. Severance usually includes payment equivalent to the sum of the notice period as well as an incentive for the mutual agreement.

This incentive is calculated based on length of service, professional level, and an indemnity against allegations of unfair dismissal. The incentive is usually equal to 1.5 months per year of service.

For fixed-term contracts, severance amounts must be at least equal to the employee would have earned from their contract absent the termination.

What is the term of payment?

Severance and final pay must be paid on the date of termination of the employment agreement.

Termination During the Probation Period

The employer cannot terminate the relationship unilaterally during the probation period without expressing a cause. The notice period for termination under probation will be in the employment agreement.

Grounds for Termination During the Probation Period

Poor performance
Bad behavior
Persistent lateness/absence from work

Legal Notice Period for Termination During Probation

How much notice must be given?

Two weeks.

How is notice given?

The notice of termination must be delivered in writing, and signed with wet ink.

The letter may be personally delivered or deposited in the mailbox at their home address. Proof of delivery is required in both cases. If sent by post a registered letter is required.

The employee is not obligated to sign the letter, but if the letter is delivered personally it is normal practice to request a signature.

Severance for Termination During the Probation Period

Is severance required?

No severance is owed to employees who are terminated during the probation period in Germany.

What is the term of payment?

Final pay must be paid on the date of termination of the employment agreement.

Terminations in India are complex. There are generally six different compliant ways to terminate an employee in the country:

Termination with Cause
Termination due to Poor Performance
Termination for Redundancy or Business Reasons
Resignation
Mutual Termination
Termination During the Probation Period

Termination with Cause

In India, employees cannot be punished for acts or omissions unless such misconduct is established by the employment agreement and other applicable policies as cause to terminate the employment relationship.

Prior to terminating an employee with cause, a detailed and fair inquiry is required. Employees are entitled to reasonable notice of the allegations against them and are to be provided with an opportunity to be heard in their own defense before an impartial tribunal.

You must inform Deel 30 days prior to terminating an employee with cause, except in cases of properly documented serious misconduct.

Grounds for Termination with Cause

Inattention or negligence in the performance of duties and obligations
Repeated failure to comply with lawful directions of the company and its officers
Breach of the terms of the employment agreement and breach of representations and warranties contained therein
Unethical business conduct, theft or misappropriation of property, whether tangible or intangible, from the company, co-workers, customers, partners, or others
Breach of any statutory duty or for any act or omission adversely affecting the goodwill, reputation, credit, operations, or business of the Company or any of its clients, affiliates, vendors, or customers
Any form of harassment, including but not limited to sexual harassment while employed with the company
Unauthorized disclosure of any confidential information of the company or any of its clients, affiliates, vendors, or customers
Committing any act not in conformity with discipline or good behavior or acceptance or offering of illegal gratification
Habitual, uninformed and unauthorized absence for a period exceeding eight days
Being convicted of any criminal offense, prior to or in the course of employment with the company
Failure to maintain or produce proper work authorizations, required licenses, or certificates
Taking or giving bribes or any illegal gratification, or abetting the same in any form, whatsoever
Falsifying employment or any other Company records, submitting fraudulent claims

Legal Notice Period for Termination with Cause

How much notice must be given?

No notice is needed if misconduct is proven beyond any doubt.

How is notice given?

The termination letter can be sent by email, and the signature of both parties can be digital/electronic.

Severance for Termination with Cause

Is severance required?

No. The employee is only entitled to their final pay for days worked.

What is the term of payment?

15 days after the termination of the employment agreement.

Termination due to Poor Performance

Employers may terminate an employee for poor performance. The basis for such terminations must be well documented, and the process must follow well established judicial precedents.

Employers must have a clear set of criteria for evaluating performance, and communicate specific instances of poor performance to the employee in writing.

Performance Improvement Plans (PIP) must set clear goals to be achieved within a reasonable time-frame. If despite these measures an employee’s performance fails to improve, an employer may have grounds to terminate the employee.

At each step, it is critical to have documentation that demonstrates the employee was made aware of the issues with their performance, was provided sufficient time and support to improve, and specify in what ways they failed to do so.

Legal Notice Period for Termination due to Poor Performance

How much notice must be given?

No notice is needed if terminating within the first 6 months of employment.

At least 30 days, if terminating after 6 months of employment.

How is notice given?

The termination letter can be sent by email, and the signature of both parties can be digital /electronic.

Severance for Termination due to Poor Performance

Is severance required?

Yes, employees that have completed one year of continuous service - interpreted as 240 working days - are entitled to severance in addition to other statutory payments like pay-in-lieu of notice, leave encashment, and gratuity.

Severance is 15 days average pay for each completed year of continuous service.

Average pay is based on the average of the 3 months prior to termination.

What is the term of payment?

15 days after the termination of the employment agreement.

Termination for Redundancy or Business Reasons

Employees may be terminated for redundancy arising out of a genuine business reorganization. Employers must ensure that there are justifiable commercial reasons for the restructuring and follow a prescribed process that includes the last-in, first-out (LIFO rule, notification of government authorities, and making relevant payments to the terminated employees.

Grounds for Termination for Redundancy or Business Reasons

Commercially justified business reasons including company downsizing and restructuring

Legal Notice Period for Termination for Redundancy or Business Reasons

How much notice must be given?

At least 30 days.

How is notice given?

The termination letter can be sent by email, and the signature of both parties can be digital/electronic.

Severance for Termination for Redundancy or Business Reasons

Is severance required?

Severance is 15 days average pay for each completed year of continuous service.

Average pay is based on the average of the 3 months prior to termination.

What is the term of payment?

Severance and final pay must be paid on or before the date of termination of the employment agreement for the termination to be considered valid.

Resignation

The employee can resign at any time by providing notice in accordance with their employment agreement.

Legal Notice Period for Resignation

How much notice must be given?

30 days.

How is notice given?

The resignation letter must be signed with wet ink and shared with the company at least 4 weeks before the employee’s last day.

Severance for Resignation

Is severance required?

No. The employee is only entitled to their final pay for days worked.

What is the term of payment?

Final pay must be paid 15 days after the termination of the employment agreement.

Mutual Termination

In mutual termination, both the employer and employee mutually agree to terminate the employment agreement. Due to the complexity of the termination process in India, mutual terminations are the preferred method for dismissing an employee for business or performance reasons. Mutual termination will always entail the payment of a severance.

Common Reasons for Mutual Termination

The employee is potentially contentious or litigious
The employee cannot be terminated with or without cause
The employee has negotiated their mutual termination with the client
The process for unilateral terminations is complex, time-consuming, or not feasible

Legal Notice Period for Mutual Termination

How much notice must be given?

30 days. Payment in lieu of notice is permitted.

How is notice given?

The termination letter can be sent by email, and the signature of both parties can be digital/electronic.

Severance for Mutual Termination

Is severance required?

Yes. Based on mutual agreement between the employer and employee. Employers typically offer 1-3 months on top of pay-in-lieu of notice.

What is the term of payment?

15 days after the termination of the employment agreement.

Termination During the Probation Period

Both the employer and the employee can terminate the relationship unilaterally during the probation period. The reasons for termination must be communicated in a termination letter and in person.

Grounds for Termination During the Probation Period

Poor performance
Bad behavior
Persistent lateness/absence from work

Legal Notice Period for Termination During Probation

How much notice must be given?

The probation period varies by industry, company, and position but usually ranges from 6 months to a year. No notice is required to terminate an employee during the first 6 months of employment. After 6 months, at least 30 days notice is required.

How is notice given?

The termination letter can be sent by email, and the signature of both parties can be digital/electronic. In situations where the employee is refusing to sign, the termination will still be valid.

Severance for Termination During the Probation Period

Is severance required?

No. The employee is only entitled to their final pay for days worked.

What is the term of payment?

15 days after the termination of the employment agreement.

