This Global Termination Guide explains the different termination rules for countries in which Deel operates. If you have questions regarding the information contained in this guide, please reach out to your Deel point of contact.
If you are looking for information on how to terminate a Deel EOR Employee, please see How Do I Terminate a Full-Time Employee?
About Terminations
Terminations are complex legal processes and are handled on a case-by-case basis by Deel’s Legal Team.
The reason or cause for termination may not always determine the most appropriate method of termination, or entitlement to severance. Many jurisdictions impose a high legal threshold on terminations and employees are entitled to seek legal remedies through courts or local tribunals.
To reduce the risk of costly litigation, in most jurisdictions it is best practice to seek a mutually negotiated termination settlement that includes a full waiver and release from potential claims. Such settlements always include the payment of any statutory or common-law severance entitlement and frequently include additional severance based on prevailing local legal best practices.
Final termination costs will include all entitlements established by applicable statute, common law, and local best practices.
The information provided in this guide is not legal advice. If you have any questions or need information about terminating your Deel EOR Employee, please contact us.
All information, content, and materials available in this summary are for general information purposes only. While we are committed to delivering the most up-to-date information possible, changes in law, regulation, or other employment related practices may mean that some information is out of date.
Select a country from the list below to learn more. We are adding new countries all the time. If you can't find a country you're looking for and you require additional information, please contact your Account Manager.
Australia
Terminations in Australia can be complex. It is important to advise Deel as soon as possible of your intention to terminate an employee. There are generally five different compliant methods to terminate an employment agreement:
- Termination with Cause
- Termination for Redundancy or Business Reasons
- Resignation
- Mutual Termination
- Termination During the Probation Period
Terminations with Cause
You must inform Deel at least 30 days prior to terminating any employee with cause, except in cases of properly documented gross misconduct.
Australian law expressly establishes the grounds to terminate an employee with cause. Any termination should be expressly justified to be compliant. It is not possible to terminate an employee without a statutory cause.
In Australia, termination with cause - also known as summary dismissal - allows the employer to dismiss the employee immediately and without notice.
To terminate an employee with cause the conduct in question must amount to misconduct, as opposed to mere negligence or incompetence, and must indicate that the employee either no longer intends to be bound by the employment contract or intends to fulfill it in a manner substantially inconsistent with their obligations.
The misconduct must be substantiated and properly documented, and the reasons for termination must be explained to the employee who must also be provided with an opportunity to inquire about the termination.
Grounds for Termination with Cause
- Willful or deliberate behavior by the employee that is inconsistent with the continuation of the contract of employment
- Conduct that causes a serious and imminent risk to a person’s health or safety, or the reputation, viability, or profitability of the employer’s business.
Examples include:
- Performance issues that persist after having been given the opportunity to improve
- Attendance issues
- Stealing company money or property
- Misconduct, including any form of material violation of provisions in the employment agreement, policy, or applicable law
- Falsifying records
- Harassment
- Violence
Legal Notice Period for Termination with Cause
How much notice must be given?
Although a notice of termination is not legally required and the employee can be immediately terminated, it is recommended that a notice be served to the employee as a written confirmation of the termination of employment.
How is a notice for termination with cause delivered?
The notice of termination may be delivered personally to the employee, left at the employee’s last known address, sent by pre-paid post to the employee’s last known address, or (if the employee agrees) sent by email.
Severance for Termination with Cause
Is severance required?
No severance is owed to employees who are terminated with cause in Australia.
What is the term for final payment?
Within seven days after the termination of the employment agreement.
Termination for Redundancy or Other Business Reasons
Australian law expressly establishes the business reasons to terminate an employee. Any termination related to business reasons must be expressly justified to be compliant with the law. It is not possible to terminate an employee without a statutory cause. Termination for redundancy is allowed.
Termination for redundancy occurs when the particular set of functions, duties, and responsibilities that are attached to an employee’s position ceases to exist after changes in the operational requirements of the business.
Termination for redundancy or business reasons requires that:
- The employer no longer requires the employee’s job to be performed by anyone because of changes in the operational requirements of the employer’s business; and
- The employer has complied with the obligation to consult about redundancy, in accordance with an applicable modern award or enterprise agreement.
A modern award places obligations on the employer concerning the minimum terms and conditions of the employment for employees covered by the award. Modern awards cover particular sectors or occupations. These do not apply to high-income employees (the high-income threshold is defined by law and reviewed every four years).
An enterprise agreement has certain terms and conditions negotiated between an employer (or more than one employer) and a trade union or unions, or at least two employees.
Although the law does not provide a set of criteria when selecting employees for redundancy, any form of discrimination in the selection may give rise to a claim of unfair dismissal.
Grounds for Termination for Redundancy or Business Reasons
- There is a reorganization within the business
- The duties done by a particular employee are reallocated among other employees
- The tasks performed by the employee are automated
- The employer becomes insolvent
Legal Notice Period for Termination for Redundancy or Business Reasons
How much notice is required?
Employees who are engaged for a specific period of time or to accomplish a specific task or objective after which their employment ceases are not entitled to notice, regardless of their length of service.
The notice period for all other employees depends on their years of continuous service:
- 1 year or less: 1 week
- 3 years or less: 2 weeks
- 5 years or less: 3 weeks
- Over five years: 4 weeks
Employees 45 years of age or older that have complicated at least 2 years of continuous services are entitled to an additional 1 weeks notice.
Payment in lieu of notice is permitted.
How is notice delivered?
Notice may be delivered personally to the employee, left at the employee’s last known address, sent by pre-paid post to the employee’s last known address or, if agreed to by the employee, sent by email.
Important: If 15 or more employees will be terminated for redundancy, employers need to give written notification to Services Australia of the proposed dismissals.
Severance for Termination for Redundancy or Business Reasons
Is severance required?
Severance depends on the employee’s years of service, subject to any applicable modern award.
Employees who are engaged for a specific period of time or to accomplish a specific task or objective after which their employment ceases are entitled to severance in the amount of the remaining term of the contract.
- Less than one year: no severance
- 1 year: 4 weeks
- 2 years: 6 weeks
- 3 years: 7 weeks
- 4 years: 8 weeks
- 5 years: 10 weeks
- 6 years: 11 weeks
- 7 years: 13 weeks
- 8 years: 14 weeks
- 9 years: 16 weeks
- Employees with at least 10 years of service are entitled to 12 weeks of pay as the employee also qualifies for the full benefit of long service leave, which is a period of paid leave granted to an employee after working for the employer for a specific period.
Important: employees accrue vacation and statutory leave during the notice period and will be paid in respect of any accrued but unused statutory annual leave.
What is the term for payment of severance or final payment to the employee?
Within seven days after the termination of the employment agreement.
Resignation
An employee may resign at any time by delivering a signed letter of resignation in accordance with any applicable notice period in the employment agreement.
Legal Notice Period for Resignation
How much notice is required?
The notice period is stated in the employment agreement.
How is a notice of resignation delivered?
The letter of resignation must be signed with wet ink.
Severance for Resignation
There is no severance payment when an employee resigns.
Mutual Termination
In mutual termination, both the employer and employee mutually agree to terminate the employee’s employment for any reason. Mutual termination will always entail severance.
Commons Reasons for Mutual Termination
- The employee is potentially contentious or litigious
- The employee cannot be terminated with cause or for redundancy
- The employee has negotiated their mutual termination with the client
Legal Notice Period for Mutual Termination
No notice is needed.
Severance for Mutual Termination
Is severance required?
Severance to be mutually negotiated and agreed upon.
What is the term of final payment to the employee?
Within seven days after the termination of the employment agreement.
Termination During the Probation Period
An employer may unilaterally terminate an employee during the probation period if it can be demonstrated that the employee is not suitable for the job.
The notice period for termination under probation will be in the employment agreement as established by local law.
Although there is no statutory limit on the length of the probationary period, the period usually lasts from three to six months.
Grounds for Termination During the Probation Period
- Poor performance
- Bad behavior
- Persistent lateness/absence from work
Legal Notice Period for Termination During Probation
Notice must be given at least 1 week prior to the effective date of the termination. Fixed term employees are not entitled to notice.
Payment in lieu of notice is permitted, but in such case the employer must pay the employee at least the amount that the employee would have earned had employment continued through the end of the probation period.
The notice should specify the period of notice given or payment in lieu of notice, and the date on which employment will end.
Severance During the Probation Period
Is severance required?
No severance payment is required for terminations during the probation period in Australia.
What is the term for payment of severance or final payment to the employee?
Within seven days after the termination of the employment agreement.
Brazil
Terminations in Brazil are not complex. There are generally five different compliant methods to terminate an employment agreement:
- Termination with Cause
- Termination Without Cause
- Resignation
- Mutual Termination
- Termination During the Probation Period
Termination with Cause
The law expressly establishes the grounds to terminate an employee with cause. Any termination with cause should be expressly justified to be compliant with the law. It is not possible to terminate an employee with cause without statutory grounds.All disciplinary actions for termination for cause, including warnings, suspensions, and dismissal must be take as soon as the employer becomes aware of the misconduct. Failure to take action will be seen as “tacit forgiveness”.
In cases of repetitive misconduct that does not warrant immediate dismissal, the employer must notify the employee in writing of any action including warning or suspension. All disciplinary letters must be sent to the employee by email.
Grounds or Reasons for Termination with Cause
- Act of improbity
- Recklessness of conduct or malpractice
- Frequent negotiation on your own or someone else's account without the employer's permission, and when it constitutes an act of competition with the company for which the employee works, or is detrimental to the service
- Criminal conviction passed in res judicata, if there was no suspension of the sentence
- Negligence in the performance of the employee’s functions
- Frequent on-the-job drunkenness
- Breach of privileged company information
- Act of indiscipline or insubordination
- Job abandonment
- Acts harmful to the honor or to the good reputation of the company while on duty, or any physical offences against others while on duty except in the case of legitimate self-defense or defense of others
- Constant gambling
- Loss of license or other requirements established by law for the exercise of the profession as the result of the employee's willful conduct
- The practice, duly proven in an administrative inquiry, of acts that threaten national security
Legal Notice Period for Termination with Cause
How much notice must be given?
No notice needed
How is notice of termination with cause delivered?
The letter of termination can be sent by email, and the signature of both parties can be digital/electronic.
Severance for Termination with Cause
Is severance still due under this type of termination?
No severance is owed to employees who are terminated with a just cause in Brazil.
The employee will receive any outstanding salary and proportional vacation and other entitlements, including 13th salary.
What are the terms of payment of severance or final payment of wages owed to the employee?
10 days after the termination of the employment agreement
Termination Without Cause
In Brazil, terminations for redundancy and other business reasons fall into the category of termination without cause. The employer is free to decide on the dismissal of any employee and does not need to justify the decision.
Legal Notice Period for Termination Without Cause
How much notice must be given?
Legal notice period is based on the length of an employee’s service. Employees are entitled to 30 days notice for employment of less than 1 year, and an additional 3 days for each additional year up to a maximum of 90 days total notice.
The employer must choose one option:
- Give the employee 30 days working notice and pay an indemnity for the additional days notice above 30 days; or
- Pay the full legal notice period.
Employees on working notice will have their hours reduced by 2 per day, or are entitled to 7 paid days off work at the end of the notice period.
How is notice of termination without cause delivered?
The letter of termination can be sent by email, and the signature of both parties can be digital/electronic.
Severance for Termination Without Cause
In Brazil, all employees who are terminated without cause are entitled to severance pay.
An employee terminated without cause is owed all outstanding salary for days worked, payment for any unworked legal notice period, proportional annual vacation and other applicable entitlements including 13th salary. In addition, the employee is entitled to 40% of the FGTS (Social Security Fund) balance as well as an additional payment of ⅓ of any vacation balance.
Resignation
Employees can resign at any time by providing 30 days written notice. Resignation letters must be handwritten, and signed in wet ink. Employees are required to provide this letter in addition to signing the resignation letter on the platform.
Legal Notice Period for Resignation
30 days notice
Severance for Resignation
Is severance required?
No severance is owed to employees who resign in Brazil. Employees are entitled any outstanding salary and proportional vacation and other entitlements, including 13th salary and an additional payment of ⅓ of any vacation balance.
What is the term of final payment
10 days after the termination of the employment agreement
Mutual Termination
Employers and employees may agree to terminate their employment relationship at any time by giving their mutual consent and agreeing on the terms. This form of termination will always entail payment of severance.
Commons Reasons for Mutual Termination
- The employee is potentially contentious or litigious
- The employee has negotiated their mutual termination with the client
Legal Notice Period for Mutual Termination
How much notice must be given?
The employer must give the employee a 15 day notice or pay an indemnity equal to the notice.
Severance for Mutual Termination
Is severance required?
In Brazil, all employees who mutually agree to their termination are entitled to severance pay.
As a minimum, the employee is a owed all outstanding salary for days worked, 50% payment for any unworked legal notice period, proportional annual vacation and other applicable entitlements including 13th salary. In addition, the employee is entitled to 20% of the FGTS (Social Security Fund) balance as well as an additional payment of ⅓ of any vacation balance.
What is the term of payment for final payment?
10 days after the termination of the employment agreement.
Termination During the Probation Period
The employer or the employee can terminate the relationship unilaterally during the probation period without expressing a cause. No notice is required unless otherwise agreed to in the employment agreement.
Legal Notice Period for Termination During Probation
How much notice must be given?
No notice is required unless otherwise provided for in the employment agreement
How is notice for termination during the probation period delivered?
The letter of termination can be sent by email, and the signature of both parties can be digital/electronic.
Severance for Termination During the Probation Period
Is severance required?
In Brazil, all employees who are terminated during the Probation Period are entitled to severance pay.
The employee is owed all outstanding salary for days worked as well as a payment of 50% of the remuneration that would have been earned through the remainder of the probation period. The employee is also entitled to all proportional annual vacation, including an additional payment of ⅓ of the vacation balance and other applicable entitlements. In addition, the employee is entitled to 40% of the FGTS (Social Security Fund) balance.
There is no payment in lieu of legal notice except in the event of a reciprocal early termination clause in the employment agreement.
What is the term of payment for final payment?
10 days after the termination of the employment agreement.
Canada
Terminations in Canada can be exceedingly complex due to provincial differences, nuances between statutes and common law, and provincial case law. It is important to advise Deel as soon as possible of your intention to terminate an employee. There are generally five different compliant methods to terminate an employment agreement in Canada:
- Termination with Cause
- Termination without Cause
- Resignation
- Mutual Termination
- Termination During the Probation Period
Termination with Cause
Canadian legislation expressly establishes the causes to terminate an employee and in most provinces the bar for such termination is very high. Any termination with cause in Canada should be expressly justified to be compliant with the law. It is generally not possible to terminate an employee without a statutory cause.
Canada’s courts place a high burden on employers seeking to terminate an employee with cause. In order to terminate an employee with cause Deel will require a robust investigation and irrefutable evidence of the cause. Determinations will be made by Deel’s legal team on a case-by-case basis.
A termination with cause requires both:
- A robust investigation by the client that produces clear evidence of the alleged cause; and
- That the alleged cause was in clear contravention of the company handbook, applicable provincial employment standards legislation, or the offer of employment.
Grounds for Termination with Cause
- Attendance issues, including absenteeism and lateness
- Stealing company money or property
- Misconduct meaning any form of material violation of the provisions in the employment agreement, policy, or applicable law
- Falsifying Records
- Workplace harassment and violence
- Dishonesty, including. fraud, theft, breach of trust, deception
- Insubordination and insolence
Please note that job performance issues are generally not grounds for termination with cause in Canada.
Legal Notice Period for Termination With Cause
How much notice must be given?
