Personal-conditioned termination is a type of regular terminaton which is regulated under Article 155 of the Labor Act.
It allows the employer to protect themselves from the negative consequences of the employment contract when an employee, through no fault of their own, is unable to perform their job duties properly.
This type of termination is applicable when an employee is incapable of fulfilling their duties due to permanent changes in their abilities or characteristics that prevent them from doing so.
For a decision of personal-conditioned termination to be valid, two key conditions must be met: first, the employee must be unable to fulfill their obligations under the employment contract, and second, this inability must stem from their permanent abilities or characteristics for which they are not responsible.
Reasons for personal-conditioned termination
In this case, the reasons for termination lie with the employee and stem from their abilities or personal characteristics.
These reasons are not the fault of the employee and must be of a permanent nature.
For example, if an employee who normally works as a warehouse clerk injures their hand in a way that results in a permanent impairment affecting their motor skills, they will no longer be able to perform the tasks required for their position.
This is because the role of a warehouse clerk involves handling machinery and heavy loads, which the employee is no longer capable of managing due to their injury.
It is important to emphasize that the mere imminent danger of becoming unable to work is not a valid reason for personal-conditioned termination.
Judicial practice has established that illness (or injury) can be grounds for personal-conditioned termination only if it is of permanent nature and if it is the main reason why the employee can no longer effectively perform their job.
On the other hand, the conditions for personal-conditioned termination are met in cases where an employee is unable to perform assigned tasks and the employer cannot offer an alternative position or retrain the employee for other duties.
Additionally, personal-conditioned termination may be justified if the employer determines that the employee is incapable of performing the tasks specified in their employment contract, despite their efforts.
Similarly, if employees performing the same tasks achieve significantly better results, this can serve as grounds for a personal-conditioned termination decision.
The termination must be delivered to the employee in writing, with an explanation of the reasons for the termination of the employment contract. In the event of a dispute, the burden of proof for the justification of the termination rests with the employer.
Rights and obligations after personal-conditioned termination
Since personal-conditioned termination is a type of regular dismissal, the provisions governing regular terminationare applicable.
After a personal-conditioned termination, the employee is still required to serve the notice period, the minimum duration of which is specified by Article 122 of the Labor
Act or as defined in the employment contract.
Additionally, in this case, the employee is entitled to a severance payment, provided that the termination was initiated by the employer and the employee has completed at least two years of continuous employment.