An employment relationship established through an employment contract can only be terminated in a manner prescribed by law.
The termination of an employment contract can be either regular or extraordinary.
The legislator, considering the interests of both the employer and the employee, has provided for the possibility of the employer terminating the employment contract due to economic, technical, or organizational reasons, which is known as a business-related termination.
This type of termination is a form of regular dismissal and is regulated by Article 155, Paragraph 1, Point 1 of the Labor Act.
As stipulated by the law, this type of termination can only be given to an employee if the need for their position has ceased due to: economic reasons (e.g., a decrease in demand for products and services, financial difficulties – such as a drop in the employer’s revenue), technical reasons (e.g., the introduction of automated systems), or organizational reasons (e.g., business reorganization).
Employer’s obligations before and after issuing termination
According to Article 150 of the Labor Act, before making a decision that significantly affects an employee’s position, the employer must consult with the workers’ council regarding the intended decision.
The employer is required to provide the council with relevant information necessary for making the decision and assessing its impact on the employee’s position.
The decision that is significant for the employee’s position includes issuing a business-related termination.
It is crucial to emphasize that if the employer fails to comply with the obligation to consult with the workers’ council, the termination decision will be null and void, and the employer will be liable for a serious labor offense.
While the employer is not obligated to accept the council’s objections, they must provide reasons for not accepting them.
However, for the legal validity of the termination, the employer must seek written consent from the workers’ council, though they are not required to follow its decision.
After issuing a business-related termination, in accordance with Article 115, Paragraphs 5 and 6 of the Labor Act, the employer is prohibited from hiring another employee for the same job for six months from the date of delivery of the decision regarding the business-related termination to the employee.
However, if there arises a need to employ someone for the same duties, the employer is obligated to offer a new employment contract to the employee who was terminated for business-related reasons. If the employer acts contrary to these provisions, they will be liable for a serious labor offense.
Obligations When Issuing a Business-Related Termination
The termination must be documented in writing and delivered to the employee in question.
The employer must provide an explanation for the decision, including relevant reasons for the termination.
Failure to include these reasons does not automatically invalidate the decision, but the termination will be deemed invalid if the employer fails to demonstrate that they considered the criteria relevant to the termination decision.
Protection in case of unlawful termination
An employee who believes that their rights have been violated by the employer may request the enforcement of that right within fifteen days from the delivery of the decision that violated their rights, or from the date they become aware of the violation.
If the employer does not comply with this request within fifteen days of receiving it, the employee can then seek protection of their violated rights through the competent court within an additional fifteen-day period.
An employee cannot seek judicial protection of their rights if they have not previously submitted a request to the employer for the enforcement of the violated right, except in cases where the employee is seeking compensation for damages or other monetary claims related to employment.
In judicial proceedings, the burden of proof for the reasons and conditions for regular termination rests with the employer.