No notice is required.
How is a notice for termination with cause delivered?
The termination letter can be sent by email, and the signature of both parties can be digital/electronic.
Severance for Termination with Cause
Is severance required?
No severance is owed to employees who are terminated with cause in Canada. However, in Canada, additional severance may be advisable in exchange for a release and this will always be Deel’s recommendation to clients.
Termination Without Cause
Provincial legislation expressly establishes the possibility of terminating an employee without cause for redundancy and business reasons, including employee job performance. Termination for business reasons does not need to be expressly justified to be compliant with the law. Most provinces recognize certain employees as protected from such termination, such as those who are temporarily disabled and pregnant employees.
Grounds for Termination Without Cause
- Business Reasons, including company downsizing or restructuring
- Performance Issues
- Lack of organizational and cultural fit
- Any other situation which cannot be justified as a with cause termination in any given province
Legal Notice Period for Termination Without Cause
How much notice must be given?
Notice in Canada will vary depending on the following:
- The applicable provincial employment standards legislation
- The relevant provincial common-law precedent
The reasonableness of a common-law notice period is based on the particulars of the case, with regard to the character of employment (position, salary, responsibility), the length of service, the age of the employee, and the availability of similar employment having regard to the experience, training, and qualifications of the employee.
How is a notice for Termination without cause delivered?
The termination letter can be sent by email, and the signature of both parties can be digital/electronic.
Severance for Termination Without Cause
Is severance required?
Yes, this is by far the most common type of termination in Canada and will always require some degree of either statutory severance or common-law severance:
- Statutory severance depends on applicable provincial employment standards legislation and the length of an employee’s service.
- Common-law severance compensates an employee for the amount of time it will take them to find comparable work. There is no formula for common-law severance, and it is determined on a case-by-case basis.
An additional payment is usually negotiated to secure a post-termination release.
What is the term of payment for severance or final wages to the employee?
Usually 10 to 15 days after the termination of the employment agreement.
Resignation
The employee can resign at any time by providing a signed resignation letter.
Legal Notice Period for Resignation
How much notice must be given?
No notice is legally required
Are there local requirements or restrictions?
The resignation letter must be signed by the Employee. Due to local payroll cut-off times it may be necessary to adjust resignation dates. Clients should contact Deel as soon as practicable to process an employee resignation.
Severance for Resignation
Is severance required?
No severance is owed to employees who resign in Canada. However, additional severance may be advisable in exchange for a release.
Mutual Termination
Mutual termination requires the employee’s sign-off and always entail severance above statutory requirements.
Mutual termination agreements must be reviewed by Canadian counsel. If you are seeking to negotiate a termination agreement with an employee, please contact Deel well in advance of the target termination date.
There are no mandatory grounds to make a mutual termination of the employment contract. The parties can agree to terminate their employment relationship by giving their mutual consent and agreeing on the terms of the termination.
Commons Reasons for Mutual Termination
- The employee is potentially contentious or litigious
- The Employee cannot be terminated with or without cause, or terminating without cause may be contentious
- The employee has negotiated their mutual termination with the client
Legal Notice Period for Mutual Termination
No notice is legally required as this is a negotiated termination and the effective date is determined by mutual agreement.
Severance for Mutual Termination
Is severance required?
Mutual termination will always include some payment of severance based on common-law estimates for the applicable province.
What is the term for payment of severance or final payment to the employee?
Usually 10 days after the termination of the employment agreement
Termination During the Probation Period
The employer can terminate the employment relationship unilaterally during the probation period without cause provided that the termination does not constitute discrimination and the employee does not have additional legal protections (such as a disability, pregnancy, or a union).
Legal Notice Period for Termination During Probation
No notice is legally required.
Severance for Termination During the Probation Period
No severance is owed to employees who are terminated during the probation period. However, additional severance may be advisable in exchange for a release.
Colombia
Terminations in Colombia can be complex. There are generally five different compliant ways to terminate an employment agreement in the country, these include:
- Termination with Cause
- Termination Redundancy or Other Business Reasons
- Resignation
- Mutual Termination
- Termination During the Probation Period
Termination with Cause
The law expressly establishes the causes to terminate an employee. Any termination should be expressly justified to be compliant with the law. It is not possible to terminate an employee without a statutory cause.
In Colombia, multiple grounds exist for termination with cause. Deel’s legal team must evaluate grounds for termination on a case-by-case basis to ensure that a lawful and explicit cause applies. Deel requires at least 30 days notice to terminate an employee with cause in Colombia.
Termination with cause in Colombia requires the employer to conduct a robust disciplinary process in line with the Constitutional Court’s provisions regarding disciplinary due process.
Grounds for Termination with Cause
- Attendance issues
- Stealing company money or property
- Misconduct (any form of material violation of provisions in the employment agreement, policy, or applicable law)
- Falsifying Records
- Harassment
- Violence
Specific reasons may be found in:
- The Employee’s Contract
- The Company Handbook
- The Colombian Labor Code
Legal Notice Period for Termination with Cause
How much notice must be given?
10 calendar days before the initiation of the disciplinary process.
How is notice given?
The letter of termination can be sent by email, and the signature of both parties can be digital/electronic.
Severance for Termination with Cause
Severance payment is not required for termination with cause in Colombia
Termination for Redundancy or Business Reasons
Employees in Colombia may be terminated for redundancy or other business reasons. This is referred to as termination without cause. Compliant terminations must not violate the employment rights or constitutional rights of the terminated employee.
Termination without cause always requires the payment of a statutory severance. Additional payment may be required to secure a post-termination release.
Limitations on Termination for Redundancy or Business Reason
This form of termination is generally viable for any reason, as long as they do not violate an employee's constitutional or employment rights. You must inform Deel of all the facts and circumstances of any termination without cause.
Limitations to this form of termination are:
- If the employee is pregnant, there will be exceptions to the viability of this termination.
- If the employee is sick or on sick leave, there will be exceptions to the viability of this termination
- If the employee’s constitutional or employment rights are being violated. This includes union protections, discrimination, among others.
Legal Notice Period for Termination for Redundancy or Business Reasons
How much notice must be given?
10 calendar days.
How is notice given?
The letter of termination can be sent by email, and the signature of both parties can be digital/electronic.
Severance for Termination for Redundancy or Business Reasons
Is severance required?
Severance is always due for terminations without cause in Colombia
Fixed contract: All payments owed for the rest of the contract, including monthly salary, 13th and 14th salaries and all other statutory benefits which would be owed during the term of the contract.
Indefinite/permanent contract: based on years of service
- 30 days for 1 year or less of service
- 20 days for each year or proportional year thereafter
What is the term of payment?
The day after the termination of the employment agreement or a reasonable time that does not exceed 15 days.
Resignation
Employees in Colombia may resign at any time. There is no statutory requirement for notice and any contractual notice period is invalid. The employee's signature is required on the resignation letter.
Legal Notice Period for Resignation
How much notice must be given?
None
How must notice be given?
- The resignation must come from the Employee unilaterally and must not be forced or coerced by the Client or by Deel.
- The resignation letter must identify the employee’s last day.
- The resignation letter must be signed by the employee.
Severance for Resignation
There is no severance for resignation in Colomiba
Mutual Termination
In mutual termination, both the employer and employee mutually agree to terminate the employee’s employment for any reason. Mutual terminations will always entail a severance.
Common Reasons for Mutual Termination
- The employee is potentially contentious or litigious
- The Employee cannot be terminated with or without cause
- The employee has negotiated their mutual termination with the client
Legal Notice Period for Mutual Termination
No notice period is required.
Severance for Mutual Termination
Although no statutory requirement for severance exists it is advisable to offer a severance to reduce the risk of the mutual agreement being contested in court.
Termination During the Probation Period
During the probation period, the employee can terminate the relationship unilaterally without expressing a cause.
Employers may not arbitrarily terminate the employment contract during the probation period if such termination would otherwise be discriminatory or unlawful. Employers must have clear reasons connected to an employee's performance or workplace behavior.
The notice period for termination under probation will be in the employment agreement.
Grounds for Termination During Probation
- Poor performance
- Bad behavior
- Persistent lateness/absence from work
Legal Notice Period for Termination During Probation
No notice is required for terminations during probation periods.
Severance for Termination During Probation
Severance is not due for terminations during probation periods.
Estonia
Terminations in Estonia can be complex and the terms applicable to any termination will depend on whether the contract is fixed or indefinite, and whether or not the termination occurs during the probation period.
In Estonia, employment agreements may expire, or they may be terminated as the result of ordinary cancellation or extraordinary cancellation, including termination with cause.
There are generally five different compliant methods to terminate an employment agreement:
- Termination with Cause
- Termination for Redundancy or Other Business Reasons
- Resignation
- Mutual Termination
- Termination During the Probation Period
Termination with Cause
In Estonia, both employers and employees can terminate the employment relationship unilaterally in extraordinary circumstances.
Employee-initiated terminations may result in an employer-obligation to pay severance.
For Employers, the law expressly establishes the causes to terminate an employee. Any termination should be expressly justified to be compliant with the law. It is not possible to terminate an employee without a statutory cause. You must inform Deel 30 days prior to terminating any employee with cause, except in cases of properly documented serious misconduct.
While there is no uniform disciplinary process, employers are expected to substantiate termination with proof of cause. Employees must be notified of the grounds for their termination in writing.
Grounds for Termination with Cause
Employees may terminate the employment relationship with cause if:
- the employer has harassed the employee
- the employer has considerably delayed the payment of wages
- Continued employment poses a real threat to the employee's life, health, morals, or reputation
Employers may terminate the employee with cause on the following grounds:
- Reduced capacity for work due to state of health. A reduced capacity for work is presumed if the employee’s state of health does not allow for the performance of work duties for over four months.
- Decreased capacity for work due to insufficient work skills, unsuitability for the position, or inadaptability, that does not allow for the continuation of the employment relationship
- Breach of duties including disregard for the employer’s reasonable instructions and warnings
- Working in a state of intoxication
- Theft, fraud, or another act causing the loss of the employer’s trust in the employee
- Causing a third party’s distrust in the employer
- Wrongfully - to a significant extent - damaging the employer’s property or causing a threat of such damage;
- Breach of confidentiality or restriction of trade
Legal Notice Period for Termination with Cause
How much notice must be given?
An employee is not obligated to give the employer advance notice for termination with cause.
The minimum notice the employer needs to give depends on the duration of the employment relationship with the employee:
- Less than 1 year: at least 15 calendar days
- Less than 5 years: at least 30 calendar days
- Less than 10 years: at least 60 calendar days
- Over 10 years: at least 90 calendar days
The notice period may not apply for both employee and the employer if, considering all circumstances and mutual interests, it cannot be reasonably demanded that the performance of the contract be continued until the expiry of the agreed term or term for advance notice.
How is notice given?
The termination letter can be signed with wet ink and delivered directly to the employee or sent by post mail.
The termination letter can also be sent by email, where the signature of both parties is digital or electronic.
Severance for Termination with Cause
Is severance required?
No severance is owed to employees who are terminated with cause in Estonia.
If an employee cancels the employment contract extraordinarily on the grounds that the employer is in fundamental breach of the contract, the employer shall pay the employee compensation of up to three months average wages.
What is the term of payment?
Severance and final pay must be paid on the date of termination of the employment agreement.
Termination for Redundancy or Other Business Reasons
The law expressly establishes the business reasons to terminate an employee. Any termination related to business reasons must be expressly justified to be compliant with the law. It is not possible to terminate an employee without a statutory cause. Termination for redundancy is allowed.
Before terminating an employee for redundancy or other business reasons an employer is obligated to offer other work to the employee and if necessary organize in-service training. Changes in an employee's working conditions may also be required unless this would cause hardship for the employer.
Except in cases of bankruptcy or a cessation of business, when cancelling a fixed-term employment contract for business reasons the employee is entitled compensation in the amount that they would have earned until the expiry of the contract.
Please note that employers cannot cancel the contract of pregnant women or employees raising children under three years of age for business reasons.
Grounds for Termination for Redundancy or Other Business Reasons
- Decrease in the work volume, reorganization of work, or other cessation of work (lay-off)
- Cessation of the activities of the employer
- Declaration of bankruptcy by employer or termination of bankruptcy proceedings, without declaring bankruptcy, by abatement
Legal Notice Period for Termination for Redundancy or Other Business Reasons
How much notice must be given?
The minimum advance notice the employer needs to give depends on the duration of the employment relationship with the employee:
- Less than 1 year: at least 15 calendar days
- Less than 5 years: at least 30 calendar days
- Less than 10 years: at least 60 calendar days
- Over 10 years: at least 90 calendar days
The notice period may not apply if, after considering all the circumstances and mutual interests, it is not reasonable to demand the performance of the contract until expiry or the end of the notice period.
How is notice given?
The termination letter can be signed with wet ink and delivered directly to the employee or sent by post mail.
The termination letter can also be sent by email, where the signature of both parties is digital or electronic.
Severance for Termination for Redundancy or Other Business Reasons
Is severance required?
Employees are entitled to a minimum of one-month of their average wages when terminated for redundancy.
What is the term of payment?
Severance and final pay must be paid on the date of termination of the employment agreement.
Resignation
The employee may resign at any time by providing 30 days notice, or 15 days during the probation period.
Legal Notice Period for Resignation
30 days, or 15 days during the probation period
Severance for Resignation
Is severance required?
There is no severance payment when an employee resigns.
What is the term of payment?
Final pay must be paid on the date of termination of the employment agreement.
Mutual Termination
In mutual termination, both the employer and employee mutually agree to terminate the employee’s employment for any reason. Mutual terminations will always entail a severance.
Common Reasons for Mutual Termination
- The employee is potentially contentious or litigious
- The employee cannot be terminated with or without cause
- The employee has negotiated their mutual termination with the client
Legal Notice Period for Mutual Termination
No notice is needed.
Severance for Mutual Termination
Is severance required?
While no severance is required by law, negotiating a mutual termination agreement will always entail the offer of a severance package.
What is the term of payment?
Severance and final pay must be paid on the date of termination of the employment agreement.
Termination During the Probation Period
The employer cannot terminate the relationship unilaterally during the probation period without expressing a cause consistent with the purpose of the probation period. However, employees are free to resign at their discretion. The notice period for termination under probation will be in the employment agreement.
Grounds for Termination During the Probation Period
Any termination during the probation period should be consistent with the purpose of probation, that is assessing an employee's health, knowledge, skills, abilities, and personal characteristics to ensure that they correspond to the level required for the performance of job duties.
Grounds for termination during the probation period include:
- Poor performance
- Bad behavior
- Persistent lateness/absence from work
- Insufficient education or qualification
- Health conditions preventing the proper performance of the work duties
Legal Notice Period for Termination During Probation
How much notice must be given?
15 days or as provided in the employment agreement
How is notice given?
The termination letter can be signed with wet ink and delivered directly to the employee or sent by post mail.
The termination letter can also be sent by email, where the signature of both parties is digital or electronic.
Severance for Termination During the Probation Period
Is severance required?
No severance is owed to employees who are terminated during the probation period in Estonia.
What is the term of payment?
Final pay must be paid on the date of termination of the employment agreement.
France
Terminations in France are complex. There are generally six different compliant methods to terminate an employment Agreement in France:
- Termination for Disciplinary Reasons
- Termination for Non-Disciplinary Reasons
- Termination for Incapacity
- Resignation
- Mutual Termination
- Termination During the Probation Period
Please note that due to the Deel EOR employment relationship, terminations for business reasons and redundancy require a negotiated mutual termination agreement with employees.