Terminations in Indonesia are very complex. There are generally five different compliant methods to terminate an employment agreement in the country:

Termination with Cause
Termination for Redundancy or Other Business Reasons
Resignation
Mutual Termination
Termination During the Probation Period

Termination with Cause

The law expressly establishes the causes to terminate an employee. Any termination should be expressly justified to be compliant with the law. It is not possible to terminate an employee without a statutory cause. Deel requires 30 days notice to terminate an employee for cause in Indonesia, except in cases of properly documented gross misconduct.

In cases of gross misconduct, employees may be terminated immediately provided the conduct is in breach of specific provisions of the employment agreement or company policies.

Terminations for poor performance and chronic absenteeism are permitted provided the disciplinary process is followed.

Employees must be provided a written warning that their breach of employment agreement, company policies, poor performance, or chronic absenteeism will result in termination if not corrected.

A process of escalating warning letters is required prior to termination, with 3 letters being the norm unless otherwise provided for in the employment agreement.

Warning letters must detail the misconduct and specify the provisions of the employment agreement or company policy that have been breached. In most cases warning letters expire after six months. Further breaches after six months require initiating a new process of escalating warning letters prior to termination.

Terminations with cause require notification of the relevant Ministry of Manpower office.

Grounds for Termination with Cause

Repeated minor mistakes including poor performance, breach of company regulations or the employment agreement
Absescences of 5 or more days without explanation, or illness or injury of 12 months or longer.
Gross misconduct including assault, threats, intimation, theft, intoxication or gambling on the job

Legal Notice Period for Termination with Cause

How much notice must be given?

The notice period will depend on the reason for termination:

Repeated Minor Mistakes: 14 working days
Absence from Work: 14 working days
Gross Misconduct: No notice period

How is notice given?

Notice can be personally served to the employee. If the employee refuses to receive the notice, the notice is simultaneously served to the employee via (i) email to the employee’s email address, (ii) registered mail, and (iii) private courier to the employee’s last known address.

Severance for Termination with Cause

Is severance required?

Yes, if the employee has violated the employment agreement or company regulations and has been served a first, second, and third consecutive warning.

Severance is composed of the basic severance payment, a length-of-service award, and compensation for any untaken but not forfeited annual leave. Employees may also be entitled to additional compensation as provided in their employment agreement or company regulations.

For the purposes of calculating severance, an employee’s pay includes both basic wage and any fixed allowances paid to the employee and their family.

Employees who have violated their employment agreement or company regulation and have been served a first, second, and third consecutive warning may only be entitled to 50% of the basic severance.

In some cases where employees are terminated for criminality or unexcused absences, not severance is due.

Basic severance is based on years of service:

Less than 1 year: 1 month
1 year: 2 months
2 years: 3 months
3 years: 4 months
4 years: 5 months
5 years: 6 months
6 years: 7 months
7 years: 8 months
8 years: 9 months

Length-of-service award is calculated based on years of service:

3 years: 2 months pay
6 years: 3 months pay
9 years: 4 months pay
12 years: 5 months pay
15 years: 6 months pay
18 years: 7 months pay
21 years: 8 months pay
24 years or more: 10 months pay

What is the term of payment?

The date of termination of the employment agreement.

Termination for Redundancy or Business Reasons

Termination for redundancy or other business reasons must adhere to a specific legal process that includes written notice to the employee of all the facts and circumstances that led to the termination, as well as notice to the relevant Ministry of Manpower office.

Terminations that result for business reasons other than the partial or complete closure of the business, employers must prove that they have taken measures to avoid redundancies, such as reducing overtime work or cutting the pay of managers and directors. Redundancies are always to be treated as a last resort.

Grounds for Termination for Redundancy or Business Reasons

Efficiency measures due to losses or to prevent further losses
Business closure due to losses for two years or other reasons
Business closure arising from a force majeure event
A force majeure event affecting the business but not necessitating closure
Declared bankruptcy
Processes of suspension of debt payment whether or not arising from losses

Legal Notice Period for Termination for Redundancy or Business Reasons

How much notice must be given?

14 working days.

How is notice given?

Notice can be personally served to the employee. If the employee refuses to receive the notice, the notice should be simultaneously served to the employee via (i) email to the employee’s email address, (ii) registered mail, and (iii) private courier to the employee’s last known address.

Severance for Termination for Redundancy or Business Reasons

Is severance required?

Yes, severance is composed of the basic severance payment, a length-of-service award, and compensation for any untaken but not forfeited annual leave. Employees may also be entitled to additional compensation as provided in their employment agreement or company regulations.

For the purposes of calculating severance, an employee’s pay includes both basic wage and any fixed allowances paid to the employee and their family.

Basic severance may be multiplied by a factor of 0.5x to 2x depending on the facts and circumstances of the redundancy or business reason.

Basic severance is based on years of service:

Less than 1 year: 1 month
1 year: 2 months
2 years: 3 months
3 years: 4 months
4 years: 5 months
5 years: 6 months
6 years: 7 months
7 years: 8 months
8 years: 9 months

Length-of-service award is calculated based on 3-year increments of service:

3 years: 2 months pay
6 years: 3 months pay
9 years: 4 months pay
12 years: 5 months pay
15 years: 6 months pay
18 years: 7 months pay
21 years: 8 months pay
24 years or more: 10 months pay

What is the term of payment?

The date of termination of the employment agreement.

Resignation

The employee can resign at any time by providing notice.

Legal Notice Period for Resignation

How much notice must be given?

30 days.

How is notice given?

The resignation letter must be signed with wet ink.

Severance for Resignation

Is severance required?

There is no severance payment when an employee resigns in Indonesia.

What is the term of payment?

The date of termination of the employment agreement.

Mutual Termination

In mutual termination, both the employer and employee mutually agree to terminate the employee’s employment for any reason. Mutual terminations will always entail a severance.

Common Reasons for Mutual Termination

The employee is potentially contentious or litigious
The employee cannot be terminated with or without cause
The employee has negotiated their mutual termination with the client

Legal Notice Period for Mutual Termination

No notice is needed.

Severance for Mutual Termination

Is severance required?

While no severance is required by law, negotiating a mutual termination agreement will always entail the offer of a severance greater than the amount the employee would otherwise be entitled to by law.

What is the term of payment?

The date of termination of the employment agreement.

Termination During the Probation Period

Both the employer and the employee can terminate the relationship unilaterally during the probation period without expressing a cause. Employers are required to give 7 days notice.

In Indonesia the probation period cannot be extended or repeated.

Fixed-term employees cannot be subject to a probation period.

Grounds for Termination During Probation

Without cause
Poor performance
Bad behavior
Persistent lateness/absence from work

Legal Notice Period for Termination During Probation

How much notice must be given?

7 working days.

How is notice given?

Severance for Termination During Probation

Is severance required?

No severance is owed to employees who are terminated during the probation period in Indonesia.

What is the term of payment?

The date of termination of the employment agreement.

Terminations in Ireland can be complex. There are generally five different compliant methods to terminate an employment agreement in the country:

Termination with Cause
Termination for Redundancy or Other Business Reasons
Resignation
Mutual Termination
Termination During the Probation Period

Termination with Cause

In Ireland, any termination should be expressly justified to be compliant with the law. It is not possible to terminate an employee without a statutory cause. You must inform Deel 30 days prior to terminating any employee with cause, except in cases of properly documented serious misconduct.

Terminations will be deemed unfair unless they are the result of a fair disciplinary process that includes an investigation, a disciplinary hearing, and a right of appeal. Employees should be made aware of the allegations against them in advance and afforded the right to be represented.

Disciplinary outcomes start with oral and written warnings and escalate to suspension, demotion, and eventually termination.

This process is essential in Ireland, and failure to follow it can result in a claim of unfair termination.

Grounds for Termination with Cause

Employee Misconduct
Employee is incapable, incompetence, or unqualified
Legal prohibition against employing the individual
Other substantial grounds that justify termination

Legal Notice Period for Termination with Cause

How much notice must be given?

