In this guide, you'll find information on the ways to terminate an Employment Agreement compliantly in each country and territory where Deel operates.
For information on how to begin the termination process, please refer to How to terminate an EOR employee.
Frequently Asked Questions
[ACCORDION] Do I need to notify Deel in advance before carrying out a termination?
Yes, Deel requires at least 30 days' notice to initiate termination. This 30-day period does not include any statutory or contractual notice period to which the employee may be entitled. Deel may modify your termination request, including the target contract end date, to ensure compliance with all local laws.
In cases of gross misconduct as defined by law, it may be possible to end a contract earlier. Please provide us with as much information as possible when making your request.
[ACCORDION] How does Deel handle terminations?
Terminations are complex legal processes. Many countries and territories have significant legal requirements that must be met before an employee can be terminated. If not handled properly, terminated employees are also often able to make legal claims against companies.
As such, terminations are handled on a case-by-case basis by Deel’s Legal Group.
[ACCORDION] Are there any best practices for terminations?
To reduce the risk of costly lawsuits and legal claims from the terminated employee, both parties should agree on a termination settlement that includes:
- Severance payment based on the country's termination laws
- Additional severance payment based on local best practices, if any
- A full waiver and release from any potential further claims
[ACCORDION] Is an employee entitled to any severance payment upon termination?
The reason for terminating an employee doesn't necessarily have any bearing on the termination method or amount of severance that the employee is entitled to. This depends on the country or territory of the employee's EOR. Please refer to the termination country guide for more information.
[/ACCORDION]
Termination Country Guide
Can't find a country or looking for more information? Please contact your Account Manager.
[DROPDOWN] Please select a country
[DROPDOWN-OPTION] Armenia
Armenia
❗High Complexity | Inform Deel at least 30 days before initiating any termination. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss an employee immediately without notice due to performance, inability to work, or serious misconduct. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period | No legal requirements |
Severance | No legal requirements |
Final payment due | On date of termination of Employment Agreement |
How to notify employee |
|
[ACCORDION] Termination due to Redundancy or Other Business Reasons
What is it | Allows employer to terminate an employee due to redundancy or other business reasons. |
---|---|
Grounds | Business reasons (e.g. downsizing, restructuring) |
Compliance requirements |
|
Legal notice period |
Yes required, based on the length of the employee's service:
|
Severance | Yes, required. At least 1 month's average salary for each year of employment, up to a maximum of 6 months' salary. |
Final payment due | On the date of termination of the Employment Agreement |
How to notify employee | Written notice signed in wet ink |
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Grounds | No legal requirements |
Compliance requirements |
|
Legal notice period |
Generally, at least 14 days' notice. However, only at least 5 days' notice is required if employee is resigning due to:
|
Severance | No legal requirements |
Final payment due | On date of termination of Employment Agreement |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate their employment relationship for any reason. |
---|---|
Common reasons |
|
Legal notice period | As mutually agreed |
Severance | Yes, required. Amount must be higher than what is legally required for the mutual termination agreement to be compliant. |
Final payment due | On date of termination of Employment Agreement |
[ACCORDION] Termination During Probation Period
What is it | Allows employer or employee to terminate their employment relationship at any time during the probation period. |
---|---|
Grounds |
No legal requirements, however, some possible reasons include poor performance, bad behavior, persistent lateness/absence from work. |
Compliance requirements | No legal requirements |
Legal notice period | As stated in Employment Agreement (i.e. 3 days). |
Severance | No legal requirements |
Final payment due | On date of termination of Employment Agreement |
How to notify employee | No legal requirements |
[/ACCORDION]
[DROPDOWN-OPTION] Australia
Australia
Terminations in Australia are highly complex with a high degree of litigation risk. It is common in Australia for final payments to include a severance above the statutory minimums in exchange for a waiver of liability.
Please note that employees in Australia have the same legal protections during and after probation. As such, it is essential for you to inform Deel as soon as possible if you intend to terminate an employee in Australia, irrespective of whether they are on probation or have completed it.
