Workers whose employment is terminated by notice given by the employer for organisational reasons

Workers whose employment is terminated by notice given by the employer for organisational reasons specified in Section 52 a) to c) of the Labour Code (cancellation or relocation of the employer, redundancy of the worker), or by agreement for the same reasons, are entitled to redundancy pay of at least:

• once their average (monthly) earnings where an employment relationship to the employer lasted less than one year;
• twice their average (monthly) earnings where an employment relationship to the employer lasted at least one year and less than two years;
• triple their average (monthly) earnings where an employment relationship to the employer lasted at least two years;

a worker whose employment relationship is terminated by notice given by their employer for one of the reasons laid down in Section 52(d) of the Labour Code (the worker is not allowed to perform their current work due to an industrial injury, an occupational disease, etc.) or by agreement for the same reasons, is entitled to receive redundancy pay of at least 12 times their average earnings upon termination of the employment relationship.

The minimum statutory right to redundancy pay can be increased in the collective agreement, in an internal regulation of the employer, or even in an individual agreement with the worker. Other cases in which redundancy pay is due may also be determined or agreed.

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