The notice period will depend on the length of the employee’s continuous service:

13 weeks: 1 week notice
2 years: 2 weeks notice
5 years: 4 weeks notice
10 years: 6 weeks notice
15 or more years: 8 weeks notice

Payment in lieu of notice is permitted. Employees can be dismissed without notice for serious misconduct.

How is notice given?

The termination letter can be sent by email, and the signature of both parties can be digital/electronic.

Severance for Termination with Cause

Is severance required?

Yes. Two weeks of pay for each year of continuous services, plus one additional week of pay.

Each week of pay is capped at €600.

What is the term of payment?

Severance and final pay must be paid on the normal monthly payslip date.

Termination for Redundancy or Business Reasons

Before making an employee redundant, the employer is obligated to offer another job within the organization.

Grounds for Termination for Redundancy or Business Reasons

Business Reasons including company downsizing, restructuring, economic, technical, or organizational reasons
Employee redundancy

Legal Notice Period for Termination for Redundancy or Business Reasons

How much notice must be given?

The notice period will depend on the length of the employee’s continuous service.

13 weeks: 1 week notice
2 years: 2 weeks notice
5 years: 4 weeks notice
10 years: 6 weeks notice
15 or more years: 8 weeks notice

Payment in lieu of notice is permitted.

How is notice given?

The termination letter can be sent by email, and the signature of both parties can be digital/electronic.

Severance for Termination for Redundancy or Business Reasons

Is severance required?

Yes. Two weeks of pay for each year of continuous services, plus one additional week of pay.

Each week of pay is capped at €600.

What is the term of payment?

Severance and final pay must be paid on the normal monthly payslip date.

Resignation

Employees can resign at any time. Employees who have worked for more than 13 weeks are required to give one-week notice.

Legal Notice Period for Resignation

How much notice must be given?

No notice is needed before 13 weeks of employment. After 13 weeks of employment, the employee shall provide one week of notice.

How is notice given?

The resignation letter can be sent by email with digital/electronic signature.

Severance for Resignation

Is severance required?

No severance is owed to employees who resign in Ireland.

What is the term of payment?

Final pay must be paid on the normal monthly payslip date.

Mutual Termination

In mutual termination, both the employer and employee mutually agree to terminate the employee’s employment for any reason. Mutual terminations will always entail a severance.

Common Reasons for Mutual Termination

The employee is potentially contentious or litigious
The employee cannot be terminated with or without cause
The employee has negotiated their mutual termination with the client
To ensure a smooth and safe termination is in place

Legal Notice Period for Mutual Termination

How much notice must be given?

The notice period will depend on the length of service as follows:

At least 13 weeks: 1 week notice
2 years: 2 weeks notice
5 years: 4 weeks notice
10 years: 6 weeks notice
15 years: 8 weeks notice

Payment in lieu of notice is permitted.

How is notice given?

The termination letter can be sent by email, and the signature of both parties can be digital/electronic.

Severance for Mutual Termination

Is severance required?

Severance will be mutually agreed between the parties but cannot be less than 5 weeks salary plus holidays.

What is the term of payment?

Severance and final pay must be paid on the normal monthly payslip date.

Termination During the Probation Period

Grounds for Termination during Probation

Poor performance
Bad behavior
Persistent lateness/absence from work
Any other reason

Legal Notice Period for Termination During Probation

No notice is required.

Severance for Termination During Probation

Is severance required?

No severance is owed to employees who are terminated during the probation period in Ireland.

What is the term of payment?

Final pay must be paid on the normal monthly payslip date.

Terminations in Italy can be complex. It is important to advise Deel as soon as possible of your intention to terminate an employee. There are generally five different compliant methods for terminating an employment agreement:

Termination with Cause
Termination for Subjective Reasons, Redundancy or Business Reasons
Resignation
Mutual Termination
Termination During the Probationary Period

Termination with Cause

Terminations for cause in Italy must follow a prescribed disciplinary procedure:

A letter detailing the allegations against the employee, including all known facts underlying the allegation must be sent to the employee.
The letter must bear a wet ink signature and be delivered by hand or by post.
The employee has five days to submit a written response to the allegations,
The employer then has 15 days to dismiss the employee without further notice.

Grounds for Termination with Cause

Gross misconduct by the employee
Gross negligence by the employee while performing his/her duties
Any other reason listed in the disciplinary code
Any other reason provided by the law as lawful grounds for immediate termination

Legal Notice Period for Termination with Cause

How much notice must be given?

Following the disciplinary procedure, no further notice is required

How is notice for termination with cause delivered?

The termination letter can be sent by email, and the signature of both parties can be digital/electronic.

Severance for Termination with Cause

Is severance required?

Severance (TFR) is always due in any case of termination and is a sum already set aside each month by the Employer.

Upon termination, the employee is also entitled to receive all accrued but unused holidays and paid leaves.

What are the terms of payment of severance or final payment of wages owed to the employee?

45 days after the termination of the employment agreement

Termination for Subjective Reasons, Redundancy, and Other Business Reasons

Subjective reasons include less serious breaches of contractual obligations such as serious underperformance or a failure to comply with job obligations. Terminating an employee for underperformance is extremely difficult as the concept of underperformance does not exist under Italian law. An employee’s only obligation is to perform the job. There is no obligation under law to do it well or drive results for the employer.

Objective reasons include business decisions related to restructuring or reorganization of the company, redundancy, and other economic factors. Employers are required to demonstrate the reasons for the dismissal and that no other suitable positions are available.

Terminating an employee while on sick leave, maternity leave, or in the first year of parenthood is prohibited.

Legal Notice Period for Termination for Subjective Reasons, Redundancy, and Other Business Reasons

How much notice must be given?
Notice is defined by the employment agreement or depends on the employee’s length of service and their level. The Employer may at their sole discretion decide to pay an indemnity in lieu of notice and terminate the employee with immediate effect

How is a notice for Termination delivered?
The termination letter can be sent by email, and the signature of both parties can be digital/electronic

Severance for Termination for Subjective Reasons. Redundancy, and Other Business Reasons

Is severance required?

Severance (TFR) is always due in any case of termination and is a sum already set aside each month by the Employer. Upon termination, the employee is also entitled to receive accrued but untaken holidays and paid leaves.

What is the term for payment of severance or final wages to the employee?

45 days after the termination of the employment agreement.

Resignation

The employee’s signature is required on the resignation letter in order for the resignation to be effective. The employee can resign at any time by providing the required notice. Employers may waive notice at their discretion and permit the employee to resign with immediate effect.

Legal Notice Period for Resignation

How much notice must be given?

The employee must give sufficient notice as defined by the employment agreement or according to the length of their service and level of seniority. The employer may waive this notice.

Are there local requirements or restrictions for resignations?

To be valid, resignations and mutual consent terminations can only be implemented in electronic form provided by Labor Ministry.

Severance for Resignation

Is severance required?

What is the term of final payment?

45 days after the termination of the Employment Agreement

Mutual Termination

This termination requires the employee's agreement and must include a severance above the statutory minimum requirements.

There are no mandatory grounds to make a mutual termination of the employment contract. The parties can agree to terminate employment by giving mutual consent and agreement to the terms of termination.

The most common mutual terminations are for business reasons, including restructuring and downsizing.

Reasons for Mutual Termination

The employee is potentially contentious or litigious
The employee cannot be terminated with or without cause
The employee has negotiated their own mutual termination

Legal Notice Period for Mutual Termination

Generally, the notice period set forth in the employment agreement depends on the length of service and level of the employee.

However, parties may agree to a different notice period. Generally, the employer pays to the employee the equivalent sum of notice and an ex gratia payment as an incentive for the employee to leave

The ex gratia payment is based on the length of service, level of the employee, and indemnity in case of unfair dismissal. Each case must be evaluated based on its own merits by the Deel Legal Team.

Severance for Mutual Termination

Is severance required?

Severance is paid in addition to the notice period and the ex gratia payment.

What is the term of payment for severance or final wages to the employee?