Termination for Disciplinary Reasons
The law expressly establishes the causes to terminate an employee. Any termination should be expressly justified to be compliant with the law. It is not possible to terminate an employee without a statutory cause. You must advise Deel at least 30 days prior to any termination for disciplinary reasons.
Termination for disciplinary reasons may occur when an employer considers that the behavior of an employee is inconsistent with the normal performance of the employment contract and constitutes professional misconduct, preventing the continuation of the employment relationship.
The termination must be justified and documented. It is not enough simply to allege or believe that misconduct has occurred. It must be documented and tested.
A formal disciplinary process that includes notifying the employee of the reasons for their dismissal, and providing the employee with an opportunity to speak in their own defense. The disciplinary process cannot be initiated more than two months after the discovery of the facts that form the basis for the termination. You should inform Deel immediately upon such discovery.
Please note that terminations for professional incompetence and poor performance are usually non-disciplinary terminations in France. They may only be pursued as disciplinary terminations when the poor quality of work or results is caused by willful absenteeism or misconduct.
Grounds for Termination for Disciplinary Reasons
- Gross misconduct, including unjustified prolonged absence or frequent unjustified short absences, violent behavior, threats, bullying, financial misconduct, refusal to work
- Serious misconduct including repeated minor faults, negligence, refusing a change in working conditions.
Legal Notice Period for Termination for Disciplinary Reasons
How much notice must be given?
The notice period will depend on several factors including the seniority level fo the employee, the terms of employment, and the grounds for termination. Deel’s legal team will need to evaluate and confirm the notice period on a case-by-case basis.
How is notice given?
Registered letter sent by French post or by R24.
Severance for Termination for Disciplinary Reasons
Is severance required?
No severance is owed to employees who are terminated for gross or serious misconduct.
Employees are entitled to all accrued but unused vacation and any other entitlements covered by their Collective Bargaining Agreement such as the réserve financière.
What is the term of payment?
The date of termination of the employment agreement.
Termination for Non-Disciplinary Reasons
The law expressly establishes the reasons to terminate an employee for non-disciplinary reasons. Any termination should be expressly justified to be compliant with the law. It is not possible to terminate an employee without a statutory reason.
Non-disciplinary terminations are the result of poor performance or professional incompetence that make it impssible for the to continue the employment relationship. A formal process must be followed that includes notifying the employee and disclosing the reasons for the termination and providing the employee an opportunity to offer an explanation.
Terminations for disciplinary reasons related to professional incompetence or poor performance may only occur when the poor quality of work or results is caused by willful absenteeism or misconduct.
Grounds for Termination for Non-Disciplinary Reasons
Professional incompetence, defined as the lasting inability of an employee to satsifactorly perform a job corresponding to their qualifications.
Poor performance, defined as the failure to meet realistic objectives compatible with the company’s market situation as a result of professional inadequacy or fault.
Dismissal may not be based on a disciplinary failure. It must be based on the precise, objective, and verifiable facts attributable to the employee.
Legal Notice Period for Termination for Non-Disciplinary Reasons
How much notice must be given?
The notice period will depend on several factors including the seniority level fo the employee, the terms of employment, and the grounds for termination. Deel’s legal team will need to evaluate and confirm the notice period on a case-by-case basis.
How is notice given?
Registered letter sent by French post or by R24.
Severance for Termination for Non-Disciplinary Reasons
Is severance required?
Severance is owed to employees terminated for non-disciplinary reasons. Severance will be determined by the terms of any Collective Bargaining Agreement. Employees are also entitled to al accrued by unused vacation and other entitlements such as theréserve financière.
What is the term of payment?
The date of termination of the employment agreement.
Termination for Incapacity
Termination for incapacity is a personal, non-disciplinary dismissal. It occurs when an employee becomes incapable of carrying out their duties by reason of medical unfitness.
These terminations may only occur as the result of a formal process that includes a declaration by the doctor-at-work that the continuation of employment would be detrimental to the health of the employee or that their state of health is a barrier to any reclassification of the job. Employers must demonstrate that it is impossible to reclassify the employee, or that the employee has refused reasonable redeployment positions.
Reasons for Termination for Incapacity
- Medical incapacity resulting from a work-related accident or illness
- Medical incapacity resulting from a non-work related accident or illness
Legal Notice Period for Termination for Incapacity
No notice is needed subsequent to the formal process.
Severance for Termination for Incapacity
Is severance required?
For non-work related incapacity the employee is entitled to:
1/4 monthly salary for each of the first 10 years of service
1/3 monthly salary for each year after 10 years
For work-related incapacity - that is occupational injury or illness - the severance is double the amount for non-work related incapacity.
What is the term of payment?
The date of termination of the employment agreement.
Resignation
The employee can resign at any time by providing notice in accordance with their employment agreement and Collective Bargaining Agreement (CBA).
Legal Notice Period for Resignation
How much notice must be given?
The employee must give notice as required by their employment agreement or collective bargaining agreement, usually:
- ETAM: one month notice regardless of seniority
- Executive: three months notice regardless of seniority
The employer may exempt the employee from serving the notice period.
How is notice given?
Registered letter sent by French post or by AR24.
Severance for Resignation
Is severance required?
There is no severance payment when an employee resigns. Employees are entitled to their reserve financière.
What is the term of payment?
The date of termination of the employment agreement.
Mutual Termination
In mutual termination, both the employer and employee mutually agree to terminate the employee’s employment for any reason. Mutual terminations will always entail payment of a severance.
Mutual terminations must follow a formal procedure that includes notifying and obtaining the approval of the relevant Regional Directorate for Economy, Employment, Labor, and Solidary (DREETS).
The law provides for a minimum severance. Following a negotiated mutual termination agreement, either party has 15 days to withdraw from the agreement without giving any reason. For this reason, negotiated mutual terminations may include a severance greater than the required minimum.
Reasons for Mutual Termination
- The employee is potentially contentious or litigious
- The employee cannot be terminated for disciplinary or non-disciplinary reasons
- The employee has negotiated their mutual termination with the client
Legal Notice Period for Mutual Termination
No notice is needed. However, the termination process takes at least 45 days.
Severance for Mutual Termination
Is severance required?
Yes, mutual termination will always entail payment of a severance. The minimum severance is established by French Law and the Collective Bargaining Agreement. Because of the complexity of the process, it is not uncommon for the parties to negotiate severance greater than the required minimum. Employees are entitled to all accrued but unused vacation and any other entitlements such as the réserve financière.
What is the term of payment?
The date of termination of the employment agreement.
Termination During the Probation Period
Both the employer and the employee can terminate the relationship unilaterally during the probation period without expressing a cause. The notice period for termination under probation will be in the employment agreement.
While termination during the probation period does not require any specific cause, there are special limitations that may prevent termination.
Special Limitations on Termination During Probation
Protected employees, including elected staff representatives may not be terminated during the probation period without obtaining the approval of the Labor Inspectorate.
Employees with work related injuries or illnesses may not be terminated during the probation period except in cases of serious misconduct or for reasons demonstrably not connected to the illness or injury.
Termination during probation must not be discriminatory, including for sick leave or by reason of pregnancy.
Legal Notice Period for Termination During Probation
How much notice must be given?
Notice depends on who is initiating the termination, and the length of service.
Termination by the employer:
- Less than 8 days of work: 24 hours notice
- 8 days - 1 month of work: 48 hours notice
- More than 1 month of work: two weeks notice
- More than 3 months of work: on month notice
Termination by the employee:
- Less than 8 days of work: 24 hours notice
- More than 8 days of work: 48 hours notice
How is notice given?
Registered letter sent by French post or by AR24.
Severance for Termination During Probation
No severance is owed to employees who are terminated during the probation period in France.
Employees are entitled to any accrued but unused vacation and their reserve financière.
Germany
Terminations in Germany are complex. There are generally five different compliant methods to terminate indefinite-term employment agreements in the country. Employment agreements for fixed - or definite - terms cannot be terminated prior to the end of the term except by a negotiated mutual termination agreement.
- Termination with Cause
- Termination for Redundancy or Business Reasons
- Resignation
- Mutual Termination
- Termination During the Probation Period
Termination with Cause
In Germany, employees can be terminated with cause for serious misconduct such as violence, theft, or harassment. The misconduct must be so serious that it makes the continued employment relationship untenable, even temporarily. You must inform Deel 30 days prior to terminating an employee with cause, except in cases of properly documented serious misconduct.
Terminations with cause must follow a disciplinary process that in most cases must include a notification to the employee that outlines the facts that led to the initiation of the process as well as a warning that termination could result. Except in cases of the most serious misconduct, employees should be given an opportunity to modify their behavior to avoid termination.
Exceptions to this include where a serious breach of duty is involved that cannot be resolved by a change in behavior or where no change in behavior can reasonably be expected.
Grounds for Termination with Cause
- Attendance issues
- Stealing company money or property
- Misconduct, including any form of material violation of provisions in the employment agreement, policy, or applicable law
- Falsifying records
- Harassment
- Violence
- Violation of the company code of conduct or ethics policy
- Going on an unauthorized holiday
Legal Notice Period for Termination with Cause
How much notice must be given?
No notice is required. However the disciplinary process must be initiated no more than 2 weeks after the discovery of the facts that give rise to the termination.
How is a notice for termination with cause delivered?
The notice of termination must be delivered in writing, and signed with wet ink.
The letter may be personally delivered or deposited in the mailbox at their home address. Proof of delivery is required in both cases. If sent by post a registered letter is required.
The employee is not obligated to sign the letter, but if the letter is delivered personally it is normal practice to request a signature.
Severance for Termination with Cause
Is severance required?
No severance payment is required for terminations with cause in Germany.
What is the term for final payment?
Final pay must be paid on the date of termination of the employment agreement.
Termination for Redundancy or Business Reasons
German law expressly establishes the business reasons to terminate an employee. Any termination related to business reasons must be expressly justified to be compliant with the law. It is not possible to terminate an employee without a statutory reason. Termination for redundancy is allowed.
In selecting employees to terminate for reasons of redundancy, the employer must fulfill certain obligations, including ensuring that there are no other vacancies in the company that can be filled by the employee.
Selection for redundancy is based on certain social criteria (Sozialauswahl). The employer must consider the length of service, age, existing maintenance obligations such as child support, and other factors related to the impact of the termination. The selection is made among employees with the same skill and job level.
When notifying employees of a termination for redundancy, the notification must state that the termination is based on operational or business reasons and there must be at least 3-weeks notice to provide the employee with sufficient time to contest the validity of the termination with the labor court.
Reasons for Termination for Redundancy or Business Reasons
- Company downsizing or restructuring
- Technology improvements and developments
Legal Notice Period for Termination for Redundancy or Business Reasons
How much notice must be given?
Notice depends on length of service:
- Under 2 years: 1 month
- 2 years: 2 months
- 5 years: 3 months
- 8 years: 4 months
- 10 years: 5 months
- 12 years: 6 months
- 15 years: 7 months
Please note that in Germany the notice period begins on the 15th day or the end of the calendar month.
How is a notice for Termination for Redundancy delivered?
The notice of termination must be delivered in writing, and signed with wet ink.
The letter may be personally delivered or deposited in the mailbox at their home address. Proof of delivery is required in both cases. If sent by post a registered letter is required.
The employee is not obligated to sign the letter, but if the letter is delivered personally it is normal practice to request a signature.
Severance for Termination for Redundancy or Business Reasons
Is severance required?
Employees are entitled to severance if they have been employed for more than six months and if the company usually has more than 10 employees.
Severance is 1/2 month’s pay for each year of service/ Any period of service of more than 6 months is considered a full year.
What is the term for final payment?
Severance and final pay must be paid on the date of termination of the employment agreement.
Resignation
The employee can resign at any time by providing notice in accordance with their employment agreement.
Legal Notice Period for Resignation
How much notice must be given?
At least 2-weeks during the probation period and 4-weeks after the probation period.
Notice takes effect on the 15th of last day of the calendar month.
How is notice given?
The resignation letter must be signed with wet ink and shared with the employer in accordance with the terms set in the employment agreement.
Severance for Resignation
Is severance required?
No. Employees are entitled to their pay for days worked.
What is the term of final payment?
The date of termination of the employment agreement.
Mutual Termination
In mutual termination, both the employer and employee mutually agree to terminate the employee’s employment for any reason. Mutual terminations will always entail payment of a severance.
Common Reasons for Mutual Termination
- The employment agreement is on definite or fixed-term agreement
- The employee is potentially contentious or litigious
- The employee cannot be terminated with cause or for redundancy or other business reasons
- The employee has negotiated their mutual termination
Legal Notice Period for Mutual Termination
Parties can negotiate the last day of work and any garden leave
Severance for Mutual Termination
Is severance required?
Yes. Severance usually includes payment equivalent to the sum of the notice period as well as an incentive for the mutual agreement.
This incentive is calculated based on length of service, professional level, and an indemnity against allegations of unfair dismissal. The incentive is usually equal to 1.5 months per year of service.
For fixed-term contracts, severance amounts must be at least equal to the employee would have earned from their contract absent the termination.
What is the term of payment?
Severance and final pay must be paid on the date of termination of the employment agreement.
Termination During the Probation Period
The employer cannot terminate the relationship unilaterally during the probation period without expressing a cause. The notice period for termination under probation will be in the employment agreement.
Grounds for Termination During the Probation Period
- Poor performance
- Bad behavior
- Persistent lateness/absence from work
Legal Notice Period for Termination During Probation
How much notice must be given?
Two weeks.
How is notice given?
The notice of termination must be delivered in writing, and signed with wet ink.
The letter may be personally delivered or deposited in the mailbox at their home address. Proof of delivery is required in both cases. If sent by post a registered letter is required.
The employee is not obligated to sign the letter, but if the letter is delivered personally it is normal practice to request a signature.
Severance for Termination During the Probation Period
Is severance required?
No severance is owed to employees who are terminated during the probation period in Germany.
What is the term of payment?
Final pay must be paid on the date of termination of the employment agreement.
India
Terminations in India are complex. There are generally six different compliant ways to terminate an employee in the country:
- Termination with Cause
- Termination due to Poor Performance
- Termination for Redundancy or Business Reasons
- Resignation
- Mutual Termination
- Termination During the Probation Period
Termination with Cause
In India, employees cannot be punished for acts or omissions unless such misconduct is established by the employment agreement and other applicable policies as cause to terminate the employment relationship.
Prior to terminating an employee with cause, a detailed and fair inquiry is required. Employees are entitled to reasonable notice of the allegations against them and are to be provided with an opportunity to be heard in their own defense before an impartial tribunal.
You must inform Deel 30 days prior to terminating an employee with cause, except in cases of properly documented serious misconduct.
Grounds for Termination with Cause
- Inattention or negligence in the performance of duties and obligations
- Repeated failure to comply with lawful directions of the company and its officers
- Breach of the terms of the employment agreement and breach of representations and warranties contained therein
- Unethical business conduct, theft or misappropriation of property, whether tangible or intangible, from the company, co-workers, customers, partners, or others
- Breach of any statutory duty or for any act or omission adversely affecting the goodwill, reputation, credit, operations, or business of the Company or any of its clients, affiliates, vendors, or customers
- Any form of harassment, including but not limited to sexual harassment while employed with the company
- Unauthorized disclosure of any confidential information of the company or any of its clients, affiliates, vendors, or customers
- Committing any act not in conformity with discipline or good behavior or acceptance or offering of illegal gratification
- Habitual, uninformed and unauthorized absence for a period exceeding eight days
- Being convicted of any criminal offense, prior to or in the course of employment with the company
- Failure to maintain or produce proper work authorizations, required licenses, or certificates
- Taking or giving bribes or any illegal gratification, or abetting the same in any form, whatsoever
- Falsifying employment or any other Company records, submitting fraudulent claims
Legal Notice Period for Termination with Cause
How much notice must be given?