Given the complexity of processing terminations in Australia, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period:
Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: Per legal requirements. Payment in lieu: Customary. Garden leave: Customary. |
Severance | Required if termination is due to redundancy or business reasons. Between 4 weeks’ to 12 weeks’ pay based on the employee's years of service. | Usually an amount higher than statutory requirements in exchange for a waiver of future claims. |
Benefits | Must be provided through the notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers must follow specific procedural requirements that involve complex and time-consuming processes. As such, Deel needs to be actively involved throughout the disciplinary process. If there is a need to initiate any disciplinary process, please get in touch with us immediately so we can ensure everything is handled correctly. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss employee immediately and without notice due to deliberate misconduct. |
---|---|
Known locally as | Summary Dismissal |
Grounds |
|
Compliance requirements |
|
Legal notice period |
Not required |
Severance |
Not required |
Final payment due |
Within 7 days after termination |
How to notify employee |
|
[ACCORDION] Termination for Redundancy or Other Business Reasons
What is it | Allows employer to terminate an employee when their functions, duties and responsibilities no longer exist due to changes to the business operations. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period |
Depends on employee's years of continuous service and their age.
In addition, employees aged 45 and above with ≥ 2 years of continuous service are entitled to another 1 week's notice. *For fixed-term employees, no notice period is required. |
Payment in lieu of notice period |
Allowed |
Severance |
Depends on the employee’s years of service. Subject to modern award, if any.
*For fixed-term employees, their severance entitlement is their remaining contract term. |
Other payment entitlements |
|
Final payment due | Within seven days after termination |
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time by delivering a signed letter of resignation. |
---|---|
Compliance requirements | Must be signed with wet ink. |
Legal notice period | As stated in Employment Agreement. |
Payment in lieu of notice period | As stated in Employment Agreement. |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate the employee’s employment for any reason. |
---|---|
Common reasons |
|
Legal notice period | Not required |
Severance | Required; both parties must agree on amount |
Final payment due | Within 7 days after termination |
[ACCORDION] Termination During Probation Period
What is it | Allows employer to terminate an employee during the probation period. |
---|---|
Grounds |
|
Legal notice period |
At least 1 week's notice* *Not required for fixed-term employees. |
Payment in lieu of notice period | Allowed. Payment must be at least the amount that the employee would have earned if employment continued until the end of the probation period. |
Severance | Not required |
Final payment due | Within 7 days after termination |
How to notify employee | A written notice specifying the notice period or payment in lieu of notice, as well as the last date of employment. |
[/ACCORDION]
[DROPDOWN-OPTION] Austria
Austria
Terminations in Austria are moderately complex with a moderate degree of litigation risk.
It is always recommended to terminate employees via mutual termination agreements in Austria, even for terminations during the probation period, to avoid potential claims from litigious employees, as this will enable the employees to receive unemployment benefits if they fulfill the other conditions.
Employees on caregiver leave enjoy special protection from termination, including the right to challenge their termination. These protections may act to delay or prevent termination cost, increase litigation risk, and result in higher termination costs.
Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period:
Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: Per legal requirements. Payment in lieu: Customary. Garden leave: Customary. |
Severance |
Required. The regular severance payment (Ordentliche Abfertigung) is paid through employee’s severance fund (Betriebliche Vorsorgekasse) via employer contributions of 1.53% of the monthly gross salary. Employees with at least 25 years of continuous service are also entitled to a special severance payment (Besondere Abfertigung), which is equal to 1 month’s salary for each completed year of service after 25 years. Collective bargaining agreements may apply. |
Usually an additional severance payment on top of the statutory minimum is offered, in exchange for a waiver of future liabilities. |
Benefits | Must continue to accrue until the end of the notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers are required to follow a fair and reasonable disciplinary process involving a thorough investigation and gather evidence to support termination for serious misconduct. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss an employee immediately without notice due to serious misconduct. |
---|---|
Known locally as |
Extraordinary dismissals (außerordentliche Kündigung) |
Grounds |
|
Compliance requirements |
Employer must follow certain compliance requirements, such as:
|
Legal notice period | No legal requirements |
Severance | No legal requirements |
Final payment due | As soon as possible. Should be made without undue delay within a reasonable timeframe after termination. |
How to notify employee |
|
[ACCORDION] Termination Without Cause
What is it |
Allows employer to terminate an employee without a cause. Termination for redundancy or other business reasons can also be captured under this category, as there is no termination for redundancy per se in Austria. Please note: It might still be unjustified to terminate an employee under this form of termination without cause– eg. in case the termination happened due to discrimination. If such an unjustified reason is underlying the termination without cause, the employee may fight the termination in court. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period |
The employer may terminate according to the notice periods above, however, only at the end of each calendar quarter. |
Severance |
Regular Severance Payment (Ordentliche Abfertigung): No legal requirements, as employers are already required to pay 1.53% of every monthly salary into an employee severance fund (Betriebliche Vorsorgekasse). Upon termination, the employee can either request disbursement of the collected amount or leave it in the fund for further investment. Special Severance Payment (Besondere Abfertigung): Only applies if the employee has completed at least 25 years of continuous service with the same employer. Amount is equal to 1 month's salary for each year of completed service beyond the 25-year threshold. Note: Any applicable collective bargaining agreements and social plans may lead to alternative severance payment schemes that are different from the calculations above. |
Final payment due | As soon as possible. Should be made without undue delay within a reasonable timeframe after termination. |
Other payment entitlements |
Holiday payment (Urlaubsersatzleistung) if the employee has not consumed all their holidays at the point of termination. Note: An employee cannot be forced to consume their outstanding holidays during the notice period. |
How to notify employee | Written notice with reasons for termination |
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Grounds | No legal requirements |
Compliance requirements | Employee must provide a written resignation letter. |
Legal notice period |
As stated in employment agreement and any collective bargaining agreement, if applicable. Usually 6 weeks until the 15th or until the end of a calendar month, depending on length of service. The parties can agree to waive the notice period. |
Severance |
No severance is owed to employees who are terminated by resignation in Austria. However, employers must provide the holiday payment (Urlaubsersatzleistung) if the employee has not consumed all their holidays at the point of resignation. Note: The “Abfertigung” option to cash out severance by the employee severance fund (Betriebliche Vorsorgekasse) by the employee is only lost if they leave employment immediately, but without a cause. |
Final payment due | As soon as possible. Should be made without undue delay within a reasonable timeframe after termination. |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate their employment relationship for any reason. |
---|---|
Common reasons |
|
Legal notice period | As mutually agreed |
Severance | Yes, required. Amount must be higher than what is legally required. |
Final payment due | As mutually agreed |
[ACCORDION] Termination During Probation Period
What is it | Allows employer to terminate their employment relationship at any time during the probation period. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period | No legal requirements |
Severance | No legal requirements. Only holiday payment (Urlaubsersatzleistung) might be owed to the employee. |
Final payment due | As soon as possible. Should be made without undue delay within a reasonable timeframe after termination. |
How to notify employee | Written notice with reasons for termination (electronically signed is sufficient). |
[/ACCORDION]
[DROPDOWN-OPTION] Belarus
Belarus
❗High Complexity | Inform Deel at least 30 days before initiating any termination, except for Termination With Cause with properly documented gross misconduct. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows either employer or employee to end their employment relationship due to misconduct on part of employer or employee. |
---|---|
Grounds |
If initiated by employer, valid grounds include:
If initiated by employee, valid grounds include:
|
Legal notice period | None. However, specific pre-conditions may apply. |
Severance |
If employer is initiating termination, no legal requirements. If employee is initiating termination, employer is legally required to provide ≥ 2 weeks' severance pay. |
Final payment due | On the final day of the Employment Agreement |
How to notify employee |
|
[ACCORDION] Termination for Redundancy or Other Business Reasons
What is it | Allows employer to terminate an employment relationship due to redundancy or other business reasons. |
---|---|
Grounds |
|
Legal notice period | At least 2 months |
Severance | Ranges from at least 2 weeks (e.g. to at least 3 months, depending on termination reason |
Final payment due | On the final day of employment |
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows employees to resign at any time. |
---|---|
Compliance requirements |
|
Legal notice period |
|
Final payment due | On the final day of employment |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate the employee’s employment for any reason. |
---|---|
Common reasons |
|
Severance |
|
Final payment due | On the final day of employment |
How to notify |
No legal requirements. However, a written proposal to initiate mutual termination is recommended. |
[ACCORDION] Termination During Probation Period
What is it | Allows either the employer or the employee to terminate their employment relationship during the probation period. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period | At least 3 days |
Severance | No legal requirements |
How to notify employee |
|
[/ACCORDION]
[DROPDOWN-OPTION] Belgium
Belgium
❗Extremely High Complexity | Inform Deel at least 30 days before initiating any termination, except for Termination With Cause with properly documented gross misconduct. |
Types of terminations
Please note: It is always recommended to seek a mutual termination agreement for any employer-initiated termination in Belgium.