45 days after the termination of the employment agreement.

Termination During the Probation Period

An employer may terminate an employee during the probationary period if the employee is found to be unsuitable for the position. While no reason and no notice are required, employers must be able to demonstrate unsuitability in the event of the employee makes a claim against the employer.

Terminations during the probationary period must meet the following conditions:

The employee must have worked for a reasonable period of time to allow the employer to evaluate their suitability for the role; and
The duties and responsibilities of the role must be clearly stated in the employment agreement.

Legal Notice Period for Termination During Probation

No notice is required for terminations during the probationary period.

Severance for Termination During the Probation Period

Is severance required?

If the employee worked more than 14 days, Severance (TFR) must be paid.

What is the term of payment for severance or final wages to the employee?

45 days after the termination of the employment agreement.

Terminations in Mexico can be complex and there is no at-will termination. Most commonly employees are terminated by executing a mutual termination agreement. There are generally four compliant methods of terminating an employment agreement in Mexico:

Termination with Cause
Resignation
Mutual Termination
Termination During the Probation Period

There is no termination for redundancy or business reasons in Mexico. Employers must pursue a mutual termination agreement.

Termination with Cause

Mexican law requires that the cause for termination be unquestionably and indisputably proven. The employer must present the employee with a written document (”Acta Administrativa”) describing the conduct or conducts that motivated the dismissal and the date or dates on which they occurred. The employee should acknowledge the misconduct and sign the document, accepting the termination.

If the employee refuses to sign the document the employer must initiate a legal process through the courts. Failure to demonstrate legal grounds for termination is considered an unfair dismissal.

You must notify Deel at least 30 days prior to terminating any employee with cause, except in cases of properly documented gross misconduct.

Grounds for Termination with Cause

Provide fake/false documents
Unlawful or dishonest acts against the employer, managers and their families, coworkers, clients, and providers
Damages
Harassment, immoral, and inappropriate behaviors/acts
Disclosure of intellectual property or confidential information
More than 3 unjustified absences in 30 days
Defiance
Non-compliance with internal rules and codes
Drugs and alcohol use
Jail

Legal Notice Period for Termination with Cause

No notice period is required.

Severance for Termination with Cause

Is severance required?

No.

What is the term of final payment?

Final payment must be made on the termination date or on the date agreed to in writing with the employee.

Resignation

Employees can resign at any time by providing a signed resignation letter to the employer.

Legal Notice Period for Resignation

No notice period is required.

Severance for Resignation

Is severance required?

No. The employee is only entitled to their final pay for days worked.

What is the term of final payment?

Final payment must be made on the termination date or any other date agreed to in writing with the employee.

Mutual Termination

Termination by mutual agreement is the most common way to terminate an employee in Mexico. In mutual termination, both the employer and employee mutually agree to terminate the employee’s employment for any reason. Mutual terminations will always entail a severance.

Reasons for Mutual Termination

The employee is potentially contentious or litigious
The employee cannot be terminated with cause
The employee has negotiated their mutual termination

Legal Notice Period for Mutual Termination

No notice is required.

Severance for Mutual Termination

Is severance required?

Yes. Mutual termination will always entail a severance payment.

What is the term of payment?

Final payment must be made on the termination date or any other date agreed in writing with the employee.

Termination During the Probation Period

In Mexico, an internal committee evaluates makes the decision about whether an employee passes probation. The committee evaluates the knowledge and ability of the employee to perform the functions of their job. Terminating an employee during the probation period requires a mutual termination agreement, but no severance is owed.

Legal Notice Period for Termination During Probation

No notice is required.

Severance for Termination During the Probation Period

Is severance required?

No. The employee is only entitled to their pay for days worked.

What is the term of payment?

Final pay must be paid on the termination date or any other date agreed in writing with the employee.

Terminations in the Netherlands are complex. As a general rule you cannot unilaterally terminate an employee in the Netherlands without the permission of the Courts or the Dutch Unemployment Agency (UWV). In most cases it is preferable to seek mutual consent to a termination.

If you wish to terminate an employee in the Netherlands it is critical that you contact Deel prior to taking any action.

There are generally five types of termination in the Netherlands:

Terminations Based on Employee Performance or Behavior
Terminations Based on Business Reasons
Resignation
Mutually Agreed Termination or Settlement
Termination During the Probationary Period

Termination Based on Employee Performance or Behavior

The law expressly establishes the legal grounds to terminate an employee for performance or behavioral reasons. In the absence of a negotiated or mutually agreed termination, the permission of the Dutch court is required. All terminations should be extensively documented, including performance improvement plans, accommodations and other measures taken to mitigate the need for termination.

In rare cases of fraud, theft, or violence in the workplace it may be possible to terminate an employee with immediate effect. In order to minimize legal risks and liability it is critical that you contact Deel without delay.

Grounds for Seeking Termination Through the Dutch Courts

Performance issues after having followed an extensive performance improvement plan
Excessive absence due to illness or disability that result in unacceptable consequences for business operations
Refusal to perform work (after multiple warnings)
Misconduct (any serious form of material violation of provisions in the employment agreement, policy, or applicable law)
Disturbed relationship (substantiated with documentation, with a very high threshold)

Legal Notice Period for Termination Based on Performance or Behavior

It is not possible to unilaterally terminate an employee by providing notice.

Severance for Termination Based on Performance or Behavior

Except in rare cases requiring immediate dismissal (fraud, theft, violence) a statutory severance payment will apply. Additional payment to secure a negotiated settlement absent a court decision will also be required.

Termination Based on Business Reasons

The law expressly establishes the circumstances under which you may terminate an employee for business reasons. In the absence of a negotiated or mutually agreed termination, the permission of the Dutch Unemployment Agency (UWV) is required.

Grounds for Seeking Termination Through the Dutch Unemployment Agency

Business (economical) reasons (e.g. company downsizing, restructuring, organizational/technological reasons, business closure).
Business reasons must be substantiated in detail and supported with documents. In case of economical reasons: year reports and financials must be handed over.

Legal Notice Period for Termination for Business Reasons

It is not possible to unilaterally terminate an employee by providing notice.

Severance for Termination for Business Reasons

Employees in the Netherlands are entitled to a statutory transition payment from the start of their employment. Additional payment to secure a negotiated settlement absent a decision from the Dutch Unemployment Agency will also be required.

Resignation

An employee may resign at any time by providing 1 month written notice to the employer (unless a longer notification period has been agreed to by contract). The notice period commences at the end of the month in which notice is given.

An employee may resign during the probation period with immediate effect.

Legal Notice Period for Resignation

Employee must provide 1 month notice or as agreed to by contract.

Severance for Resignation

None.

Mutually Agreed Termination or Settlement

Employers may avoid the formal process of seeking permission from the Courts or the Dutch Unemployment Agency by obtaining the written consent of an employee to a mutually agreed termination. This is the preferred course of action for any employer wishing to terminate an employee. Please be advised that obtaining the consent of the employee will always the payment of severance above statutory minimums.

Legal Notice Period for Mutually Agreed Termination

By agreement with the employee

Severance for Mutually Agreed Termination

By agreement with the employee, but always above statutory minimums.

Termination During the Probation Period

The employer may unilaterally terminate an employee during the probationary period without seeking the permission of the courts of the Dutch Unemployment Office. No legal grounds are required, and the termination takes immediate effect. It is not permissible to terminate an employment for prohibited discriminatory reasons, even during the probationary period.

Legal Notice Period for Termination During Probation

No notice is required.

Severance for Termination During the Probation Period

The payment of statutory severance is required, even for terminations during the probation period. The amount of severance is approximately 1/3 monthly salary per year of service.

Terminations in New Zealand can be complex. There are generally five different compliant methods to terminate an employment agreement in the country:

Termination with Cause
Termination for Redundancy or Other Business Reasons
Resignation
Mutual Termination
Termination During the Probation Period

Termination with Cause

New Zealand expressly establishes the causes to terminate an employee, which are based on the wrongful acts or omissions of the employee. Any termination should be expressly justified to be compliant with the law. It is not possible to terminate an employee without a statutory cause. You must inform Deel 30 days prior to terminating any employee with cause, except in cases of properly documented serious misconduct.