No notice is needed if misconduct is proven beyond any doubt.
How is notice given?
The termination letter can be sent by email, and the signature of both parties can be digital/electronic.
Severance for Termination with Cause
Is severance required?
No. The employee is only entitled to their final pay for days worked.
What is the term of payment?
15 days after the termination of the employment agreement.
Termination due to Poor Performance
Employers may terminate an employee for poor performance. The basis for such terminations must be well documented, and the process must follow well established judicial precedents.
Employers must have a clear set of criteria for evaluating performance, and communicate specific instances of poor performance to the employee in writing.
Performance Improvement Plans (PIP) must set clear goals to be achieved within a reasonable time-frame. If despite these measures an employee’s performance fails to improve, an employer may have grounds to terminate the employee.
At each step, it is critical to have documentation that demonstrates the employee was made aware of the issues with their performance, was provided sufficient time and support to improve, and specify in what ways they failed to do so.
Legal Notice Period for Termination due to Poor Performance
How much notice must be given?
No notice is needed if terminating within the first 6 months of employment.
At least 30 days, if terminating after 6 months of employment.
How is notice given?
The termination letter can be sent by email, and the signature of both parties can be digital /electronic.
Severance for Termination due to Poor Performance
Is severance required?
Yes, employees that have completed one year of continuous service - interpreted as 240 working days - are entitled to severance in addition to other statutory payments like pay-in-lieu of notice, leave encashment, and gratuity.
Severance is 15 days average pay for each completed year of continuous service.
Average pay is based on the average of the 3 months prior to termination.
What is the term of payment?
15 days after the termination of the employment agreement.
Termination for Redundancy or Business Reasons
The law expressly establishes the business reasons to terminate an employee. Any termination related to business reasons must be expressly justified to be compliant with the law. It is possible to terminate an employee without a statutory cause.
Employees may be terminated for redundancy arising out of a genuine business reorganization. Employers must ensure that there are justifiable commercial reasons for the restructuring and follow a prescribed process that includes the last-in, first-out (LIFO rule, notification of government authorities, and making relevant payments to the terminated employees.
Grounds for Termination for Redundancy or Business Reasons
- Commercially justified business reasons including company downsizing and restructuring
Legal Notice Period for Termination for Redundancy or Business Reasons
How much notice must be given?
At least 30 days.
How is notice given?
The termination letter can be sent by email, and the signature of both parties can be digital/electronic.
Severance for Termination for Redundancy or Business Reasons
Is severance required?
Yes, employees that have completed one year of continuous service - interpreted as 240 working days - are entitled to severance in addition to other statutory payments like pay-in-lieu of notice, leave encashment, and gratuity.
Severance is 15 days average pay for each completed year of continuous service.
Average pay is based on the average of the 3 months prior to termination.
What is the term of payment?
Severance and final pay must be paid on or before the date of termination of the employment agreement for the termination to be considered valid.
Resignation
The employee can resign at any time by providing notice in accordance with their employment agreement.
Legal Notice Period for Resignation
How much notice must be given?
30 days.
How is notice given?
The resignation letter must be signed with wet ink and shared with the company at least 4 weeks before the employee’s last day.
Severance for Resignation
Is severance required?
No. The employee is only entitled to their final pay for days worked.
What is the term of payment?
Final pay must be paid 15 days after the termination of the employment agreement.
Mutual Termination
In mutual termination, both the employer and employee mutually agree to terminate the employment agreement. Due to the complexity of the termination process in India, mutual terminations are the preferred method for dismissing an employee for business or performance reasons. Mutual termination will always entail the payment of a severance.
Common Reasons for Mutual Termination
- The employee is potentially contentious or litigious
- The employee cannot be terminated with or without cause
- The employee has negotiated their mutual termination with the client
- The process for unilateral terminations is complex, time-consuming, or not feasible
Legal Notice Period for Mutual Termination
How much notice must be given?
30 days. Payment in lieu of notice is permitted.
How is notice given?
The termination letter can be sent by email, and the signature of both parties can be digital/electronic.
Severance for Mutual Termination
Is severance required?
Yes. Based on mutual agreement between the employer and employee. Employers typically offer 1-3 months on top of pay-in-lieu of notice.
What is the term of payment?
15 days after the termination of the employment agreement.
Termination During the Probation Period
Both the employer and the employee can terminate the relationship unilaterally during the probation period. The reasons for termination must be communicated in a termination letter and in person.
Grounds for Termination During the Probation Period
- Poor performance
- Bad behavior
- Persistent lateness/absence from work
Legal Notice Period for Termination During Probation
How much notice must be given?
The probation period varies by industry, company, and position but usually ranges from 6 months to a year. No notice is required to terminate an employee during the first 6 months of employment. After 6 months, at least 30 days notice is required.
How is notice given?
The termination letter can be sent by email, and the signature of both parties can be digital/electronic. In situations where the employee is refusing to sign, the termination will still be valid.
Severance for Termination During the Probation Period
Is severance required?
No. The employee is only entitled to their final pay for days worked.
What is the term of payment?
15 days after the termination of the employment agreement.
Indonesia
Terminations in Indonesia are very complex. There are generally five different compliant methods to terminate an employment agreement in the country:
- Termination with Cause
- Termination for Redundancy or Other Business Reasons
- Resignation
- Mutual Termination
- Termination During the Probation Period
Termination with Cause
The law expressly establishes the causes to terminate an employee. Any termination should be expressly justified to be compliant with the law. It is not possible to terminate an employee without a statutory cause. Deel requires 30 days notice to terminate an employee for cause in Indonesia, except in cases of properly documented gross misconduct.
In cases of gross misconduct, employees may be terminated immediately provided the conduct is in breach of specific provisions of the employment agreement or company policies.
Terminations for poor performance and chronic absenteeism are permitted provided the disciplinary process is followed.
Employees must be provided a written warning that their breach of employment agreement, company policies, poor performance, or chronic absenteeism will result in termination if not corrected.
A process of escalating warning letters is required prior to termination, with 3 letters being the norm unless otherwise provided for in the employment agreement.
Warning letters must detail the misconduct and specify the provisions of the employment agreement or company policy that have been breached. In most cases warning letters expire after six months. Further breaches after six months require initiating a new process of escalating warning letters prior to termination.
Terminations with cause require notification of the relevant Ministry of Manpower office.
Grounds for Termination with Cause
- Repeated minor mistakes including poor performance, breach of company regulations or the employment agreement
- Abscesences of 5 or more days without explanation, or illness or injury of 12 months or longer.
- Gross misconduct including assault, threats, intimation, theft, intoxication or gambling on the job
Legal Notice Period for Termination with Cause
How much notice must be given?
The notice period will depend on the reason for termination:
- Repeated Minor Mistakes: 14 working days
- Absence from Work: 14 working days
- Gross Misconduct: No notice period
How is notice given?
Notice can be personally served to the employee. If the employee refuses to receive the notice, the notice is simultaneously served to the employee via (i) email to the employee’s email address, (ii) registered mail, and (iii) private courier to the employee’s last known address.
Severance for Termination with Cause
Is severance required?
Yes, if the employee has violated the employment agreement or company regulations and has been served a first, second, and third consecutive warning.
Severance is composed of the basic severance payment, a length-of-service award, and compensation for any untaken but not forfeited annual leave. Employees may also be entitled to additional compensation as provided in their employment agreement or company regulations.
For the purposes of calculating severance, an employee’s pay includes both basic wage and any fixed allowances paid to the employee and their family.
Employees who have violated their employment agreement or company regulation and have been served a first, second, and third consecutive warning may only be entitled to 50% of the basic severance.
In some cases where employees are terminated for criminality or unexcused absences, not severance is due.
Basic severance is based on years of service:
- Less than 1 year: 1 month
- 1 year: 2 months
- 2 years: 3 months
- 3 years: 4 months
- 4 years: 5 months
- 5 years: 6 months
- 6 years: 7 months
- 7 years: 8 months
- 8 years: 9 months
Length-of-service award is calculated based on years of service:
- 3 years: 2 months pay
- 6 years: 3 months pay
- 9 years: 4 months pay
- 12 years: 5 months pay
- 15 years: 6 months pay
- 18 years: 7 months pay
- 21 years: 8 months pay
- 24 years or more: 10 months pay
What is the term of payment?
The date of termination of the employment agreement.
Termination for Redundancy or Business Reasons
The law expressly establishes the business reasons to terminate an employee. Any termination related to business reasons must be expressly justified to be compliant with the law. It is not possible to terminate an employee without a statutory cause. Termination for redundancy is allowed.
Termination for redundancy or other business reasons must adhere to a specific legal process that includes written notice to the employee of all the facts and circumstances that led to the termination, as well as notice to the relevant Ministry of Manpower office.
Terminations that result for business reasons other than the partial or complete closure of the business, employers must prove that they have taken measures to avoid redundancies, such as reducing overtime work or cutting the pay of managers and directors. Redundancies are always to be treated as a last resort.
Grounds for Termination for Redundancy or Business Reasons
- Efficiency measures due to losses or to prevent further losses
- Business closure due to losses for two years or other reasons
- Business closure arising from a force majeure event
- A force majeure event affecting the business but not necessitating closure
- Declared bankruptcy
- Processes of suspension of debt payment whether or not arising from losses
Legal Notice Period for Termination for Redundancy or Business Reasons
How much notice must be given?
14 working days.
How is notice given?
Notice can be personally served to the employee. If the employee refuses to receive the notice, the notice should be simultaneously served to the employee via (i) email to the employee’s email address, (ii) registered mail, and (iii) private courier to the employee’s last known address.
Severance for Termination for Redundancy or Business Reasons
Is severance required?
Yes, severance is composed of the basic severance payment, a length-of-service award, and compensation for any untaken but not forfeited annual leave. Employees may also be entitled to additional compensation as provided in their employment agreement or company regulations.
For the purposes of calculating severance, an employee’s pay includes both basic wage and any fixed allowances paid to the employee and their family.
Basic severance may be multiplied by a factor of 0.5x to 2x depending on the facts and circumstances of the redundancy or business reason.
Basic severance is based on years of service:
- Less than 1 year: 1 month
- 1 year: 2 months
- 2 years: 3 months
- 3 years: 4 months
- 4 years: 5 months
- 5 years: 6 months
- 6 years: 7 months
- 7 years: 8 months
- 8 years: 9 months
Length-of-service award is calculated based on 3-year increments of service:
- 3 years: 2 months pay
- 6 years: 3 months pay
- 9 years: 4 months pay
- 12 years: 5 months pay
- 15 years: 6 months pay
- 18 years: 7 months pay
- 21 years: 8 months pay
- 24 years or more: 10 months pay
What is the term of payment?
The date of termination of the employment agreement.
Resignation
The employee can resign at any time by providing notice.
Legal Notice Period for Resignation
How much notice must be given?
30 days.
How is notice given?
The resignation letter must be signed with wet ink.
Severance for Resignation
Is severance required?
There is no severance payment when an employee resigns in Indonesia.
What is the term of payment?
The date of termination of the employment agreement.
Mutual Termination
In mutual termination, both the employer and employee mutually agree to terminate the employee’s employment for any reason. Mutual terminations will always entail a severance.
Common Reasons for Mutual Termination
- The employee is potentially contentious or litigious
- The employee cannot be terminated with or without cause
- The employee has negotiated their mutual termination with the client
Legal Notice Period for Mutual Termination
No notice is needed.
Severance for Mutual Termination
Is severance required?
While no severance is required by law, negotiating a mutual termination agreement will always entail the offer of a severance greater than the amount the employee would otherwise be entitled to by law.
What is the term of payment?
The date of termination of the employment agreement.
Termination During the Probation Period
Both the employer and the employee can terminate the relationship unilaterally during the probation period without expressing a cause. Employers are required to give 7 days notice.
In Indonesia the probation period cannot be extended or repeated.
Fixed-term employees cannot be subject to a probation period.
Grounds for Termination During Probation
- Without cause
- Poor performance
- Bad behavior
- Persistent lateness/absence from work
Legal Notice Period for Termination During Probation
How much notice must be given?
7 working days.
How is notice given?
Notice can be personally served to the employee. If the employee refuses to receive the notice, the notice is simultaneously served to the employee via (i) email to the employee’s email address, (ii) registered mail, and (iii) private courier to the employee’s last known address.
Severance for Termination During Probation
Is severance required?
No severance is owed to employees who are terminated during the probation period in Indonesia.
What is the term of payment?
The date of termination of the employment agreement.
Ireland
Terminations in Ireland can be complex. There are generally five different compliant methods to terminate an employment agreement in the country:
- Termination with Cause
- Termination for Redundancy or Other Business Reasons
- Resignation
- Mutual Termination
- Termination During the Probation Period
Termination with Cause
In Ireland, any termination should be expressly justified to be compliant with the law. It is not possible to terminate an employee without a statutory cause. You must inform Deel 30 days prior to terminating any employee with cause, except in cases of properly documented serious misconduct.
Terminations will be deemed unfair unless they are the result of a fair disciplinary process that includes an investigation, a disciplinary hearing, and a right of appeal. Employees should be made aware of the allegations against them in advance and afforded the right to be represented.
Disciplinary outcomes start with oral and written warnings and escalate to suspension, demotion, and eventually termination.
This process is essential in Ireland, and failure to follow it can result in a claim of unfair termination.
Grounds for Termination with Cause
- Employee Misconduct
- Employee is incapable, incompetence, or unqualified
- Legal prohibition against employing the individual
- Other substantial grounds that justify termination
Legal Notice Period for Termination with Cause
How much notice must be given?
The notice period will depend on the length of the employee’s continuous service:
- 13 weeks: 1 week notice
- 2 years: 2 weeks notice
- 5 years: 4 weeks notice
- 10 years: 6 weeks notice
- 15 or more years: 8 weeks notice
Payment in lieu of notice is permitted. Employees can be dismissed without notice for serious misconduct.
How is notice given?
The termination letter can be sent by email, and the signature of both parties can be digital/electronic.
Severance for Termination with Cause
Is severance required?
Yes. Two weeks of pay for each year of continuous services, plus one additional week of pay.
Each week of pay is capped at €600.
What is the term of payment?
Severance and final pay must be paid on the normal monthly payslip date.
Termination for Redundancy or Business Reasons
The law expressly establishes the business reasons to terminate an employee. Any termination related to business reasons must be expressly justified to be compliant with the law. It is not possible to terminate an employee without a statutory cause. Termination for redundancy is allowed.
Before making an employee redundant, the employer is obligated to offer another job within the organization.
Grounds for Termination for Redundancy or Business Reasons
- Business Reasons including company downsizing, restructuring, economic, technical, or organizational reasons
- Employee redundancy
Legal Notice Period for Termination for Redundancy or Business Reasons
How much notice must be given?
The notice period will depend on the length of the employee’s continuous service.
- 13 weeks: 1 week notice
- 2 years: 2 weeks notice
- 5 years: 4 weeks notice
- 10 years: 6 weeks notice
- 15 or more years: 8 weeks notice
Payment in lieu of notice is permitted.
How is notice given?
The termination letter can be sent by email, and the signature of both parties can be digital/electronic.
Severance for Termination for Redundancy or Business Reasons
Is severance required?
Yes. Two weeks of pay for each year of continuous services, plus one additional week of pay.
Each week of pay is capped at €600.
What is the term of payment?
Severance and final pay must be paid on the normal monthly payslip date.
Resignation
Employees can resign at any time. Employees who have worked for more than 13 weeks are required to give one-week notice.
