Reasons for termination of employment relation

According to the provisions of the Labour Law an employment relation shall be terminated:

• after the expiry of the period it was concluded for
• when an employee reaches the age of 65 and a minimum of 15 social insurance years, unless otherwise agreed between the employer and the employee
• by an agreement between the employee and the employer
• by notice of cancellation of employment contract by the employer or the employee
• at the request of a parent or guardian of an employed minor under 18 years of age
• in the event of death of the employed
• in other cases specified by the law.

Employment relation of an employee shall terminate independently of his intent and the intent of the employer:

• should it be established in the manner specified by law that an employee has suffered loss of working ability – as of the day of being delivered a finally binding ruling on establishing the loss of working ability
• if according to the provisions of the law, and/or a finally binding decision of the court or another agency, he was forbidden to perform particular jobs, while it was not possible to assign him to perform other jobs – as of the day of being delivered the finally binding decision
• if due to serving a prison sentence he has to be absent from work for a period exceeding six months – as of the day of being sent to serving the sentence
• if a security, correctional or protective measure is imposed upon him, exceeding a six month period, compelling him to be absent from work – as of the day of the commencement of administering such measure
• in the event of termination of employer’s work, in conformity with the law.

Termination of Employment Relation by Mutual Consent

An employment relation may terminate on the ground of agreement, in writing, between the employer and the employee.

Before signing the agreement, the employer shall be bound to notify the employee, in writing, on consequences that may ensue in exercising the rights in the event of unemployment.

Cancellation by Employee

An employee shall be entitled to cancel the employment contract with the employer.

The notice of cancellation of employment contract shall be submitted in writing by the employee to the employer, at least fifteen days before the day indicated by the employee as the day of termination of employment relation (notice period). The general act or employment contract may determine a longer notice period, but not longer than 30 days.

Cancellation by Employer

An employer may terminate the employee’s employment contract for just cause which relates to employee’s work ability and his conduct, such as:

• If he does not achieve the work results or does not have the necessary knowledge and skills to perform his duties
• If he is legally convicted of a crime in the workplace or related to workplace
• If he does not return to work for the employer within 15 days of the expiry of the time period of stay of employment under Article 79 of the Labour Law, or unpaid absence under Article 100 of the Labour Law.

The employer may terminate the employment contract of the employee who on his own fault commits a breach of a work duty, as follows:

• If he is negligent or reckless in performing the work duty
• If he abuses his position or exceeds authority
• If he unreasonably and irresponsibly uses means of work
• If he does no use or uses inappropriately allocated resources and personal protective work equipment
• If he commits other breach of work duty as determined by the general act or employment contract.

The employer may terminate the employment contract of an employee who does not respect labor discipline, as follows:

• If he unreasonably refuses to perform work and execute the orders of the employer in accordance with the law
• If he does not submit a certificate of temporary incapacity for work in terms of Article 103 of the Labour Law
• If he abuses the right to leave due to temporary incapacity for work
• If comes to work under the influence of alcohol or other intoxicating substances, or uses alcohol or other intoxicating substances during working hours, which has or may have an impact on the work performance
• If he gave incorrect information that were critical for concluding the employment relation
• If the employee works in jobs with higher risk, for which a specific health condition is a special requirement for work, refuses to undergo a health condition test
• If he does not respect labor discipline prescribed by an act of the employer, or if his conduct is such that he cannot continue to work for the employer.

The employer may instruct the employee to undertake an appropriate analysis at a designated medical facility chosen by the employer, at his own expense, to determine the circumstances related to abuse of the right to leave due to temporary incapacity for work and the use of the alcohol or other intoxicating substances which are listed in items 3 and 4 of the previous paragraph, or to determine the existence of the above circumstances otherwise in accordance with the general act.

Refusal of an employee to respond to the call of the employer to carry out the analysis shall be considered as a breach of labor discipline and the reason for the cancellation by the employer.

The reason for the cancellation by the employer can relate to the employer’s needs. Employee’s employment relation may be terminated if there is a valid reason relating to the employer’s needs, as follows:

• If as a result of technological, economic or organizational changes the need to perform a specific job ceases, or there is a decrease in workload
• If he refuses to conclude the annex of the contract pursuant to Article 171, paragraph 1, items 1-5) of the Labour Law.

Measures against Non-Compliance with Labor Discipline or Violation of Duties

Employer may, for breach of work duty or non-compliance with labor discipline in terms of Article 179, paragraphs 2 and 3 of the Labour Law, if he considers that there are extenuating circumstances or that breach of work duty, or non-compliance with labor discipline, is not of such a nature that the employee’s employment relation should be terminated, rather than terminating the employment contract, impose one of the following measures:

• Temporary suspension from work without compensation of earnings, for a period of one to 15 working days
• Fine of up to 20% of the basic earnings of the employee for the month in which the fine was imposed, for a period of up to three months, which is executed by deductions from earnings, based on the decision of the employer on the measure imposed
• Warning with a threat of dismissal which states that the employer shall terminate the employee’s employment contract without repeated warning, if within the next time period of six months he commits the same breach of work duty, or non-compliance with labor discipline.

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