Grounds for Termination with Cause

Serious Misconduct: an act or omission that deeply impairs or destroys the trust and confidence an employer has placed in the employee. This is more likely if the misconduct has adversely impacted the employee’s ability to perform the job. Employers are required to conduct a fair investigation and initiate a disciplinary process. Employees must be made aware of the allegations against them, including the specific provisions of the employment agreement or company policies that have been breached, and provided an opportunity to respond.

Examples of serious misconduct are violent behavior, bullying, harassment, theft, fraud, behavior that endangers the health and safety of the employee or others, use of illegal drugs at work, and dishonesty.
Repeated Misconduct: a series of repeated offenses that do not amount to serious misconduct but are contrary to professional behavior. There is no definite number of times that the employee needs to repeat an offense for it to be considered repeated misconduct, and it may depend on the severity of the offenses. However, the employee must be given sufficient opportunity to improve their behavior.
Poor Performance: when an employee’s performance has not improved despite repeated attempts at performance management plans, and the employee has been warned that termination was a potential outcome for continued poor performance.

Legal Notice Period for Termination with Cause

How much notice must be given?

There is no legal notice period however disciplinary processes or performance management plans must be implemented.

How is notice given?

A termination letter, signed with wet ink and delivered by post mail. Or the letter may be sent by email and the signature of both parties can be digital/electronic.

Severance for Termination with Cause

Is severance required?

No. The employee is only entitled to their final pay for days worked.

What is the term of payment?

Final pay must be paid on or before the pay day of their final period of employment.

Termination for Redundancy or Other Business Reasons

If there is no clause in the employment agreement providing a period of notice of redundancy, then reasonable notice must be given.

Grounds for Termination for Redundancy or Other Business Reasons

Business Reasons, including company downsizing and restructuring
When an employer reduces its workforce because a position or positions (not the employee) are no longer needed

Legal Notice Period for Termination for Redundancy or Other Business Reasons

How much notice must be given?

As specified in the employment agreement or reasonable notice.

How is notice given?

Written notice signed with wet ink and delivered by post mail. Or the notice letter may be sent by email and the signature of both parties can be digital/electronic.

Severance for Termination for Redundancy or Other Business Reasons

Is severance required?

No. The employee is only entitled to their final pay for days worked.

What is the term of payment?

Final pay must be paid on or before the pay day of their final period of employment.

Resignation

The employee can resign at any time by providing notice in accordance with their employment agreement.

Legal Notice Period for Resignation

How much notice must be given?

Notice is determined by the employment agreement.

How is notice given?

The resignation letter must be signed with wet ink and shared with the company in accordance with the notice period stated in the employment agreement.

Severance for Resignation

Is severance required?

No. The employee is only entitled to their final pay for days worked.

What is the term of payment?

Final pay must be paid on or before the pay day of their final period of employment.

Mutual Termination

In mutual termination, both the employer and employee mutually agree to terminate the employee’s employment for any reason. Mutual terminations will always entail a severance.

Common Reasons for Mutual Termination

The employee is potentially contentious or litigious
The employee cannot be terminated with cause or for redundancy or other business reasons
The employee has negotiated their mutual termination with the client

Legal Notice Period for Mutual Termination

There is no notice period for mutual termination and the terms of the termination will be subject to the mutual agreement of the employee and employer.

Severance for Mutual Termination

Is severance required?

Yes. Mutual termination will always entail a severance.

What is the term of payment?

Severance and final pay must be paid on the payday of the employee’s final pay period.

Termination During the Probation Period

In New Zealand, only employers with 19 or fewer employees at the start of the day on which the employment agreement is executed may employ a new employee for a trial period of up to 90 days.

Grounds for Termination During the Probation Period

Poor performance
Bad behavior
Persistent lateness/absence from work

Legal Notice Period for Termination During Probation

How much notice must be given?

As determined by the employment agreement.

How is notice given?

Written notice signed with wet ink and delivered by post mail. Or the notice letter may be sent by email and the signature of both parties can be digital/electronic.

Severance for Termination During the Probation Period

Is severance required?

No.

What is the term of payment?

Final pay must be paid on the payday of the employee’s final pay period.

Terminations in the Philippines are complex. There are generally five different compliant methods to terminate an employment agreement in the country:

Termination with Cause
Termination for Redundancy or Other Business Reasons
Resignation
Mutual Termination
Termination During the Probation Period

Termination with Cause

The law expressly establishes the causes to terminate an employee. Any termination should be expressly justified to be compliant with the law. It is not possible to terminate an employee without a statutory cause. Clients must inform Deel 30 days prior to terminating an employee with cause.

In the Philippines, terminations with cause are known as “just causes” and are based on the wrongful acts or omissions of the employee.

Before terminating an employee with cause, employers are first required to follow a multi-step disciplinary process. This process includes delivering a First Written Notice/Show Cause Notice to the employee that details the facts and circumstances of the alleged misconduct, the specific company policies or labor code provisions that have been breached, and makes the employee aware that an investigation will be conducted that may lead to their termination.

Employees are entitled to request a hearing and, with the support of a representative, respond to the allegations against them, rebut the evidence submitted to support the allegations, and submit evidence in their own defense.

Following an investigation, a Second Written Notice/Termination Notice must be delivered.

Employers that fail to adhere to the disciplinary process are liable to pay damages to the employee.

Grounds for Termination with Cause

Serious misconduct that is willful in character and not a mere error in judgment.
Insubordination or willful disobedience
Gross and habitual neglect of duties
Fraud
Breach of trust or loss of confidence
Commission of a crime or offense against the person of the employer, the person of the employer’s immediate family family or the person of any duly authorized representative of the employer.
Analogous causes meaning those that have been expressly specific as analogous under the company’s rules, regulations, or policies.

Legal Notice Period for Termination with Cause

How much notice must be given?

A disciplinary procedure that includes (1) First Written Notice/Show Cause Notice, (2) an investigation, and (3) Second Written Notice/Termination Notice must be followed.

How is notice given?

Show Cause Notice and Termination Notice must be personally served to the employee. If an employee refuses services, notices may be simultaneously served to the employee via email, registered mail, and a private courier to the employee’s last known address.

Severance for Termination with Cause

Is severance required?

There are no statutory requirements for severance for employees terminated with cause. Employees are entitled to receive their standard salary through the disciplinary process, except in cases of imminent threat to the employer or co-worker’s life or property, In such cases, employers may place an employee on unpaid preventative suspension for a period not exceeding 30 days.

What is the term of payment?

Within 30 days from the termination of the employment agreement.

Termination for Redundancy or Other Business Reasons

In the Philippines, terminations for redundancy or other business reasons are known as “authorized causes”. These terminations are based on legitimate business reasons without regard to whether or not an employee is at fault.

For terminations for redundancy or other business reasons to be valid the termination must be in good faith and not for the purposes of circumventing an employee’s right to security of tenure. Grounds for termination must be substantiated and there must be fair and reasonable criteria for selecting which employees will be terminated.

Terminations for authorized causes must be filed with the Department of Labor and Employment (DOLE).

Employers that fail to adhere to the required termination process are liable to pay damages to the employee.

Grounds for Termination for Redundancy or Other Business Reasons

Installation of labor-saving machinery or devices
Redundancy
Retrenchment to prevent real or imminent substantial losses
Closure or cessation of operations
Incurable employee illness or disease

In the case of illness or disease, the continued employment of the employee must be prohibited by law, or prejudicial to the employee’s health as well as the health of the employee’s co-workers. There must be a certification by a competent health authority that the disease is incurable within a period of 6 months even with proper medical treatment.

Legal Notice Period for Termination for Redundancy or Other Business Reasons

How much notice must be given?