Legal Notice Period for Resignation
How much notice must be given?
No notice is needed before 13 weeks of employment. After 13 weeks of employment, the employee shall provide one week of notice.
How is notice given?
The resignation letter can be sent by email with digital/electronic signature.
Severance for Resignation
Is severance required?
No severance is owed to employees who resign in Ireland.
What is the term of payment?
Final pay must be paid on the normal monthly payslip date.
Mutual Termination
In mutual termination, both the employer and employee mutually agree to terminate the employee’s employment for any reason. Mutual terminations will always entail a severance.
Common Reasons for Mutual Termination
- The employee is potentially contentious or litigious
- The employee cannot be terminated with or without cause
- The employee has negotiated their mutual termination with the client
- To ensure a smooth and safe termination is in place
Legal Notice Period for Mutual Termination
How much notice must be given?
The notice period will depend on the length of service as follows:
- At least 13 weeks: 1 week notice
- 2 years: 2 weeks notice
- 5 years: 4 weeks notice
- 10 years: 6 weeks notice
- 15 years: 8 weeks notice
Payment in lieu of notice is permitted.
How is notice given?
The termination letter can be sent by email, and the signature of both parties can be digital/electronic.
Severance for Mutual Termination
Is severance required?
Severance will be mutually agreed between the parties but cannot be less than 5 weeks salary plus holidays.
What is the term of payment?
Severance and final pay must be paid on the normal monthly payslip date.
Termination During the Probation Period
Both the employer and the employee can terminate the relationship unilaterally during the probation period without expressing a cause. The notice period for termination under probation will be in the employment agreement.
Grounds for Termination during Probation
- Poor performance
- Bad behavior
- Persistent lateness/absence from work
- Any other reason
Legal Notice Period for Termination During Probation
No notice is required.
Severance for Termination During Probation
Is severance required?
No severance is owed to employees who are terminated during the probation period in Ireland.
What is the term of payment?
Final pay must be paid on the normal monthly payslip date.
Italy
Terminations in Italy can be complex. It is important to advise Deel as soon as possible of your intention to terminate an employee. There are generally five different compliant methods for terminating an employment agreement:
- Termination with Cause
- Termination for Subjective Reasons, Redundancy or Business Reasons
- Resignation
- Mutual Termination
- Termination During the Probationary Period
Termination with Cause
The law expressly establishes the causes to terminate an employee. Any termination should be expressly justified to be compliant with the law. It is not possible to terminate an employee without a statutory cause.
Terminations for cause in Italy must follow a prescribed disciplinary procedure:
- A letter detailing the allegations against the employee, including all known facts underlying the allegation must be sent to the employee.
- The letter must bear a wet ink signature and be delivered by hand or by post.
- The employee has five days to submit a written response to the allegations,
- The employer then has 15 days to dismiss the employee without further notice.
Grounds for Termination with Cause
- Gross misconduct by the employee
- Gross negligence by the employee while performing his/her duties
- Any other reason listed in the disciplinary code
- Any other reason provided by the law as lawful grounds for immediate termination
Legal Notice Period for Termination with Cause
How much notice must be given?
Following the disciplinary procedure, no further notice is required
How is notice for termination with cause delivered?
The termination letter can be sent by email, and the signature of both parties can be digital/electronic.
Severance for Termination with Cause
Is severance required?
Severance (TFR) is always due in any case of termination and is a sum already set aside each month by the Employer.
Upon termination, the employee is also entitled to receive all accrued but unused holidays and paid leaves.
What are the terms of payment of severance or final payment of wages owed to the employee?
45 days after the termination of the employment agreement
Termination for Subjective Reasons, Redundancy, and Other Business Reasons
Subjective reasons include less serious breaches of contractual obligations such as serious underperformance or a failure to comply with job obligations. Terminating an employee for underperformance is extremely difficult as the concept of underperformance does not exist under Italian law. An employee’s only obligation is to perform the job. There is no obligation under law to do it well or drive results for the employer.
Objective reasons include business decisions related to restructuring or reorganization of the company, redundancy, and other economic factors. Employers are required to demonstrate the reasons for the dismissal and that no other suitable positions are available.
Terminating an employee while on sick leave, maternity leave, or in the first year of parenthood is prohibited.
Legal Notice Period for Termination for Subjective Reasons, Redundancy, and Other Business Reasons
How much notice must be given?
Notice is defined by the employment agreement or depends on the employee’s length of service and their level. The Employer may at their sole discretion decide to pay an indemnity in lieu of notice and terminate the employee with immediate effect
How is a notice for Termination delivered?
The termination letter can be sent by email, and the signature of both parties can be digital/electronic
Severance for Termination for Subjective Reasons. Redundancy, and Other Business Reasons
Is severance required?
Severance (TFR) is always due in any case of termination and is a sum already set aside each month by the Employer. Upon termination, the employee is also entitled to receive accrued but untaken holidays and paid leaves.
What is the term for payment of severance or final wages to the employee?
45 days after the termination of the employment agreement.
Resignation
The employee’s signature is required on the resignation letter in order for the resignation to be effective. The employee can resign at any time by providing the required notice. Employers may waive notice at their discretion and permit the employee to resign with immediate effect.
Legal Notice Period for Resignation
How much notice must be given?
The employee must give sufficient notice as defined by the employment agreement or according to the length of their service and level of seniority. The employer may waive this notice.
Are there local requirements or restrictions for resignations?
To be valid, resignations and mutual consent terminations can only be implemented in electronic form provided by Labor Ministry.
Severance for Resignation
Is severance required?
Severance (TFR) is always due in any case of termination and is a sum already set aside each month by the Employer. Upon termination, the employee is also entitled to receive accrued but untaken holidays and paid leaves.
What is the term of final payment?
45 days after the termination of the Employment Agreement
Mutual Termination
This termination requires the employee's agreement and must include a severance above the statutory minimum requirements.
There are no mandatory grounds to make a mutual termination of the employment contract. The parties can agree to terminate employment by giving mutual consent and agreement to the terms of termination.
The most common mutual terminations are for business reasons, including restructuring and downsizing.
Reasons for Mutual Termination
- The employee is potentially contentious or litigious
- The employee cannot be terminated with or without cause
- The employee has negotiated their own mutual termination
Legal Notice Period for Mutual Termination
Generally, the notice period set forth in the employment agreement depends on the length of service and level of the employee.
However, parties may agree to a different notice period. Generally, the employer pays to the employee the equivalent sum of notice and an ex gratia payment as an incentive for the employee to leave
The ex gratia payment is based on the length of service, level of the employee, and indemnity in case of unfair dismissal. Each case must be evaluated based on its own merits by the Deel Legal Team.
Severance for Mutual Termination
Is severance required?
Severance (TFR) is always due in any case of termination and is a sum already set aside each month by the Employer. Upon termination, the employee is also entitled to receive accrued but untaken holidays and paid leaves
Severance is paid in addition to the notice period and the ex gratia payment.
What is the term of payment for severance or final wages to the employee?
45 days after the termination of the employment agreement.
Termination During the Probation Period
An employer may terminate an employee during the probationary period if the employee is found to be unsuitable for the position. While no reason and no notice are required, employers must be able to demonstrate unsuitability in the event of the employee makes a claim against the employer.
Terminations during the probationary period must meet the following conditions:
- The employee must have worked for a reasonable period of time to allow the employer to evaluate their suitability for the role; and
- The duties and responsibilities of the role must be clearly stated in the employment agreement.
Legal Notice Period for Termination During Probation
No notice is required for terminations during the probationary period.
Severance for Termination During the Probation Period
Is severance required?
If the employee worked more than 14 days, Severance (TFR) must be paid.
What is the term of payment for severance or final wages to the employee?
45 days after the termination of the employment agreement.
Mexico
Terminations in Mexico can be complex and there is no at-will termination. Most commonly employees are terminated by executing a mutual termination agreement. There are generally four compliant methods of terminating an employment agreement in Mexico:
- Termination with Cause
- Resignation
- Mutual Termination
- Termination During the Probation Period
There is no termination for redundancy or business reasons in Mexico. Employers must pursue a mutual termination agreement.
Termination with Cause
Mexican law requires that the cause for termination be unquestionably and indisputably proven. The employer must present the employee with a written document (”Acta Administrativa”) describing the conduct or conducts that motivated the dismissal and the date or dates on which they occurred. The employee should acknowledge the misconduct and sign the document, accepting the termination.
If the employee refuses to sign the document the employer must initiate a legal process through the courts. Failure to demonstrate legal grounds for termination is considered an unfair dismissal.
You must notify Deel at least 30 days prior to terminating any employee with cause, except in cases of properly documented gross misconduct.
Grounds for Termination with Cause
- Provide fake/false documents
- Unlawful or dishonest acts against the employer, managers and their families, coworkers, clients, and providers
- Damages
- Harassment, immoral, and inappropriate behaviors/acts
- Disclosure of intellectual property or confidential information
- More than 3 unjustified absences in 30 days
- Defiance
- Non-compliance with internal rules and codes
- Drugs and alcohol use
- Jail
Legal Notice Period for Termination with Cause
No notice period is required.
Severance for Termination with Cause
Is severance required?
No.
What is the term of final payment?
Final payment must be made on the termination date or on the date agreed to in writing with the employee.
Resignation
Employees can resign at any time by providing a signed resignation letter to the employer.
Legal Notice Period for Resignation
No notice period is required.
Severance for Resignation
Is severance required?
No. The employee is only entitled to their final pay for days worked.
What is the term of final payment?
Final payment must be made on the termination date or any other date agreed to in writing with the employee.
Mutual Termination
Termination by mutual agreement is the most common way to terminate an employee in Mexico. In mutual termination, both the employer and employee mutually agree to terminate the employee’s employment for any reason. Mutual terminations will always entail a severance.
Reasons for Mutual Termination
- The employee is potentially contentious or litigious
- The employee cannot be terminated with cause
- The employee has negotiated their mutual termination
Legal Notice Period for Mutual Termination
No notice is required.
Severance for Mutual Termination
Is severance required?
Yes. Mutual termination will always entail a severance payment.
What is the term of payment?
Final payment must be made on the termination date or any other date agreed in writing with the employee.
Termination During the Probation Period
In Mexico, an internal committee evaluates makes the decision about whether an employee passes probation. The committee evaluates the knowledge and ability of the employee to perform the functions of their job. Terminating an employee during the probation period requires a mutual termination agreement, but no severance is owed.
Legal Notice Period for Termination During Probation
No notice is required.
Severance for Termination During the Probation Period
Is severance required?
No. The employee is only entitled to their pay for days worked.
What is the term of payment?
Final pay must be paid on the termination date or any other date agreed in writing with the employee.
Netherlands
Terminations in the Netherlands are complex. As a general rule you cannot unilaterally terminate an employee in the Netherlands without the permission of the Courts or the Dutch Unemployment Agency (UWV). In most cases it is preferable to seek mutual consent to a termination.
If you wish to terminate an employee in the Netherlands it is critical that you contact Deel prior to taking any action.
There are generally five types of termination in the Netherlands:
- Terminations Based on Employee Performance or Behavior
- Terminations Based on Business Reasons
- Resignation
- Mutually Agreed Termination or Settlement
- Termination During the Probationary Period
Termination Based on Employee Performance or Behavior
The law expressly establishes the legal grounds to terminate an employee for performance or behavioral reasons. In the absence of a negotiated or mutually agreed termination, the permission of the Dutch court is required. All terminations should be extensively documented, including performance improvement plans, accommodations and other measures taken to mitigate the need for termination.
In rare cases of fraud, theft, or violence in the workplace it may be possible to terminate an employee with immediate effect. In order to minimize legal risks and liability it is critical that you contact Deel without delay.
Grounds for Seeking Termination Through the Dutch Courts
- Performance issues after having followed an extensive performance improvement plan
- Excessive absence due to illness or disability that result in unacceptable consequences for business operations
- Refusal to perform work (after multiple warnings)
- Misconduct (any serious form of material violation of provisions in the employment agreement, policy, or applicable law)
- Disturbed relationship (substantiated with documentation, with a very high threshold)
Legal Notice Period for Termination Based on Performance or Behavior
It is not possible to unilaterally terminate an employee by providing notice.
Severance for Termination Based on Performance or Behavior
Except in rare cases requiring immediate dismissal (fraud, theft, violence) a statutory severance payment will apply. Additional payment to secure a negotiated settlement absent a court decision will also be required.
Termination Based on Business Reasons
The law expressly establishes the circumstances under which you may terminate an employee for business reasons. In the absence of a negotiated or mutually agreed termination, the permission of the Dutch Unemployment Agency (UWV) is required.
Grounds for Seeking Termination Through the Dutch Unemployment Agency
- Business (economical) reasons (e.g. company downsizing, restructuring, organizational/technological reasons, business closure).
- Business reasons must be substantiated in detail and supported with documents. In case of economical reasons: year reports and financials must be handed over.
Legal Notice Period for Termination for Business Reasons
It is not possible to unilaterally terminate an employee by providing notice.
Severance for Termination for Business Reasons
Employees in the Netherlands are entitled to a statutory transition payment from the start of their employment. Additional payment to secure a negotiated settlement absent a decision from the Dutch Unemployment Agency will also be required.
Resignation
An employee may resign at any time by providing 1 month written notice to the employer (unless a longer notification period has been agreed to by contract). The notice period commences at the end of the month in which notice is given.
An employee may resign during the probation period with immediate effect.
Legal Notice Period for Resignation
Employee must provide 1 month notice or as agreed to by contract.
Severance for Resignation
None.
Mutually Agreed Termination or Settlement
Employers may avoid the formal process of seeking permission from the Courts or the Dutch Unemployment Agency by obtaining the written consent of an employee to a mutually agreed termination. This is the preferred course of action for any employer wishing to terminate an employee. Please be advised that obtaining the consent of the employee will always the payment of severance above statutory minimums.
Legal Notice Period for Mutually Agreed Termination
By agreement with the employee
Severance for Mutually Agreed Termination
By agreement with the employee, but always above statutory minimums.
Termination During the Probation Period
The employer may unilaterally terminate an employee during the probationary period without seeking the permission of the courts of the Dutch Unemployment Office. No legal grounds are required, and the termination takes immediate effect. It is not permissible to terminate an employment for prohibited discriminatory reasons, even during the probationary period.
Legal Notice Period for Termination During Probation
No notice is required.
Severance for Termination During the Probation Period
The payment of statutory severance is required, even for terminations during the probation period. The amount of severance is approximately 1/3 monthly salary per year of service.
New Zealand
Terminations in New Zealand can be complex. There are generally five different compliant methods to terminate an employment agreement in the country:
- Termination with Cause
- Termination for Redundancy or Other Business Reasons
- Resignation
- Mutual Termination
- Termination During the Probation Period
Termination with Cause
New Zealand expressly establishes the causes to terminate an employee, which are based on the wrongful acts or omissions of the employee. Any termination should be expressly justified to be compliant with the law. It is not possible to terminate an employee without a statutory cause. You must inform Deel 30 days prior to terminating any employee with cause, except in cases of properly documented serious misconduct.
Grounds for Termination with Cause
-
Serious Misconduct: an act or omission that deeply impairs or destroys the trust and confidence an employer has placed in the employee. This is more likely if the misconduct has adversely impacted the employee’s ability to perform the job. Employers are required to conduct a fair investigation and initiate a disciplinary process. Employees must be made aware of the allegations against them, including the specific provisions of the employment agreement or company policies that have been breached, and provided an opportunity to respond.