There is no probation period in Belgium.
[ACCORDION] Termination by Giving Notice or Indemnity In Lieu of Notice
What is it | Allows an employer to terminate an employment agreement either by giving a notice period or by paying an indemnity in lieu of notice. |
---|---|
Known locally as |
|
Grounds |
|
Compliance requirements | Employer must follow the legal notice period, or pay an indemnity to the employee in lieu of the notice period. |
Legal notice period |
|
Severance | No legal requirements |
Final payment due | Within a few days after date of termination or at the next payroll cycle |
How to notify employee |
In case of termination by giving notice (i.e. employee continues working during the notice period):
In case of termination by paying indemnity in lieu of notice:
|
[ACCORDION] Termination for Serious Cause
What is it | Allows the employer to dismiss an employee immediately without notice due to serious misconduct. |
---|---|
Known locally as |
|
Grounds |
|
Compliance requirements |
Employer must follow the following process:
|
Legal notice period | No legal requirements |
Severance | No legal requirements |
Final payment due | Within a few days after date of termination or at the next payroll cycle |
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Grounds | No legal requirements |
Compliance requirements | Employee must provide a written resignation letter with the effective date of resignation. |
Legal notice period |
|
Severance | No legal requirements |
Final payment due | Within a few days from the date of termination or at the next payroll cycle |
[ACCORDION] Mutual Termination
Please note: Mutual termination does not allow the EOR employee to receive unemployment benefits.
What is it | Allows both the employer and employee to mutually agree to terminate their employment relationship for any reason. |
---|---|
Common reasons |
|
Legal notice period | As mutually agreed |
Severance | Yes, required. Amount must be higher than what is legally required. |
Final payment due | As mutually agreed |
[/ACCORDION]
[DROPDOWN-OPTION] Brazil
Brazil
Terminations in Brazil are not very complex but there is a high degree of litigation risk.
In Brazil, the employer is free to decide on the termination of any employee and does not need to justify the decision. Therefore, there is no need to invoke any reason for terminating the employee.
Nevertheless, terminations often involve a severance payment above the statutory minimums in exchange for a waiver of liabilities.
Given the high degree of litigation risk from terminations in Brazil, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period:
Note:
Payment in lieu: Allowed. Garden leave: Not allowed. |
Notice period: Per legal requirements. Payment in lieu: Customary. Garden leave: Not customary. |
Severance |
Termination during probation period: Required. The severance will be half of the remuneration that the employee would be entitled to until the end of the probation period. Termination after probation period: Required, except in cases of termination with just cause, by gross misconduct. Payment of 40% of the FGTS balance (Employee Compensation Guarantee Fund) accrued during the employment. Every month, 8% of the value of employee's salary is paid to this fund. |
Usually an additional amount (e.g. 1 to 3 months' salary) is offered on top of the legal requirements. |
Benefits | Must be provided through the notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers are required to follow a disciplinary process regulated by law and provide employees with an opportunity to modify their behavior before a termination with cause can be considered for misconduct, except in cases of very serious breaches of duty. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss employee immediately and without notice due to misconduct. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period | Not required |
Severance | Not required |
Other payment entitlements |
|
Final payment due | Within 10 days after termination |
How to notify employee |
|
[ACCORDION] Termination Without Cause
What is it | Allows employer to terminate an employee due to redundancy or other business reasons. |
---|---|
Grounds | Not required |
Compliance requirements | None |
Legal notice period |
Up to 90 days, based on the length of an employee’s service.