30 days written notice to the employee
30 days written notice to the Department of Labor and Employment.

For terminations due to disease there is no notice period. However, the employer must comply with the disciplinary process for terminations with cause.

How is notice given?

The notice must be personally served to the employee. If an employee refuses services, notices may be simultaneously served to the employee via email, registered mail, and a private courier to the employee’s last known address.
The notice to the Regional Office of the DOLE must be personally filed.

Severance for Termination for Redundancy or Other Business Reasons

Is severance required?

Yes. Severance for terminations for redundancy and other business reasons is based on the authorized cause.

Installation of labor-saving machinery or devices, or redundancy:

At least one month pay or at least one month pay for every year of service of the employee, whichever is higher.
A fraction of six months service is considered as one whole year.

Retrenchment to prevents losses, closure, or disease:

At least one month pay or at least one-half month pay for every year of service of the employee, whichever is higher.
A fraction of six months service or more is considered as one whole year.

Closure or cessation of operations:

No severance

Employees are also entitled to receive their salary during the notice period.

Employers that fail to adhere to the required termination process are liable to pay damages to the employee, in addition to any owed severance payment.

What is the term of payment?

Within 30 days from the termination of the employment agreement.

Resignation

Employees may resign at any time by providing at least 30 days written notice. Employers may reduce or waive the required notice period. In addition to a signed, written notice of resignation, a deed of release, waiver, and quitclaim must be signed by the employee and notarized.

Legal Notice Period for Resignation

How much notice must be given, if any?

30 days notice

How is notice given?

Signed, written notice of resignation
Signed and notarized deed of release, waiver, and quitclaim

Severance for Resignation

Is severance required?

There are no statutory requirements for severance when an employee resigns. Prior to the effective date of the resignation the employee is entitled to their standard salary.

What is the term of payment?

Within 30 days from the termination of the employment agreement.

Mutual Termination

In mutual termination, both the employer and employee mutually agree to terminate the employee’s employment for any reason. A mutual termination will always entail a severance.

A mutual separation agreement must be executed between the employer and the employee and the employee must submit a deed of release, waiver, and quitclaim signed by the employee and which should, among other things, discharge the employer from all claims, obligations, and causes of action arising from the employee’s employment.

Common Reasons for Mutual Termination

The employee is potentially contentious or litigious.
The employee cannot be terminated with cause or for redundancy or other business reasons.
The employee has negotiated their mutual termination with the client.

Legal Notice Period for Mutual Termination

There is no notice period.

Severance for Mutual Termination

Is severance required?

Yes. In order for a separation agreement or other voluntary agreement to be valid, there must be sufficient and reasonable consideration for such agreement.

Employees are also entitled to their salary prior to the effective date of the termination.

What is the term of payment?

Within 30 days of the termination of the employment agreement.

Termination During the Probation Period

Employers may terminate employees during the probation period if they fail to qualify as a regular employee in accordance with reasonable standards that were made known to the employee at the time of engagement.

Probation periods in the Philippines cannot exceed six months, and any employee who continues to work after the probation period is deemed a regular employee and can no longer be terminated via probation termination.

In order to terminate an employee during the probation period, it must be demonstrated that the employee was informed of their probation status, the length of the probation period, and the standards that would need to be met in order to be regularized as an employee. Employers are further required to demonstrate that such standards were applied to the employee’s performance.

The process for terminating an employee during the probation period must be initiated well in advance of the end of the probation period.

Grounds for Termination During the Probation Period

Poor performance
Bad behavior
Persistent lateness/absence from work

Legal Notice Period for Termination During Probation

In the Philippines, the law requires that notice served within a “reasonable time” from the effective date of termination. In practice, such written notice is usually serviced fifteen days prior to the effective date.

Severance for Termination During the Probation Period

Is severance required?

No. Prior to the effective date employee’s are entitled to their standard salary.

What is the term of payment?

Within 30 days of the termination of the employment agreement.

Terminations in Portugal can be complex. It is important to advise Deel as soon as possible of your intention to terminate an employee. There are generally five different compliant methods for terminating an employment agreement:

Termination with Cause
Termination for Redundancy
Resignation
Mutual Termination
Termination During the Probation Period

Termination with Cause

The client must inform Deel 30 days prior to a Termination with Cause, or as required by local employment law. Exceptions include properly documented gross misconduct.

Clients should inform Deel prior to informing the employee of their termination.

Grounds for Termination with Cause

Illegitimate disobedience to orders given by a hierarchical superior
Violation of the rights and guarantees of the company's workers
Repeated provocation of conflicts with workers of the company
Repeated lack of interest in the fulfillment, with due diligence, of obligations inherent to the exercise of the position or job to which the employee is assigned
Injury to the company's serious property interests
False statements regarding the justification of absences
Unexcused absences from work that directly cause damage or serious risks to the company, or whose number reaches, in each calendar year, 5 in a row or 10 interpolated, regardless of damage or risk
Culpable failure to observe safety and health rules at work
Practice, within the company, of physical violence, injuries, or other offences punishable by law against a company employee, member of the company, their delegates, or representatives
Kidnapping or, in general, a crime against the freedom of the persons referred to above
Non-compliance or opposition to compliance with a judicial or administrative decision
Abnormal reductions in productivity

Legal Notice Period for Termination with Cause

How much notice must be given?

No notice is needed

How is notice for termination with cause delivered?

A decision to terminate for cause must be delivered to the employee in writing

Severance for Termination with Cause

There is no severance payment. But the employer still has to pay the standard wages:

Proportional salary
Overdue Vacation and related allowance, if applicable
Proportional vacation
Proportion vacation allowance
Proportional Christmas allowance
Proportional Hours of professional qualification/training; (maximum of 40hours or proportional to the number of months).

Termination for Redundancy

Termination without cause falls into this category. The law expressly establishes the business reasons to terminate an employee. Any termination for redundancy or business reasons must be expressly justified in accordance with these statutory grounds or reasons in order to be compliant with the law.

Grounds for Termination for Redundancy

Due to the extinction of the job position
Due to the employee's unsuitability for the work

Legal Notice Period for Termination for Redundancy

The required notice period is based on the length of an employee's work with the company:

15 days, if the length of work is less than 1 year
30 days, if the length of work is equal to or more than 1 year and less than 5 years
60 days, if the length of work is equal to or more than 5 years and less than 10 years
75 days, if the length of work is equal to or more than 10 years

During the legal notice, the employee is entitled to a credit of hours, that is, 2 days off work per week, without prejudice to the salary. The credit of hours can be divided by some or all days of the week, at the initiative of the employee.

If the employer does not give the employee the legal notice, the employer must pay the respective notice period.

Severance for Termination for Redundancy

The employee is entitled to:

Compensation of 12 or 18 days for each year of work, in the case of an indefinite contract or fixed-term contract, respectively
Proportional Salary
Overdue Vacation and related allowance, if applicable
Proportional Vacation
Proportional Vacation allowance
Proportional Christmas allowance
Proportional Hours of professional qualification/training; (maximum of 40hours or proportional to the number of months)

Resignation

Employees may resign at any time by providing written notice.

Legal Notice Period for Resignation

The amount of notice is based on the length of of employment:

30 days notice for employment of up to two years
60 days notice for employment of more than two years

Severance for Resignation

There is no severance payment required. The employee is entitled to receive standard wages as follows:

Proportional Salary
Overdue Vacation and related allowance, if applicable
Proportional Vacation
Proportional Vacation allowance
Proportional Christmas allowance
Proportional Hours of professional qualification/training; (maximum of 40hours or proportional to the number of months)
Discount of indemnification of legal notice, if not worked by the employee

Mutual Termination

This termination requires the employee's agreement and must include a severance above the statutory minimum requirements.

The most common mutual terminations are for business reasons, including restructuring and downsizing.