Examples of serious misconduct are violent behavior, bullying, harassment, theft, fraud, behavior that endangers the health and safety of the employee or others, use of illegal drugs at work, and dishonesty.
-
Repeated Misconduct: a series of repeated offenses that do not amount to serious misconduct but are contrary to professional behavior. There is no definite number of times that the employee needs to repeat an offense for it to be considered repeated misconduct, and it may depend on the severity of the offenses. However, the employee must be given sufficient opportunity to improve their behavior.
- Poor Performance: when an employee’s performance has not improved despite repeated attempts at performance management plans, and the employee has been warned that termination was a potential outcome for continued poor performance.
Legal Notice Period for Termination with Cause
How much notice must be given?
There is no legal notice period however disciplinary processes or performance management plans must be implemented.
How is notice given?
A termination letter, signed with wet ink and delivered by post mail. Or the letter may be sent by email and the signature of both parties can be digital/electronic.
Severance for Termination with Cause
Is severance required?
No. The employee is only entitled to their final pay for days worked.
What is the term of payment?
Final pay must be paid on or before the pay day of their final period of employment.
Termination for Redundancy or Other Business Reasons
The law expressly establishes the business reasons to terminate an employee. Any termination related to business reasons must be expressly justified to be compliant with the law. It is not possible to terminate an employee without a statutory cause. Termination for redundancy is allowed. Employers are required to exhaust all redeployment options prior to terminating an employee for redundancy.
If there is no clause in the employment agreement providing a period of notice of redundancy, then reasonable notice must be given.
Grounds for Termination for Redundancy or Other Business Reasons
- Business Reasons, including company downsizing and restructuring
- When an employer reduces its workforce because a position or positions (not the employee) are no longer needed
Legal Notice Period for Termination for Redundancy or Other Business Reasons
How much notice must be given?
As specified in the employment agreement or reasonable notice.
How is notice given?
Written notice signed with wet ink and delivered by post mail. Or the notice letter may be sent by email and the signature of both parties can be digital/electronic.
Severance for Termination for Redundancy or Other Business Reasons
Is severance required?
No. The employee is only entitled to their final pay for days worked.
What is the term of payment?
Final pay must be paid on or before the pay day of their final period of employment.
Resignation
The employee can resign at any time by providing notice in accordance with their employment agreement.
Legal Notice Period for Resignation
How much notice must be given?
Notice is determined by the employment agreement.
How is notice given?
The resignation letter must be signed with wet ink and shared with the company in accordance with the notice period stated in the employment agreement.
Severance for Resignation
Is severance required?
No. The employee is only entitled to their final pay for days worked.
What is the term of payment?
Final pay must be paid on or before the pay day of their final period of employment.
Mutual Termination
In mutual termination, both the employer and employee mutually agree to terminate the employee’s employment for any reason. Mutual terminations will always entail a severance.
Common Reasons for Mutual Termination
- The employee is potentially contentious or litigious
- The employee cannot be terminated with cause or for redundancy or other business reasons
- The employee has negotiated their mutual termination with the client
Legal Notice Period for Mutual Termination
There is no notice period for mutual termination and the terms of the termination will be subject to the mutual agreement of the employee and employer.
Severance for Mutual Termination
Is severance required?
Yes. Mutual termination will always entail a severance.
What is the term of payment?
Severance and final pay must be paid on the payday of the employee’s final pay period.
Termination During the Probation Period
The employer cannot terminate the relationship unilaterally during the probation period without expressing a cause. The notice period for termination under probation will be in the employment agreement.
In New Zealand, only employers with 19 or fewer employees at the start of the day on which the employment agreement is executed may employ a new employee for a trial period of up to 90 days.
Grounds for Termination During the Probation Period
- Poor performance
- Bad behavior
- Persistent lateness/absence from work
Legal Notice Period for Termination During Probation
How much notice must be given?
As determined by the employment agreement.
How is notice given?
Written notice signed with wet ink and delivered by post mail. Or the notice letter may be sent by email and the signature of both parties can be digital/electronic.
Severance for Termination During the Probation Period
Is severance required?
No.
What is the term of payment?
Final pay must be paid on the payday of the employee’s final pay period.
The Philippines
Terminations in the Philippines are complex. There are generally five different compliant methods to terminate an employment agreement in the country:
- Termination with Cause
- Termination for Redundancy or Other Business Reasons
- Resignation
- Mutual Termination
- Termination During the Probation Period
Termination with Cause
The law expressly establishes the causes to terminate an employee. Any termination should be expressly justified to be compliant with the law. It is not possible to terminate an employee without a statutory cause. Clients must inform Deel 30 days prior to terminating an employee with cause.
In the Philippines, terminations with cause are known as “just causes” and are based on the wrongful acts or omissions of the employee.
Before terminating an employee with cause, employers are first required to follow a multi-step disciplinary process. This process includes delivering a First Written Notice/Show Cause Notice to the employee that details the facts and circumstances of the alleged misconduct, the specific company policies or labor code provisions that have been breached, and makes the employee aware that an investigation will be conducted that may lead to their termination.
Employees are entitled to request a hearing and, with the support of a representative, respond to the allegations against them, rebut the evidence submitted to support the allegations, and submit evidence in their own defense.
Following an investigation, a Second Written Notice/Termination Notice must be delivered.
Employers that fail to adhere to the disciplinary process are liable to pay damages to the employee.
Grounds for Termination with Cause
- Serious misconduct that is willful in character and not a mere error in judgment.
- Insubordination or willful disobedience
- Gross and habitual neglect of duties
- Fraud
- Breach of trust or loss of confidence
- Commission of a crime or offense against the person of the employer, the person of the employer’s immediate family family or the person of any duly authorized representative of the employer.
- Analogous causes meaning those that have been expressly specific as analogous under the company’s rules, regulations, or policies.
Legal Notice Period for Termination with Cause
How much notice must be given?
A disciplinary procedure that includes (1) First Written Notice/Show Cause Notice, (2) an investigation, and (3) Second Written Notice/Termination Notice must be followed.
How is notice given?
Show Cause Notice and Termination Notice must be personally served to the employee. If an employee refuses services, notices may be simultaneously served to the employee via email, registered mail, and a private courier to the employee’s last known address.
Severance for Termination with Cause
Is severance required?
There are no statutory requirements for severance for employees terminated with cause. Employees are entitled to receive their standard salary through the disciplinary process, except in cases of imminent threat to the employer or co-worker’s life or property, In such cases, employers may place an employee on unpaid preventative suspension for a period not exceeding 30 days.
What is the term of payment?
Within 30 days from the termination of the employment agreement.
Termination for Redundancy or Other Business Reasons
The law expressly establishes the business reasons to terminate an employee. Any termination related to business reasons must be expressly justified to be compliant with the law. It is not possible to terminate an employee without a statutory cause. Termination for redundancy is allowed, but must be substantiated.
In the Philippines, terminations for redundancy or other business reasons are known as “authorized causes”. These terminations are based on legitimate business reasons without regard to whether or not an employee is at fault.
For terminations for redundancy or other business reasons to be valid the termination must be in good faith and not for the purposes of circumventing an employee’s right to security of tenure. Grounds for termination must be substantiated and there must be fair and reasonable criteria for selecting which employees will be terminated.
Terminations for authorized causes must be filed with the Department of Labor and Employment (DOLE).
Employers that fail to adhere to the required termination process are liable to pay damages to the employee.
Grounds for Termination for Redundancy or Other Business Reasons
- Installation of labor-saving machinery or devices
- Redundancy
- Retrenchment to prevent real or imminent substantial losses
- Closure or cessation of operations
- Incurable employee illness or disease
In the case of illness or disease, the continued employment of the employee must be prohibited by law, or prejudicial to the employee’s health as well as the health of the employee’s co-workers. There must be a certification by a competent health authority that the disease is incurable within a period of 6 months even with proper medical treatment.
Legal Notice Period for Termination for Redundancy or Other Business Reasons
How much notice must be given?
- 30 days written notice to the employee
- 30 days written notice to the Department of Labor and Employment.
For terminations due to disease there is no notice period. However, the employer must comply with the disciplinary process for terminations with cause.
How is notice given?
- The notice must be personally served to the employee. If an employee refuses services, notices may be simultaneously served to the employee via email, registered mail, and a private courier to the employee’s last known address.
- The notice to the Regional Office of the DOLE must be personally filed.
Severance for Termination for Redundancy or Other Business Reasons
Is severance required?
Yes. Severance for terminations for redundancy and other business reasons is based on the authorized cause.
Installation of labor-saving machinery or devices, or redundancy:
- At least one month pay or at least one month pay for every year of service of the employee, whichever is higher.
- A fraction of six months service is considered as one whole year.
Retrenchment to prevents losses, closure, or disease:
- At least one month pay or at least one-half month pay for every year of service of the employee, whichever is higher.
- A fraction of six months service or more is considered as one whole year.
Closure or cessation of operations:
- No severance
Employees are also entitled to receive their salary during the notice period.
Employers that fail to adhere to the required termination process are liable to pay damages to the employee, in addition to any owed severance payment.
What is the term of payment?
Within 30 days from the termination of the employment agreement.
Resignation
Employees may resign at any time by providing at least 30 days written notice. Employers may reduce or waive the required notice period. In addition to a signed, written notice of resignation, a deed of release, waiver, and quitclaim must be signed by the employee and notarized.
Legal Notice Period for Resignation
How much notice must be given, if any?
30 days notice
How is notice given?
- Signed, written notice of resignation
- Signed and notarized deed of release, waiver, and quitclaim
Severance for Resignation
Is severance required?
There are no statutory requirements for severance when an employee resigns. Prior to the effective date of the resignation the employee is entitled to their standard salary.
What is the term of payment?
Within 30 days from the termination of the employment agreement.
Mutual Termination
In mutual termination, both the employer and employee mutually agree to terminate the employee’s employment for any reason. A mutual termination will always entail a severance.
A mutual separation agreement must be executed between the employer and the employee and the employee must submit a deed of release, waiver, and quitclaim signed by the employee and which should, among other things, discharge the employer from all claims, obligations, and causes of action arising from the employee’s employment.
Common Reasons for Mutual Termination
- The employee is potentially contentious or litigious.
- The employee cannot be terminated with cause or for redundancy or other business reasons.
- The employee has negotiated their mutual termination with the client.
Legal Notice Period for Mutual Termination
There is no notice period.
Severance for Mutual Termination
Is severance required?
Yes. In order for a separation agreement or other voluntary agreement to be valid, there must be sufficient and reasonable consideration for such agreement.
Employees are also entitled to their salary prior to the effective date of the termination.
What is the term of payment?
Within 30 days of the termination of the employment agreement.
Termination During the Probation Period
Employers may terminate employees during the probation period if they fail to qualify as a regular employee in accordance with reasonable standards that were made known to the employee at the time of engagement.
Probation periods in the Philippines cannot exceed six months, and any employee who continues to work after the probation period is deemed a regular employee and can no longer be terminated via probation termination.
In order to terminate an employee during the probation period, it must be demonstrated that the employee was informed of their probation status, the length of the probation period, and the standards that would need to be met in order to be regularized as an employee. Employers are further required to demonstrate that such standards were applied to the employee’s performance.
The process for terminating an employee during the probation period must be initiated well in advance of the end of the probation period.
Grounds for Termination During the Probation Period
-
Poor performance
-
Bad behavior
- Persistent lateness/absence from work
Legal Notice Period for Termination During Probation
In the Philippines, the law requires that notice served within a “reasonable time” from the effective date of termination. In practice, such written notice is usually serviced fifteen days prior to the effective date.
Severance for Termination During the Probation Period
Is severance required?
No. Prior to the effective date employee’s are entitled to their standard salary.
What is the term of payment?
Within 30 days of the termination of the employment agreement.
Portugal
Terminations in Portugal can be complex. It is important to advise Deel as soon as possible of your intention to terminate an employee. There are generally five different compliant methods for terminating an employment agreement:
- Termination with Cause
- Termination for Redundancy
- Resignation
- Mutual Termination
- Termination During the Probation Period
Termination with Cause
The client must inform Deel 30 days prior to a Termination with Cause, or as required by local employment law. Exceptions include properly documented gross misconduct.
The law expressly establishes the causes to terminate an employee. Any termination should be expressly justified to be compliant with the law. It is not possible to terminate an employee without a statutory cause.
Clients should inform Deel prior to informing the employee of their termination.
Grounds for Termination with Cause
- Illegitimate disobedience to orders given by a hierarchical superior
- Violation of the rights and guarantees of the company's workers
- Repeated provocation of conflicts with workers of the company
- Repeated lack of interest in the fulfillment, with due diligence, of obligations inherent to the exercise of the position or job to which the employee is assigned
- Injury to the company's serious property interests
- False statements regarding the justification of absences
- Unexcused absences from work that directly cause damage or serious risks to the company, or whose number reaches, in each calendar year, 5 in a row or 10 interpolated, regardless of damage or risk
- Culpable failure to observe safety and health rules at work
- Practice, within the company, of physical violence, injuries, or other offences punishable by law against a company employee, member of the company, their delegates, or representatives
- Kidnapping or, in general, a crime against the freedom of the persons referred to above
- Non-compliance or opposition to compliance with a judicial or administrative decision
- Abnormal reductions in productivity
Legal Notice Period for Termination with Cause
How much notice must be given?
No notice is needed
How is notice for termination with cause delivered?
A decision to terminate for cause must be delivered to the employee in writing
Severance for Termination with Cause
There is no severance payment. But the employer still has to pay the standard wages:
- Proportional salary
- Overdue Vacation and related allowance, if applicable
- Proportional vacation
- Proportion vacation allowance
- Proportional Christmas allowance
- Proportional Hours of professional qualification/training; (maximum of 40hours or proportional to the number of months).
Termination for Redundancy
Termination without cause falls into this category. The law expressly establishes the business reasons to terminate an employee. Any termination for redundancy or business reasons must be expressly justified in accordance with these statutory grounds or reasons in order to be compliant with the law.
Grounds for Termination for Redundancy
- Due to the extinction of the job position
- Due to the employee's unsuitability for the work
Legal Notice Period for Termination for Redundancy
The required notice period is based on the length of an employee's work with the company:
- 15 days, if the length of work is less than 1 year
- 30 days, if the length of work is equal to or more than 1 year and less than 5 years
- 60 days, if the length of work is equal to or more than 5 years and less than 10 years
- 75 days, if the length of work is equal to or more than 10 years
During the legal notice, the employee is entitled to a credit of hours, that is, 2 days off work per week, without prejudice to the salary. The credit of hours can be divided by some or all days of the week, at the initiative of the employee.
If the employer does not give the employee the legal notice, the employer must pay the respective notice period.
Severance for Termination for Redundancy
The employee is entitled to:
- Compensation of 12 or 18 days for each year of work, in the case of an indefinite contract or fixed-term contract, respectively
- Proportional Salary
- Overdue Vacation and related allowance, if applicable
- Proportional Vacation
- Proportional Vacation allowance
- Proportional Christmas allowance
- Proportional Hours of professional qualification/training; (maximum of 40hours or proportional to the number of months)
Resignation
Employees may resign at any time by providing written notice.
Legal Notice Period for Resignation
The amount of notice is based on the length of of employment:
- 30 days notice for employment of up to two years
- 60 days notice for employment of more than two years
Severance for Resignation
There is no severance payment required. The employee is entitled to receive standard wages as follows:
- Proportional Salary
- Overdue Vacation and related allowance, if applicable
- Proportional Vacation
- Proportional Vacation allowance
- Proportional Christmas allowance
- Proportional Hours of professional qualification/training; (maximum of 40hours or proportional to the number of months)
- Discount of indemnification of legal notice, if not worked by the employee
Mutual Termination
This termination requires the employee's agreement and must include a severance above the statutory minimum requirements.