Employer must either give 30 days' working notice and pay employee for any remaining days of notice, or pay the employee for the entire legal notice period. Employees on working notice will have their hours reduced by 2 per day, or are entitled to 7 paid days off at the end of the notice period. *Vacation and statutory leave will be accrued during the notice period. Any unused leave must be paid out. |
Payment in lieu of notice period |
Allowed. Must be either:
|
Severance |
Yes, required:
|
How to notify employee | No legal requirements |
[ACCORDION] Resignation
What is it | An employee may resign at any time by delivering a signed letter of resignation. |
---|---|
Compliance requirements |
Employee must submit a handwritten resignation letter signed in wet ink, in addition to signing the resignation letter on the Deel platform. |
Legal notice period | 30 days' notice |
Severance | Not required |
Other payment entitlements |
|
Final payment due | Within 10 days of termination |
[ACCORDION] Mutual Termination
What is it | Allows employer and employee to mutually agree to terminate their employment relationship at any time. |
---|---|
Common reasons |
|
Compliance requirements | None |
Legal notice period | 30 days |
Payment in lieu of notice period | Allowed. Must be equal to 50% of the notice period. |
Severance |
Yes, required:
|
Final payment due |
10 days after termination |
[ACCORDION] Termination During Probation Period
What is it | Allows either employer or employee to terminate their employment relationship at any time during the probation period. |
---|---|
Grounds | No legal requirements |
Compliance requirements | No legal requirements |
Legal notice period | None, unless specified in Employment Agreement |
Payment in lieu of notice period | None, unless specified in Employment Agreement |
Severance |
|
Other payment entitlements |
|
Final payment due | 10 days after termination |
How to notify |
|
[/ACCORDION]
[DROPDOWN-OPTION] Bulgaria
Bulgaria
Terminations in Bulgaria are highly complex with a moderate degree of litigation risk. It is always recommended to terminate employees via mutual termination agreements in Bulgaria, due to the high risk of unfair dismissal claims/litigation.
Given the complexity of processing terminations in Bulgaria, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period: 30 days, or longer as agreed, but must not be longer than 3 months. Payment in lieu: Allowed. Garden leave: Not allowed. |
Notice period: 30 days. Payment in lieu: Customary. Garden leave: Not customary. |
Severance |
Required if termination is due to business reasons. If the employee is unemployed during the month after termination, they are entitled to 1 month’s gross salary. If the employer offers termination against compensation payment, the severance amount must be at least 4 times that of the employee’s last received monthly gross salary. |
Usually an additional 1 month’s salary on top of the legal minimum is offered, in exchange for a waiver of future liabilities. |
Benefits | Must continue to accrue until the end of notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
None required. |
Types of terminations
[ACCORDION] Ordinary Termination
What is it | Allows employer to dismiss an employee immediately without notice due to performance or business reasons. |
---|---|
Grounds |
|
Compliance requirements | If due to business reasons, the employer can select and dismiss employees whose positions have not been made redundant, in order to retain employees of higher qualifications and better performance. |
Legal notice period | 30 days, if not otherwise agreed. The agreed notice period may not exceed 3 months. |
Severance | Required if due to business reasons. Employee would be entitled to their gross salary for 1 month after their termination, if they are unemployed. |
Final payment due |
During regular payroll where the termination date (i.e. last working day) falls. If termination is due to business reasons, the severance may be split across two payroll cycles. For example, if the termination date is July 5, from July 5 to July 31 the employee is paid during the July payroll, and from August 1 to August 4 they are paid during the August payroll. |
How to notify employee | Written notice |
[ACCORDION] Extraordinary Termination Without Notice By Employer
What is it | Allows employer to terminate an employee without notice under extraordinary circumstances. |
---|---|
Grounds |
|
Compliance requirements | Upon termination, the employer must complete the employee’s workbook and deliver it to the employee. The termination must be registered with the National Revenue Agency within 7 days. |
Legal notice period | No legal requirements |
Severance | No legal requirements |
Final payment due |
|
How to notify employee | Written notice |
[ACCORDION] Termination of the Contract Against Compensation by the Employer
What is it | The employer may offer the employee the termination of the employment against the payment of compensation. |
---|---|
Grounds |
None required |
Compliance requirements | If the employee does not comment on this proposal within a time period of 7 days, it is considered as a refusal of the offer. If the employee replies to the offer/proposal, then the employer can proceed with the termination. |