Common Reasons for Mutual Termination

The employee is potentially contentious or litigious
The employee cannot be terminated with or without cause
The employee has negotiated their own mutual termination

Legal Notice Period for Mutual Termination

No notice is required except as agreed to by the parties

Severance for Mutual Termination

Severance is determined by the type of employment contract:

12 days pay for each year of work for indefinite contracts
18 days pay for each year of work for fixed-term contracts

Employees are also entitled to:

Proportional Salary
Overdue Vacation and related allowance, if applicable
Proportional Vacation
Proportional Vacation allowance
Proportional Christmas allowance
Proportional Hours of professional qualification/training; (maximum of 40hours or proportional to the number of months)

Termination During the Probation Period

The employer or the employee may terminate the relationship unilaterally during the probation period without cause.

Grounds for Termination During the Probation Period

Poor performance
Bad behaviour
Persistent lateness or absences

Legal Notice Period for Termination During Probation

The employer must provide notice based on the length of employment with the Company:

no notice for employment of less than 60 days (unless otherwise agreed to in contract)
7 days notice for employment of 60 to 120 days
15 days notice for employment of more than 120 days

If the employer does not give the employee the legal notice, the employer must pay the respective notice period.

Severance for Termination During the Probation Period

There is no severance payment. Employees are entitled to the following in proportion to their length of employment:

Proportional Salary
Vacation
Vacation allowance
Christmas allowance
Hours of professional qualification/training (maximum of 40hours or proportional to the number of months)

Terminations in Singapore are generally not complex. Terminations without cause are permitted strictly in accordance with the terms of the employment agreement. Where the employee is notified of cause or grounds for termination, the burden of proof rests with the employer.

There are six different compliant methods to terminate an employment agreement in the country:

Termination with Cause
Terminations for Redundancy and Other Business Reasons
Terminations without Cause
Resignation
Mutual Termination
Termination During the Probation Period

Termination with Cause

The law expressly establishes the causes to terminate an employee. Any termination should be expressly justified to be compliant with the law. You must inform Deel 30 days prior to terminating an employee with cause, except in cases of properly documented serious misconduct.

Employers are obligated to conduct a fair inquiry into allegations of misconduct, and the burden of demonstrating cause rests with the employer. Termination letters are mandatory. It is crucial that each step of the process as well as any communication with the employee be well documented.

Grounds for Termination with Cause

Serious performance issues
Attendance issues
Theft, including money or property
Misconduct, meaning any form of material violation of provisions in the employment agreement, policy, or applicable law
Falsifying Records
Harassment
Violence

Legal Notice Period for Termination with Cause

How much notice must be given?

No notice is needed.

How is notice given?

The termination letter can be signed in wet ink or sent by email, and the signature of both parties can be digital/electronic.

Severance for Termination with Cause

Is severance required?

No.

What is the term of payment?

The last day of employment or no later than three working days from the date of dismissal.

Termination for Redundancy or Business Reasons

Employers going through a retrenchment exercise should submit a notice of retrenchment to the Ministry of Manpower office. For employers with 10 or more employees this notice is mandatory.

Employees with more than 2 years service are eligible for retrenchment benefits. Those with less than 2 years service are frequently granted ex-gratia payments out of goodwill.

Grounds for Termination for Redundancy or Business Reasons

Business reasons, such as company downsizing, restructuring, etc.
Cost-cutting
Redundancy of position

Legal Notice Period for Termination for Redundancy or Business Reasons

How much notice must be given?

As specified in the employment agreement, but it is encouraged to give a longer notice period for redundancy reasons.

How is notice given?

The termination letter can be sign

Severance for Termination for Redundancy or Business Reasons

Is severance required?

No severance is owed to employees who are terminated for Redundancy or other business reasons. The prevailing norm is to pay a retrenchment benefit of two-weeks to one-month salary per year of service.

What is the term of payment?

Severance and final pay must be paid on the last day of employment or at the latest three working days from the date of termination.

Termination without Cause

Employers may terminate an employee without cause in accordance with the termination clause of the employment agreement. A written termination letter is mandatory.

Communicating the grounds or reasons for termination to the employee will place additional obligations on the employer and prevent termination without cause. It is crucial to inform Deel prior to communicating with the employee regarding any possible termination without cause.

Cases of redundancy may be subject to regulatory requirements or investigations and must comply with the notification and severance requirements of termination for redundancy.

Legal Notice Period for Termination without Cause

How much notice must be given?

As specified in the employment agreement

How is notice given?

The termination letter can be signed in wet ink or sent by email, and the signature of both parties can be digital/electronic.

Severance for Termination without Cause

Is severance required?

No severance is owed to employees who are terminated without cause in Singapore. In most cases it may be advisable to offer severance.

What is the term of payment?

Severance and final pay must be paid on the last day of employment or at the latest three working days from the date of termination.

Resignation

The employee can resign at any time by providing written notice in advance in accordance with the employment agreement.

Legal Notice Period for Resignation

How much notice must be given?

As specified in the employment agreement.

How is notice given?

The employee has to send a resignation letter either signed in wet ink or by email with digital/electronic signature.

Severance for Resignation

Is severance required?

No severance is owed to employees who are terminated by resignation in Singapore.

What is the term of payment?

Final pay must be paid on the last day of employment.

Mutual Termination

In mutual termination, both the employer and employee mutually agree to terminate the employee’s employment for any reason. Mutual terminations will always entail a severance.

Terms and the payment of any consideration will be negotiated and agreed to between the parties of the mutual termination agreement.

Common Reasons for Mutual Termination

The employee is potentially contentious or litigious
The employee cannot be terminated with or without cause
The employee has negotiated their mutual termination with the client

Legal Notice Period for Mutual Termination

As agreed in the mutual termination agreement.

Severance for Mutual Termination

Is severance required?

No severance is owed to employees who are terminated by mutual termination in Singapore but this is highly advised.

What is the term of payment?

Severance and final pay must be paid on the last day of employment or at the latest three working days from the date of termination.

Termination During the Probation Period

Both the employer and the employee may unilaterally terminate the employment agreement during the probation period without expressing a cause. The notice period for termination during probation will be in the employment agreement. A termination letter is mandatory.

Employers seeking to terminate an employee immediately without notice during the probation period must comply with the requirements for termination with cause.

Legal Notice Period for Termination During Probation

How much notice must be given?

As specified in the employment agreement.

How is notice given?

The termination letter can be signed in wet ink or sent by email, and the signature of both parties can be digital/electronic.

Severance for Termination During Probation

Is severance required?

No severance is owed to employees who are terminated during the probation period in Singapore.

What is the term of payment?

Final pay must be paid on the last day of employment or at the latest three working days from the date of termination.

Terminations in Spain can be complex. It is important to advise Deel as soon as possible of your intention to terminate an employee. There are generally five different compliant methods for terminating an employment agreement:

Termination with Cause
Termination for Redundancy
Resignation
Mutual Termination
Termination During the Probation Period

Termination with Cause

The client must inform Deel 30 days prior to a Termination with Cause, or as required by local employment law. Exceptions include properly documented gross misconduct.

Clients should inform Deel prior to informing the employee of their termination.

Grounds for Termination with Cause

Repeated and unjustified lack of attendance of punctuality to work
Indiscipline or disobedience at work
Verbal or physical offences against the employer, coworkers, or any family member living with them
Transgression of good faith as well as the abuse of trust in the performance of work
Habitual drunkenness or drug addiction if they have a negative impact on work
Harassment based on racial or ethnic origin, religion or beliefs, disability, age, or sexual orientation, and sexual harassment or harassment based on sex against the employer or any other employee.

Legal Notice Period for Termination with Cause

How much notice must be given?

No notice is needed

How is notice for termination with cause delivered?

The termination letter can be sent by email, and the signature of both parties can be digital/electronic.

Severance for Termination with Cause

Is severance required?

In Spain no severance is owed to employees who are terminated with cause as it is a disciplinary dismissal.

What are the terms of payment of severance or wages owed to the employee?

On the employee's last working day.

