Termination? Rules and important information

Running a business is one of the most challenging things a person can experience, but the rewards often make it worthwhile.

One of the most unpleasant moments for any entrepreneur is the moment of termination . Everything that begins has an end, and that does not exclude work teams.

Do you want to dismiss someone? It's time to learn more about regulations, clauses and much more. You avoid headaches, severance pay and fines that can run into the millions!

Are you in this situation? Then stay at your computer.

What is a termination of employment?

Termination of employment is the process by which the professional relationship between two parties, usually between employer and employee, is terminated.

All over the world, there are layoffs, resignations, or terminations by mutual agreement because people want to develop new interests or face new challenges. So, once you've made that decision, be aware that you'll need to comply with a number of regulatory requirements.

Both dismissal and resignation or termination of the contract must be in writing or with the original signature, so you can not terminate the employment verbally or over the Internet.

When they become valid? So, if the other party has received it, it is not necessary for that party to sign it in order to leave the company.

Types of dismissal

German law provides for two types of dismissal: ordinary and extraordinary dismissal. Let's look at these in detail:

1. Ordinary dismissal

The ordinary dismissal complies with the notice periods for dismissal and is characterized by the fact that no special reason has to be given for the dismissal of the employee.

This is the most common form of dismissal of an employee, as the working conditions are in order and any reason can be used to justify the dismissal.

In many cases, "business reasons" are cited, either due to staff reductions or new parameters.

2. Extraordinary dismissal

Extraordinary dismissal is somewhat more complicated, as it is carried out without observing any notice periods at the time of dismissal and is carried out in the case of serious misconduct. Here it is imperative to explain the reasons for the dismissal in writing, as many of the protocols are violated.

Some of the reasons for extraordinary dismissal are:

  • Breach of contract.
  • Violence.
  • Theft.
  • Damage to property.

In many cases, the employee has already received a notice of dismissal, so it is very likely that he or she will leave the company sooner rather than later if the misconduct continues.

Termination? Rules and important information

Can you be terminated during sick leave?

Although it sounds strange, an employee can receive a letter of dismissal even if he/she is on sick leave for medical or other reasons.

Is it legal? Yes, but the employer must explain his reasons very well in order for them to be accepted by the court in question. Here the employer must choose between two types of dismissal:

1. Personal dismissal.

These are cases when the employee wants to perform his/her duties but is unable to do so due to health reasons. Therefore, we will consider how the person's situation might be in the near future and what absences he has already had for the same reason.

The truth is that they always look for another solution, but in many cases there is no other option than to terminate the contract, otherwise it would be a loss for the company.

2. Notice of the duty of conduct

The situation is completely different. The employer believes that the employee wants to provoke his own dismissal for breach of contract , and the employee has already been warned several times.

If the employee ignores this, the dismissal will take place regardless of whether he or she is on sick leave, as he or she has been previously warned off.

What is a contract termination?

Now what are the alternatives if an employee wants to leave their job? The best solution is to withdraw or terminate the contract.

This form of dismissal is recommended by experts , if the employee realizes a mistake of his employer.

It is recommended to write a letter of termination explaining the reasons for leaving the company. However, you can terminate your contract without notice if you have a justified reason.

This opens a legal dispute in which there will be a winner and a loser . Therefore, we recommend that you consider carefully, because if you do not win, you will have to pay compensation equal to one month's salary.

Agreement between the parties

There is also termination of employment by agreement between the parties, and one could say that this is the most advantageous of all.

In this way, each party ensures that the other party does not take legal action against them, so that in the end, everyone is satisfied.

Legal aspects to consider

The law is very clear on some points. Take a look at this so you know what to expect before you fire a member of your team:

1. Termination of employment

The first thing to know about termination of employment is that it is regulated by the Civil Code. In this case, there are a number of rules that protect the employee from unfair dismissal.

The law identifies ordinary dismissal and extraordinary dismissal as the mechanisms available for terminating an employee's employment, each with the risks involved.

2. Working hours

The Working Hours Act, the Youth Employment Protection Act and the Maternity Protection Act help to ensure that employees only work as many hours as they are entitled to according to the signed document.

Thus, the law stipulates that normal working hours are 8 hours per day, except on Sundays and holidays, which equals a total of 48 hours per week.

3. Paid leave

This is where the federal paid leave law and the applicable collective bargaining agreements come into play.

24 days per year is the minimum leave an employee is entitled to, not counting Sundays and holidays. However, in collective agreements, the vacation time can be extended according to the agreement reached with the companies.

The truth is that a dismissal is not a game , but a legal process in which you must take into account many elements before ending the stay of an employee in your company.

Consider each of the points we have mentioned today so that you can apply the most appropriate mechanism for each situation. Don't hesitate to contact your legal team to review the various scenarios that may arise.

Did you already know all these details about the termination of the employment relationship? 😱 We are left with our mouths open. Let us know in the comments what you think about it.