There are no mandatory grounds to make a mutual termination of the employment contract. The parties can agree to terminate employment by giving mutual consent and agreement to the terms of termination.
The most common mutual terminations are for business reasons, including restructuring and downsizing.
Common Reasons for Mutual Termination
- The employee is potentially contentious or litigious
- The employee cannot be terminated with or without cause
- The employee has negotiated their own mutual termination
Legal Notice Period for Mutual Termination
No notice is required except as agreed to by the parties
Severance for Mutual Termination
Severance is determined by the type of employment contract:
- 12 days pay for each year of work for indefinite contracts
- 18 days pay for each year of work for fixed-term contracts
Employees are also entitled to:
- Proportional Salary
- Overdue Vacation and related allowance, if applicable
- Proportional Vacation
- Proportional Vacation allowance
- Proportional Christmas allowance
- Proportional Hours of professional qualification/training; (maximum of 40hours or proportional to the number of months)
Termination During the Probation Period
The employer or the employee may terminate the relationship unilaterally during the probation period without cause.
Grounds for Termination During the Probation Period
- Poor performance
- Bad behaviour
- Persistent lateness or absences
Legal Notice Period for Termination During Probation
The employer must provide notice based on the length of employment with the Company:
- no notice for employment of less than 60 days (unless otherwise agreed to in contract)
- 7 days notice for employment of 60 to 120 days
- 15 days notice for employment of more than 120 days
If the employer does not give the employee the legal notice, the employer must pay the respective notice period.
Severance for Termination During the Probation Period
There is no severance payment. Employees are entitled to the following in proportion to their length of employment:
- Proportional Salary
- Vacation
- Vacation allowance
- Christmas allowance
- Hours of professional qualification/training (maximum of 40hours or proportional to the number of months)
Singapore
Terminations in Singapore are generally not complex. Terminations without cause are permitted strictly in accordance with the terms of the employment agreement. Where the employee is notified of cause or grounds for termination, the burden of proof rests with the employer.
There are six different compliant methods to terminate an employment agreement in the country:
- Termination with Cause
- Terminations for Redundancy and Other Business Reasons
- Terminations without Cause
- Resignation
- Mutual Termination
- Termination During the Probation Period
Termination with Cause
The law expressly establishes the causes to terminate an employee. Any termination should be expressly justified to be compliant with the law. You must inform Deel 30 days prior to terminating an employee with cause, except in cases of properly documented serious misconduct.
Employers are obligated to conduct a fair inquiry into allegations of misconduct, and the burden of demonstrating cause rests with the employer. Termination letters are mandatory. It is crucial that each step of the process as well as any communication with the employee be well documented.
Grounds for Termination with Cause
- Serious performance issues
- Attendance issues
- Theft, including money or property
- Misconduct, meaning any form of material violation of provisions in the employment agreement, policy, or applicable law
- Falsifying Records
- Harassment
- Violence
Legal Notice Period for Termination with Cause
How much notice must be given?
No notice is needed.
How is notice given?
The termination letter can be signed in wet ink or sent by email, and the signature of both parties can be digital/electronic.
Severance for Termination with Cause
Is severance required?
No.
What is the term of payment?
The last day of employment or no later than three working days from the date of dismissal.
Termination for Redundancy or Business Reasons
The law expressly establishes the business reasons to terminate an employee. Any termination related to business reasons must be expressly justified to be compliant with the law. Termination for redundancy is allowed.
Employers going through a retrenchment exercise should submit a notice of retrenchment to the Ministry of Manpower office. For employers with 10 or more employees this notice is mandatory.
Employees with more than 2 years service are eligible for retrenchment benefits. Those with less than 2 years service are frequently granted ex-gratia payments out of goodwill.
Grounds for Termination for Redundancy or Business Reasons
- Business reasons, such as company downsizing, restructuring, etc.
- Cost-cutting
- Redundancy of position
Legal Notice Period for Termination for Redundancy or Business Reasons
How much notice must be given?
As specified in the employment agreement, but it is encouraged to give a longer notice period for redundancy reasons.
How is notice given?
The termination letter can be sign
Severance for Termination for Redundancy or Business Reasons
Is severance required?
No severance is owed to employees who are terminated for Redundancy or other business reasons. The prevailing norm is to pay a retrenchment benefit of two-weeks to one-month salary per year of service.
What is the term of payment?
Severance and final pay must be paid on the last day of employment or at the latest three working days from the date of termination.
Termination without Cause
Employers may terminate an employee without cause in accordance with the termination clause of the employment agreement. A written termination letter is mandatory.
Communicating the grounds or reasons for termination to the employee will place additional obligations on the employer and prevent termination without cause. It is crucial to inform Deel prior to communicating with the employee regarding any possible termination without cause.
Cases of redundancy may be subject to regulatory requirements or investigations and must comply with the notification and severance requirements of termination for redundancy.
Legal Notice Period for Termination without Cause
How much notice must be given?
As specified in the employment agreement
How is notice given?
The termination letter can be signed in wet ink or sent by email, and the signature of both parties can be digital/electronic.
Severance for Termination without Cause
Is severance required?
No severance is owed to employees who are terminated without cause in Singapore. In most cases it may be advisable to offer severance.
What is the term of payment?
Severance and final pay must be paid on the last day of employment or at the latest three working days from the date of termination.
Resignation
The employee can resign at any time by providing written notice in advance in accordance with the employment agreement.
Legal Notice Period for Resignation
How much notice must be given?
As specified in the employment agreement.
How is notice given?
The employee has to send a resignation letter either signed in wet ink or by email with digital/electronic signature.
Severance for Resignation
Is severance required?
No severance is owed to employees who are terminated by resignation in Singapore.
What is the term of payment?
Final pay must be paid on the last day of employment.
Mutual Termination
In mutual termination, both the employer and employee mutually agree to terminate the employee’s employment for any reason. Mutual terminations will always entail a severance.
Terms and the payment of any consideration will be negotiated and agreed to between the parties of the mutual termination agreement.
Common Reasons for Mutual Termination
- The employee is potentially contentious or litigious
- The employee cannot be terminated with or without cause
- The employee has negotiated their mutual termination with the client
Legal Notice Period for Mutual Termination
As agreed in the mutual termination agreement.
Severance for Mutual Termination
Is severance required?
No severance is owed to employees who are terminated by mutual termination in Singapore but this is highly advised.
What is the term of payment?
Severance and final pay must be paid on the last day of employment or at the latest three working days from the date of termination.
Termination During the Probation Period
Both the employer and the employee may unilaterally terminate the employment agreement during the probation period without expressing a cause. The notice period for termination during probation will be in the employment agreement. A termination letter is mandatory.
Employers seeking to terminate an employee immediately without notice during the probation period must comply with the requirements for termination with cause.
Legal Notice Period for Termination During Probation
How much notice must be given?
As specified in the employment agreement.
How is notice given?
The termination letter can be signed in wet ink or sent by email, and the signature of both parties can be digital/electronic.
Severance for Termination During Probation
Is severance required?
No severance is owed to employees who are terminated during the probation period in Singapore.
What is the term of payment?
Final pay must be paid on the last day of employment or at the latest three working days from the date of termination.
Spain
Terminations in Spain can be complex. It is important to advise Deel as soon as possible of your intention to terminate an employee. There are generally five different compliant methods for terminating an employment agreement:
- Termination with Cause
- Termination for Redundancy
- Resignation
- Mutual Termination
- Termination During the Probation Period
Termination with Cause
The client must inform Deel 30 days prior to a Termination with Cause, or as required by local employment law. Exceptions include properly documented gross misconduct.
The law expressly establishes the causes to terminate an employee. Any termination should be expressly justified to be compliant with the law. It is not possible to terminate an employee without a statutory cause.
Clients should inform Deel prior to informing the employee of their termination.
Grounds for Termination with Cause
- Repeated and unjustified lack of attendance of punctuality to work
- Indiscipline or disobedience at work
- Verbal or physical offences against the employer, coworkers, or any family member living with them
- Transgression of good faith as well as the abuse of trust in the performance of work
- Habitual drunkenness or drug addiction if they have a negative impact on work
- Harassment based on racial or ethnic origin, religion or beliefs, disability, age, or sexual orientation, and sexual harassment or harassment based on sex against the employer or any other employee.
Legal Notice Period for Termination with Cause
How much notice must be given?
No notice is needed
How is notice for termination with cause delivered?
The termination letter can be sent by email, and the signature of both parties can be digital/electronic.
Severance for Termination with Cause
Is severance required?
In Spain no severance is owed to employees who are terminated with cause as it is a disciplinary dismissal.
What are the terms of payment of severance or wages owed to the employee?
On the employee's last working day.
Termination for Redundancy or Business Reasons
Termination without cause falls into this category. The law expressly establishes the business reasons to terminate an employee. Any termination for redundancy or business reasons must be expressly justified in accordance with these statutory grounds or reasons in order to be compliant with the law. Written communication of the duly detailed reasons for the termination must be sent to the employee.
Grounds for Termination for Redundancy or Business Reasons
- Business reasons, including company downsizing and restructuring
- Performance issues
- Technical reasons
- Organizational reasons
- Production reasons
- Economic reasons
- Employee's inability to adapt to a technical change.
Legal Notice Period for Termination for Redundancy or Business Reasons
How much notice must be given?
15 days
How is notice for Termination for Redundancy delivered?
The termination letter can be sent by email, and the signature of both parties can be digital/electronic.
Severance for Termination for Redundancy or Business Reasons
Is severance required?
Severance of no less than 20 days of salary for each year of completed service
What are the terms of payment?
On the last working day of the Employee
Resignation
The employee's signature is required on a resignation letter in order for resignation to be effective. The employe can resign at any time by providing 15 days notice.
Legal Notice Period for Resignation
How much notice must be given?
The employee must provide 15 days notice.
Are there local requirements or restrictions?
A signed resignation letter must be delivered to the company at least 15 days prior to the employee's last day.
Severance for Resignation
Is severance required?
No severance is owed to employees who resign in Spain.
What is the term of final payment?
On the last working day of the employee.
Mutual Termination
This termination requires the employee's agreement and must include a severance above the statutory minimum requirements.
There are no mandatory grounds to make a mutual termination of the employment contract. The parties can agree to terminate employment by giving mutual consent and agreement to the terms of termination.
The most common mutual terminations are for business reasons, including restructuring and downsizing.
Common Reasons for Mutual Termination
- The employee is potentially contentious or litigious
- The employee cannot be terminated with or without cause
- The employee has negotiated their own mutual termination
Legal Notice Period for Mutual Termination
No notice is required except as agreed to by the parties
Severance for Mutual Termination
Is severance required?
Severance is always required for mutual terminations. The amount is determined by mutual agreement. While the law does not establish the amount of severance required, we suggest that this amount should be at least 33 days of salary for each year of service.
What is the term of final payment?
On the last working day of the employee.
Termination During the Probation Period
The employer or the employee may terminate the relationship unilaterally during the probation period without cause. The notice period for termination during the probation period will be included in the employment agreement as established by local law.
Grounds for Termination During the Probation Period
No reasons or grounds are required
Legal Notice Period for Termination During Probation
No notice is required.
Severance for Termination During the Probation Period
Is severance required?
No severance is owed to employees who are terminated during the probation period.
What is the term of final payment?
On the last working day of the Employee.
Switzerland
Terminations in Switzerland are not complex. Freedom to terminate is an important principle in Swiss labor law. Termination without cause is possible, subject to certain limits. In all cases, the canton must be notified. There are generally five different compliance methods to terminate an employment agreement in Switzerland:
- Termination with Cause
- Termination without Cause
- Resignation
- Mutual Termination
- Termination During the Probation Period
Please note that due to the Deel EOR employment relationship in Switzerland, terminations for business reasons and redundancy require a negotiated mutual termination agreement with employees.
Termination with Cause
In Switzerland, terminations with cause include immediate terminations and are permissible only with just cause. A person giving notice of termination in good faith to an employee cannot be required to continue an employment relationship where just cause for immediate termination exists. You must provide Deel with 30 days notice for termination with cause except in cases of properly documented gross misconduct.
While no formal disciplinary process is required by law, immediate terminations are only effective when the letter of termination has been received by the employee. It is therefore essential to ensure that such terminations are properly documented and noticed.
Less serious breaches of duty by the employee can only be grounds for immediate termination subsequent to a warning that such a termination will take place if the breach is repeated. The particular circumstances of the case are always decisive.
Grounds for Termination with Cause
Serious breaches of duty by the employee that justify immediate termination without warning:
- Offenses, including sexual harassment, in the workplace
- Repeated or general refusal to work
- Competing activity
- Disclosure of business secrets
- Acceptance of bribes
Less serious breaches of duty that justify immediate termination after a warning:
- Late arrivals at the workplace
- One absence from the workplace without a valid reason
- Excessive use of the telephone or internet at the workplace
- Failure to comply with the employer's instructions
Legal Notice Period for Termination with Cause
How much notice must be given?
No notice is needed. The employment relationship ends immediately.
How is notice given?
Registered letter sent by post mail.
Severance for Termination with Cause
Is severance required?
No severance is owed to employees who are terminated with cause in Switzerland. The employee is only entitled to payment of wages related to the work already performed.
What is the term of payment?
On the last day of the month in which employment ends
Termination without Cause
Freedom to terminate is an important principle of Swiss labor law and employers are generally permitted to terminate an employee without cause, subject to certain limits.
Terminations may not be unfair or retaliatory. Employees are entitled to request the reasons for their termination in writing. Failure to provide written reasons will result in the termination being deemed unfair. Employees who are unfairly may seek damages.
Unfair and Impermissible Grounds for Termination without Cause
- A reason inherent in the personality of the other party, unless this reason is related to the employment relationship or is in some essential respect seriously prejudicial to the work in the company (Art. 336 (1) (a) CO)
- The exercise of a constitutional right by the other party, unless the exercise of this right violates an obligation arising from the employment contract or in essential respect causes serious harm to the work in the company (Art. 336 (1) (b) CO)
- A desire to prevent legal claims of the other party arising from the employment contract (Art. 336 para. 1 let. c CO)
- The other party asserting claims arising from the employment contract in good faith (Art. 336 (1) (d) CO). This reason is also referred to as "retaliatory leave"
- The other party performing compulsory military, civil defense service, or civilian service under federal law, or because they are fulfilling a legal obligation without having requested to do so (Art. 336 (1) (e) CO)
- The employee's membership or non-membership of a workers' organization or because of the exercise of trade union activity in accordance with the law (Art. 336 (2) (a) CO)
- The employee being an elected representative of the workers and a member of a works council or an institution linked to the company and the employer cannot prove that he had a justified reason for termination (Art. 336 (2) (b) CO)
- Not complying with the consultation procedure provided for collective dismissals (Art. 336(2)(c) CO)
In addition, according to Art. 10 of the Equality Act, termination of employment by the employer is voidable in court if it is not based on a justified reason and if it follows a complaint to a superior or another competent body within the company, the initiation of conciliation proceedings or the filing of a lawsuit. However, the employee may also waive his or her right to retain his or her job and demand compensation.
Legal Notice Period for Termination without Cause
How much notice must be given?
Notice is tied to years of service, and always effective from the last day of the month in which it is given.
- Up to two years: one month notice
- Two to nine years: two months notice
- More than nine years: three months notice
How is notice given?
Registered letter sent by post mail.
Severance for Termination without Cause
Is severance required?
No severance is owed to employees who are terminated without cause in Switzerland. The employee is only entitled to payment of wages related to the work already performed.