Termination for Redundancy or Business Reasons

Grounds for Termination for Redundancy or Business Reasons

Business reasons, including company downsizing and restructuring
Performance issues
Technical reasons
Organizational reasons
Production reasons
Economic reasons
Employee's inability to adapt to a technical change.

Legal Notice Period for Termination for Redundancy or Business Reasons

How much notice must be given?

15 days

How is notice for Termination for Redundancy delivered?

The termination letter can be sent by email, and the signature of both parties can be digital/electronic.

Severance for Termination for Redundancy or Business Reasons

Is severance required?

Severance of no less than 20 days of salary for each year of completed service

What are the terms of payment?

On the last working day of the Employee

Resignation

The employee's signature is required on a resignation letter in order for resignation to be effective. The employe can resign at any time by providing 15 days notice.

Legal Notice Period for Resignation

How much notice must be given?

The employee must provide 15 days notice.

Are there local requirements or restrictions?

A signed resignation letter must be delivered to the company at least 15 days prior to the employee's last day.

Severance for Resignation

Is severance required?

No severance is owed to employees who resign in Spain.

What is the term of final payment?

On the last working day of the employee.

Mutual Termination

This termination requires the employee's agreement and must include a severance above the statutory minimum requirements.

The most common mutual terminations are for business reasons, including restructuring and downsizing.

Common Reasons for Mutual Termination

The employee is potentially contentious or litigious
The employee cannot be terminated with or without cause
The employee has negotiated their own mutual termination

Legal Notice Period for Mutual Termination

No notice is required except as agreed to by the parties

Severance for Mutual Termination

Is severance required?

Severance is always required for mutual terminations. The amount is determined by mutual agreement. While the law does not establish the amount of severance required, we suggest that this amount should be at least 33 days of salary for each year of service.

What is the term of final payment?

On the last working day of the employee.

Termination During the Probation Period

The employer or the employee may terminate the relationship unilaterally during the probation period without cause. The notice period for termination during the probation period will be included in the employment agreement as established by local law.

Grounds for Termination During the Probation Period

No reasons or grounds are required

Legal Notice Period for Termination During Probation

No notice is required.

Severance for Termination During the Probation Period

Is severance required?

No severance is owed to employees who are terminated during the probation period.

What is the term of final payment?

On the last working day of the Employee.

Terminations in Switzerland are not complex. Freedom to terminate is an important principle in Swiss labor law. Termination without cause is possible, subject to certain limits. In all cases, the canton must be notified. There are generally five different compliance methods to terminate an employment agreement in Switzerland:

Termination with Cause
Termination without Cause
Resignation
Mutual Termination
Termination During the Probation Period

Please note that due to the Deel EOR employment relationship in Switzerland, terminations for business reasons and redundancy require a negotiated mutual termination agreement with employees.

Termination with Cause

In Switzerland, terminations with cause include immediate terminations and are permissible only with just cause. A person giving notice of termination in good faith to an employee cannot be required to continue an employment relationship where just cause for immediate termination exists. You must provide Deel with 30 days notice for termination with cause except in cases of properly documented gross misconduct.

While no formal disciplinary process is required by law, immediate terminations are only effective when the letter of termination has been received by the employee. It is therefore essential to ensure that such terminations are properly documented and noticed.

Less serious breaches of duty by the employee can only be grounds for immediate termination subsequent to a warning that such a termination will take place if the breach is repeated. The particular circumstances of the case are always decisive.

Grounds for Termination with Cause

Serious breaches of duty by the employee that justify immediate termination without warning:

Offenses, including sexual harassment, in the workplace
Repeated or general refusal to work
Competing activity
Disclosure of business secrets
Acceptance of bribes

Less serious breaches of duty that justify immediate termination after a warning:

Late arrivals at the workplace
One absence from the workplace without a valid reason
Excessive use of the telephone or internet at the workplace
Failure to comply with the employer's instructions

Legal Notice Period for Termination with Cause

How much notice must be given?

No notice is needed. The employment relationship ends immediately.

How is notice given?

Registered letter sent by post mail.

Severance for Termination with Cause

Is severance required?

No severance is owed to employees who are terminated with cause in Switzerland. The employee is only entitled to payment of wages related to the work already performed.

What is the term of payment?

On the last day of the month in which employment ends

Termination without Cause

Freedom to terminate is an important principle of Swiss labor law and employers are generally permitted to terminate an employee without cause, subject to certain limits.

Terminations may not be unfair or retaliatory. Employees are entitled to request the reasons for their termination in writing. Failure to provide written reasons will result in the termination being deemed unfair. Employees who are unfairly may seek damages.

Unfair and Impermissible Grounds for Termination without Cause

A reason inherent in the personality of the other party, unless this reason is related to the employment relationship or is in some essential respect seriously prejudicial to the work in the company (Art. 336 (1) (a) CO)
The exercise of a constitutional right by the other party, unless the exercise of this right violates an obligation arising from the employment contract or in essential respect causes serious harm to the work in the company (Art. 336 (1) (b) CO)
A desire to prevent legal claims of the other party arising from the employment contract (Art. 336 para. 1 let. c CO)
The other party asserting claims arising from the employment contract in good faith (Art. 336 (1) (d) CO). This reason is also referred to as "retaliatory leave"
The other party performing compulsory military, civil defense service, or civilian service under federal law, or because they are fulfilling a legal obligation without having requested to do so (Art. 336 (1) (e) CO)
The employee's membership or non-membership of a workers' organization or because of the exercise of trade union activity in accordance with the law (Art. 336 (2) (a) CO)
The employee being an elected representative of the workers and a member of a works council or an institution linked to the company and the employer cannot prove that he had a justified reason for termination (Art. 336 (2) (b) CO)
Not complying with the consultation procedure provided for collective dismissals (Art. 336(2)(c) CO)

In addition, according to Art. 10 of the Equality Act, termination of employment by the employer is voidable in court if it is not based on a justified reason and if it follows a complaint to a superior or another competent body within the company, the initiation of conciliation proceedings or the filing of a lawsuit. However, the employee may also waive his or her right to retain his or her job and demand compensation.

Legal Notice Period for Termination without Cause

How much notice must be given?

Notice is tied to years of service, and always effective from the last day of the month in which it is given.

Up to two years: one month notice
Two to nine years: two months notice
More than nine years: three months notice

How is notice given?

Registered letter sent by post mail.

Severance for Termination without Cause

Is severance required?

No severance is owed to employees who are terminated without cause in Switzerland. The employee is only entitled to payment of wages related to the work already performed.

What is the term of payment?

On the last day of the contract, which will always be the last day of the month in which notice ends.

Resignation

The employee can resign at any time by providing notice.

Legal Notice Period for Resignation

How much notice must be given?

Up to one year of service: one month notice

One to nine years of service: two months notice

More than nine years of service: three months notice

How is notice given?

The resignation letter must be signed with wet ink.

Severance for Resignation

Is severance required?

There is no severance payment when an employee resigns in Switzerland.

What is the term of payment?

On the last day of the month in which employment ends

Mutual Termination

An employment relationship can be terminated at any time by mutual agreement, without the need to respect specific deadlines and dates. However, such termination agreements may also be considered invalid if they aim to circumvent mandatory protection provisions. Mutual terminations will always entail a severance.

Common Reasons for Mutual Termination

The employee is potentially contentious or litigious
The employee cannot be terminated with or without cause
The employee has negotiated their mutual termination with the client

Legal Notice Period for Mutual Termination

No notice is needed.

Severance for Mutual Termination

While no severance is required by law, negotiating a mutual termination agreement will always entail the offer of a severance package.

What is the term of payment?

The date of termination of the employment agreement.

Termination During the Probation Period

Legal Notice Period for Termination During Probation

How much notice must be given?

7 calendar days.

How is notice given?

Registered letter sent by post mail.

Severance for Termination During Probation

Is severance required?

No severance is owed to employees who are terminated during the probation period in Switzerland.

What is the term of payment?

On the last day of the contract, which will always be the last day of the month in which notice ends.