Legal notice period | No legal requirements |
Severance | Must be at least 4 times that of the employee's last received monthly gross salary. |
Final payment due |
|
How to notify employee | Written notice |
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Grounds | No legal requirements |
Compliance requirements | Employee must provide a written resignation letter with the effective date of resignation. |
Legal notice period | For indefinite contracts: At least 30 days' notice. A longer period (up to a maximum of 3 months) may be contractually agreed. |
Severance | No legal requirements |
Final payment due | The final pay is paid with the regular payroll where the termination date (i.e. last working day) falls. |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate their employment relationship for any reason. |
---|---|
Common reasons |
|
Compliance requirements |
|
Legal notice period | No legal requirements |
Severance | No legal requirements. Usually an additional 1 month's salary is offered on top of what the employee would otherwise be legally entitled to. |
Final payment due |
|
[ACCORDION] Termination During Probation Period
What is it | Allows employer to terminate their employment relationship at any time during the probation period. |
---|---|
Grounds |
|
Compliance requirements | While there are no specific compliance requirements or disciplinary processes mandated for terminations during the probation period, it is advisable for employers to follow fair and transparent procedures. This may include providing feedback and guidance to the employee, documenting any performance issues, and giving the employee an opportunity to improve. |
Legal notice period | No legal requirements |
Severance | No legal requirements |
Final payment due | The final pay (excluding severance) is paid with the regular payroll where the termination date (i.e. last working day) falls. |
How to notify employee |
|
[/ACCORDION]
[DROPDOWN-OPTION] Canada
Canada
Terminations in Canada are not very complex but carry a high degree of litigation risk. Employees can be terminated without cause at any time, as long as notice is provided in accordance with their employment agreement and/or local laws and regulations. However, it is common to provide additional notice on top, in exchange for a waiver against future liabilities.
Given the high degree of litigation risk from terminations in Canada, Deel needs at least 30 days to process such requests except in the case of well documented gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period: Varies based on provincial law. In most provinces, this is at least 1 week's notice per year of service. Payment in lieu: Allowed in most provinces Garden leave: Not allowed |
Notice period: Additional notice above statutory requirements is usually provided in exchange for a waiver of future liabilities. Typically, this is 2 to 4 weeks’ notice per year of service, depending on the role. In some cases, employees may also be entitled to common-law notice. This is dependent on a number of factors including the employee's age, position, and length of service. Payment in lieu: Customary in most provinces. However working notice may be required in order to ensure employee's maintain access to all their benefits throughout the notice period. Garden leave: Not customary. This is not a developed concept in Canadian law. |
Severance | Ontario is the only province that requires statutory severance of 1 week for every year of services, after 5 years of employment. |
Per legal requirements. (Note: The term “severance pay” or “termination pay” in Canada is often used colloquially to also include payments in lieu of notice.) |
Benefits | Must be provided through the notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process | None required. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss employee immediately and without notice due to deliberate misconduct. |
---|---|
Grounds |
*Job performance issues are generally not accepted grounds |
Compliance requirements |
|
Legal notice period | No legal requirements |
Severance | No legal requirements. However, it is recommended to provide severance for a release from potential future claims. |
How to notify employee |
|
[ACCORDION] Termination Without Cause
What is it | Allows employer to dismiss an employee due to redundancy or business reasons, including job performance issues. |
---|---|
Grounds |
|
Compliance requirements |
Must not be a protected employee (e.g. disabled, pregnant) as defined by provincial law |
Legal notice period |
Varies based on provincial law |
Severance |
|
Final payment due | Usually 10-15 days after termination |
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Compliance requirements |
|
Legal notice period | No legal requirements |
Severance | No severance is owed to employees who resign in Canada. However, additional severance may be advisable in exchange for a release. |
[ACCORDION] Mutual Termination
Important: Mutual termination agreements must be reviewed by Canadian counsel. If you are seeking to negotiate a mutual termination agreement with an employee, please contact Deel well in advance of the target termination date.