What is the term of payment?
On the last day of the contract, which will always be the last day of the month in which notice ends.
Resignation
The employee can resign at any time by providing notice.
Legal Notice Period for Resignation
How much notice must be given?
Up to one year of service: one month notice
One to nine years of service: two months notice
More than nine years of service: three months notice
How is notice given?
The resignation letter must be signed with wet ink.
Severance for Resignation
Is severance required?
There is no severance payment when an employee resigns in Switzerland.
What is the term of payment?
On the last day of the month in which employment ends
Mutual Termination
An employment relationship can be terminated at any time by mutual agreement, without the need to respect specific deadlines and dates. However, such termination agreements may also be considered invalid if they aim to circumvent mandatory protection provisions. Mutual terminations will always entail a severance.
Common Reasons for Mutual Termination
- The employee is potentially contentious or litigious
- The employee cannot be terminated with or without cause
- The employee has negotiated their mutual termination with the client
Legal Notice Period for Mutual Termination
No notice is needed.
Severance for Mutual Termination
While no severance is required by law, negotiating a mutual termination agreement will always entail the offer of a severance package.
What is the term of payment?
The date of termination of the employment agreement.
Termination During the Probation Period
Both the employer and the employee can terminate the relationship unilaterally during the probation period without expressing a cause. The notice period for termination under probation will be in the employment agreement.
Legal Notice Period for Termination During Probation
How much notice must be given?
7 calendar days.
How is notice given?
Registered letter sent by post mail.
Severance for Termination During Probation
Is severance required?
No severance is owed to employees who are terminated during the probation period in Switzerland.
What is the term of payment?
On the last day of the contract, which will always be the last day of the month in which notice ends.
Israel
There are generally five different compliant methods to terminate an employment agreement in the country:
- Termination with Cause
- Termination for Redundancy or Other Business Reasons
- Resignation
- Mutual Termination
- Termination During the Probation Period
Termination with Cause
Any rational reason may be the basis for termination provided that a fair process has been following in accordance with procedural requirements. Employees may claim unlawful dismissal on the grounds of discrimination, breach of the employers' good faith obligation, or failure to comply with the procedural requirements for termination.
Employees are entitled to a hearing. Notice of a hearing must disclose the reason for the hearing and provide employee's sufficient time to prepare argument in their own defence. Employees are entitled to be represented. Hearings must be conducted in good faith by a supervisor who is empowered to make decisions about termination. Decisions about termination must be considered and cannot be rendered immediately.
For the purposes of determining entitlement to severance payments in this section, some employees who resign are deemed to have been dismissed. These circumstances related to illness, military service, or where a fixed term contract is not renewed.
Grounds for Termination with Cause
For indefinite contracts, any valid reason can be ground for termination, including but not limited to:
- Poor performance
- Attendance issues
- Stealing company money or property
- Misconduct including any form of material violation of provisions in the employment agreement, policy, or applicable law
- Falsifying records
- Harassment
- Violence
Prohibited Grounds for Termination
- Discriminatory reasons including pregnancy, race, sex, age, nationality, disability, military reserve duty
- Where the employee has filed a complaint with a legal authority against their employer or an employee of the employer concerning violations of a law at the workplace
- Reasons specified in a collective agreement, employment contract or case law
It is also prohibited to dismiss an employee for any reason in the following periods except in exceptional cases with the permission of the Minister of Industry, Trade and Labour:
- When employees are expecting to adopt children, become foster parents or become parents with the assistance of surrogacy
- When the employee is undergoing fertility treatments
- When the employee is on birth and parenting leave and for 60 days after the end of the birth and parenting leave
- When the employee is on sick leave
- When the employee is absent from work according to instructions of security forces during an attack or other national emergency
Legal Notice Period for Termination with Cause
How much notice must be given?
For indefinite contracts, the notice period for full-time employees is as follows:
- During 1st year of employment: 1 day for each month during the first 6 months of employment and an additional 2.5 days for every additional month thereafter
- Following completion of at least 1 entire year of employment on a full-time basis: 30 days
Parties can agree on a longer notice period. The length of the notice period will be less for employees paid on an hourly basis. Most employment agreements include a 30 day contractual notice period.
How is notice given?
In writing.
Severance for Termination with Cause
Is severance required?
Employees who have been continuously employed for one year are entitle to severance at the rate of one month's wage per year of employment.
What is the term of payment?
On the date of termination.
Termination for Redundancy or Other Business Reasons
Israeli law requires an employer to inform and consult employees with respect to redundancies. However, the law does not specify the form, timing, or content of these obligations.
There is a general duty to carry out consultation in good faith before any final decisions are made. Employees should be provided with relevant information regarding the anticipated dismissals, such as information regarding the financial situation of the employer if the redundancies are drive by lack of profit.
In practice the obligation to inform and consult employees is only practical when an employee representative body exists and can therefore be consulted.
The obligation to inform and consult employees does not detract from an employer’s general obligations with respect to the termination of employment, including holding personal hearings with each employee. Thus, employees whose contracts are terminated by reason of redundancy have the same personal rights as any other employee who is terminated.
Grounds for Termination for Redundancy or Other Business Reasons
- Company downsizing
- Restructuring
- Other reasons related to the business
Legal Notice Period for Termination for Redundancy or Other Business Reasons
How much notice must be given?
For indefinite contracts, the notice period for full-time employees is as follows:
- During 1st year of employment: 1 day for each month during the first 6 months of employment and an additional 2.5 days for every additional month thereafter
- Following completion of at least 1 entire year of employment on a full-time basis: 30 days
Parties can agree on a longer notice period. The length of the notice period will be less for employees paid on an hourly basis. Most employment agreements include a 30 day contractual notice period.
How is notice given?
In writing.
Severance for Termination for Redundancy or Other Business Reasons
Is severance required?
Employees who have been continuously employed for one year are entitle to severance at the rate of one month's wage per year of employment.
What is the term of payment?
On the date of termination.
Resignation
Employee's have the right to unilaterally end the employment agreement. Employees must give one month's notice and continue to work during the notice period. Violation of this obligation entitles the employer to pursue damages against the employee equal to one month's salary. The employee's signature is required on the letter of resigation.
In some circumstances, employees who resign are entitled to severance as though they had been dismissed.
Grounds for Resignation that are Deemed Dismissal for Severance Purposes
Employees who resign for the following reasons are entitled to severance.
- where an employee resigns due to ill health or the ill health of a family member;
- where a parent resigns within nine months of the birth of a child or adoption of a child under 13 years of age to care for the child;
- where an employee resigns in order to transfer his/her residence after marriage or to work in an agricultural settlement or a settlement in a development area;
- where a fixed-term contract is not renewed by the employer;
- where an employee resigns due to a deterioration in his/her conditions of work or for other labour-relations related issues;
- where an employee resigns to take up national, civil or military service or the Israel Police or the Israel Prison Service;
- where an employee resigns because he/she has been elected head or deputy head of a local authority; and
- if a female employee resigns due to a stay at a shelter for battered women which was approved by welfare services.
Legal Notice Period for Resignation
How much notice must be given?
1 month.
How must notice be given?
Notice must be shared with the company at least one month prior to the employee’s last day. The resignation letter must be signed.
Severance for Resignation
Is severance required?
Generally employees who resign are not entitled to severance. An employee who has been continuously employed for one year and who resigns for reasons that are deemed dismissal is entitled to severance at the rate of one month's wage per year of employment.
What is the term of payment?
On the date of termination.
Mutual Termination
The parties can agree to terminate their employment relationship by giving their mutual consent and agreeing on the terms of the termination. A mutually negotiated termination will always entail the payment of a severance above the statutory requirements.
Common Reasons for Mutual Termination
- The employee is potentially contentious or litigious
- The Employee cannot be terminated with or without cause
- The employee has negotiated their mutual termination with the client
Legal Notice Period for Mutual Termination
Parties may agree on the date of termination.
Severance for Mutual Termination
Is severance required?
Parties can negotiate and agree on an amount. The rate of severance pay is usually a month’s wages per year of employment.
What is the term of payment?
On the date of termination of the Employment Agreement.
Termination During the Probation Period
Terminations during the probation period must be fair and based on reasonable and rational grounds.
Grounds for Termination During Probation
- Poor performance
- Bad behavior
- Persistent lateness/absence from w
Legal Notice Period for Termination During Probation
The minimum statutory written prior notice for a full-time employee is one day for each month during the first six months of employment, and two-and-a-half days for every additional month. An employee who has worked for a year or more is entitled to one month's notice.
Severance for Termination During Probation
No severance is due for an employee terminated during the probation period.
Belarus
Terminations in Belarus can be complex. In Belarus, the matters of termination of labor relations are primarily regulated by the Labor Code of the Republic of Belarus (LCRB). There are generally five different compliant methods to terminate an employment agreement in the country:
- Termination with Cause
- Termination for Redundancy or Other Business Reasons
- Resignation
- Mutual Termination
- Termination During the Probation Period
Termination with Cause
The law expressly establishes the causes to terminate an employee. Any termination should be expressly justified to be compliant with the law. It is not possible to terminate an employee without a statutory cause.
Grounds for Termination with Cause
- Non-fulfillment without valid reasons of labor duties by an employee who has an unremoved (outdated) disciplinary sanction (art. 42-6 LCRB);
- A single gross violation (recognized as such in accordance with legislative acts) of labor duties by an employee (art. 42-7 LCRB). Examples of a gross violation would be; appearing at work intoxicated, consuming alcoholic, narcotics, or psychotropic substances during working hours or in the workplace, theft of the employer’s property, infractions of technical, procedural or work discipline causing damage to the organization, or infractions of the requirements for occupational safety and health causing injury to or death of other employees;
- Inflicting damage to third parties by an employee as established by a court decision (art. 42-8 LCRB)
Legal Notice for Terminations with Cause
How much notice must be given?
No minimal notice is established, but preconditions may apply depending on specific grounds for termination. Please contact Deel.
How is a notice for termination with cause delivered?
In Belarus, there is no separate notice for termination on the mentioned grounds stipulated. An internal order on the termination must be issued and presented to the employee no later than 5 days after the order was issued. The order must be signed with wet-ink and delivered in person.
If the employee refuses to sign the order and act on the refusal must be drafted in the presence of two witnesses who must sign the act.
Severance for Termination with Cause
Is severance required?
No severance is owed to employees who are terminated with cause in Belarus.
In case of termination by the employee for the violation of the labor law or the labor contract by the employer at least 2 weeks of the average wage of severance is due.
What is the term of payment?
When applicable, severance must be paid on the last date of termination of the Employment Agreement.
Termination for Redundancy or Other Business Reasons
Termination without cause falls under this category. The law expressly establishes the business reasons to terminate an employee. Any termination related to business reasons must be expressly justified to be compliant with the law. It is not possible to terminate an employee without a statutory cause. Termination for redundancy is allowed.
Grounds for Termination for Redundancy or Other Business Reasons
- The mismatch between the employee qualification and the position (art. 42-4 LCRB);
- The general state of an employee’s health that prevents them from operating in the given position (art. 42-3 LCRB);
- Absence from work for more than 4 consecutive months due to temporary disability (art. 42-5 LCRB);
- Business Reasons (Eg. company downsizing, restructuring) (art. 42-1 LCRB)
Legal Notice for Termination for Redundancy or Other Business Reasons
How much notice must be given?
At least 2 months.
How is a notice for Termination for Redundancy delivered?
In Belarus, there is no separate notice for termination on the mentioned grounds stipulated. An internal order on the termination must be issued and presented to the employee no later than 5 days after the order was issued. The order must be signed with wet-ink and delivered in person.
Severance for Termination for Redundancy or Other Business Reasons
Is severance required?
The amount of severance depends on the specific reasons:
- At least 2 weeks of average wage in cases of termination due to:
- Refusal to continue work due to substantial change in employment terms, the change of employer, or to relocate following the change in employer location.
- Employee mismatch for the position due to health conditions or inadequate education or qualification.
- Restoration at work of the previous employee occupying the same position
- Military conscription of the employee
- At least 3 months of average wage in cases of termination due to:
- Liquidation of the organization or its unit
- Downsizing of the personnel (redundancy)
What is the term of payment?
On the date of termination of the Employment Agreement.
Resignation
Resignation requirements in Belarus depend on the term of the employment contract.
Employees on an indefinite (not fixed-term or seasonal) employment contract may resign at any time by providing 30 days notice. The employee's signature is required on the resignation letter.
Employees on fixed-term or seasonable contracts may only resign unilaterally based on grounds specified in legislation.
Resignation for Employees on Fixed-Term or Seasonal Contracts
Employees on fixed-term or seasonal contracts may only resign unilaterally based on the following grounds specified in legislation:
- Disability
- Illness preventing the work performance in the given function
- Military conscription
- Gross violation of the labor law by the employer
In the aforementioned cases, no notice period is required. Employees may initiate the resignation by addressing a written application to the named Company Director, including the following details:
- Full details of the company (full name, address)
- Full name of the recipient (the director)
- The details of the applicant: full name, position, structural department.
- Expressed intention to terminate the contract on own initiative
- The exact desired date of the end of the contract (not earlier than within the minimal notice period)
An internal order on the termination is issued based on the application, and must then be countersigned in wet-ink by the employee.
Resignation for Employees on Indefinite Contracts
Employees on an indefinite contract may resign by providing 30 days notice. Employees may initiate the resignation by addressing a written application to the named Company Director, including the following details:
- Full details of the company (full name, address)
- Full name of the recipient (the director)
- The details of the applicant: full name, position, structural department.
- Expressed intention to terminate the contract on own initiative
- The exact desired date of the end of the contract (not earlier than within the minimal notice period)
An internal order on the termination is issued based on the application, and must then be countersigned in wet-ink by the employee.
Legal Notice Period for Resignation
Employees on indefinite contracts may resign with 30 days notice
Employees on fixed-term or seasonal contracts may only resign on legislated grounds. No notice is required.
Severance for Resignation
Is severance required?
No severance is owed to employees who are terminated by resignation in Belarus.
What is the term of payment?
If applicable, on the last date of termination of the Employment Agreement.
Mutual Termination
This termination requires the employee's sign-off and must entail severance above statutory requirements.
There are no mandatory grounds to make a mutual termination of the employment contract. The parties can agree to terminate their employment relationship by giving their mutual consent and agreeing on the terms of the termination.
Either the employee or the employer may initiate mutual termination. While in Belarus the law does not require a specific form to express such initiative, it is highly recommended to do so in writing (an application by an employee or a proposal by an employer).
Common Reasons for Mutual Termination
- The employee is potentially contentious or litigious
- The Employee cannot be terminated with or without cause
- The employee has negotiated their mutual termination with the client
Legal Notice Period for Mutual Termination
No notice is required
Severance for Mutual Termination
Is severance required?
Mutual termination will always entail the payment of a severance. The amount offered will depend on the circumstances but should be at comparable to the amount offered in Termination for Redundancy.
What is the term of payment?
On the last day of the Employment Agreement.
Termination During Probation
Only the employee can terminate the relationship unilaterally during the probation period without expressing a cause.
Employers must indicate a cause consistent with the purpose of probation.
Grounds for Termination During Probation
- Poor performance
- Bad behavior
- Persistent lateness/absence from work (with disciplinary action taken and properly recorded after the first instance).
- A mismatch between the employee experience/qualification and the position requirements.
Legal Notice Period for Termination During Probation
How much notice must be given?
At least 3 days notice in advance is needed.
How should notice be given?
Notice must be delivered to the employee for signature or sent to the employee via registered mail.
Severance for Termination During Probation
No severance is owed to employees terminated during the probation period.