Compensation for terminating of employee contracts

If the termination of an employment contract is the result of serious culpable act or omission of the employer, then the employee should be compensated for this, even when employers act against the employee. In that case, the district court may award to the employee fair compensation. In addition, the law dictates that the employee has the right to transition allowance.

Height equitable compensation

It is for the court to determine the amount of equitable remuneration. The amount of the state - by its nature - in relation to the serious culpable acts or omissions by the employer. Judges have the ability to determine the amount of the compensation in a manner that follows the level of that employee.

However, changes to the law dictate that criteria such as salary and length of employment have no role to play here, though they were a part of the subdistrict court formula until July, 2015.

Criterion result does not matter

Furthermore, any additional compensation can not reflect whether the dismissal is reasonable in light of the consequences of the dismissal of the employee, and the provisions made by the employer, since this is already discounted in the transition fee.

Exceptional cases

The district court may grant fair compensation to the employee, in exceptional cases. That fee has a different character than transition compensation (compensation for dismissal and to enable the employee to facilitate the transition to another job).

In order to clarify these 'exceptional circumstances', a number of example situations follow in which additional fair compensation has been assigned:

If improper behaviour of the employer disturbs the working relationship (e.g. as a result of not wanting to discuss advances on his part) and the court concludes that there is no other option than redundancies;

if an employer discriminates against an employee, who raises an objection, and an unworkable situation arises where nothing more can be done except dismissal;

If an employer grossly fails to meet its obligations under the contract and creates a disturbed relationship. For example, where an employer fails to meets their obligation to supply their employee with suitable reintegration after sickness, causing neglect;

Where the employer submits a false reason for dismissal with the sole aim of creating an unworkable situation and to realise redundancy along that road;

Where an incapacitated employee is dismissed as a result of culpable inadequate care of the employer for working conditions.

The Subdistrict Court may only grant a fair compensation if the termination is attributable to the serious culpable act or omission by an employer.