What is it | Allows both the employer and employee to mutually agree to terminate the employee’s employment for any reason. |
---|---|
Common reasons |
|
Severance | Yes, amount varies based on provincial law |
Final payment due | Usually within 10 days after termination |
[ACCORDION] Termination During Probation Period
What is it | Allows employer to terminate their employment relationship with an employee at any time during the probation period. |
---|---|
Grounds | No legal requirements |
Compliance requirements |
|
Legal notice period | No legal requirements |
Severance | No legal requirements. However, additional severance may be recommended in exchange for a release. |
[/ACCORDION]
[DROPDOWN-OPTION] Chile
Chile
Terminations in Chile are not very complex with a moderate degree of litigation risk.
Given the high degree of litigation risk from terminations in Chile, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period: 30 days. Payment in lieu: Allowed. Garden leave: Not allowed. |
Notice period: Companies in Chile usually do not provide notice, and instead make payment in lieu of notice. Payment in lieu: Customary. Garden leave: Not customary. |
Severance | Required if the termination reason is redundancy and the employee has at least 1 year of service. After the first year of service,severance payment equivalent to 30 days of salary per year of services and per fraction of time above 6 months. | An additional severance payment on top of the statutory minimum can be offered. |
Benefits | Must continue to accrue until the end of notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers are required to follow a fair and reasonable disciplinary process involving a formal investigation before termination can be considered for misconduct. |
Types of terminations
Please note that probation is not recognized under Chilean labor laws.
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss an employee immediately without notice due to serious misconduct. |
---|---|
Grounds |
|
Compliance requirements | Has to be determined on a case-by-case basis. |
Legal notice period | No legal requirements |
Severance | No legal requirements |
Final payment due | 10 days after date of termination |
How to notify employee | Written notice, personally delivered to employee or via registered mail with proof of receipt |
[ACCORDION] Termination due to Redundancy or Other Business Reasons
What is it | Allows employer to terminate an employee due to redundancy or other business reasons. |
---|---|
Grounds | Business reasons (e.g. company downsizing, restructuring) |
Compliance requirements | Employer needs to send the letter of termination through the official mail, and upload calculations for the final pay (for the employee to accept) in the Ministry of Labor's online portal. |
Legal notice period | 30 days |
Severance |
No legal requirements if employee is terminated within the 1st year of service. After 1st year of service:
|
Final payment due | 10 days after date of termination |
How to notify employee | Written termination notice sent through Chilean official mail |
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Grounds | No legal requirements |
Compliance requirements | Employee must either submit their resignation through the Ministry of Labour's online portal, or submit a letter of resignation signed in wet ink before a Public Notary. |
Legal notice period | 30 days. (Note: However, there are no sanctions under Chilean law for employees who do not provide such notice.) |
Severance | No legal requirements |
Final payment due | 10 days after date of termination |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate their employment relationship for any reason. |
---|---|
Common reasons |
|
Legal notice period | As mutually agreed |
Severance |
Strictly speaking, a mutual termination agreement can be reached by agreeing no severance but will be rare if the employee accepts signing the agreement this way. The parties may agree on an amount of severance in order for both being comfortable to sign a mutual termination agreement. |
Final payment due | 10 days after date of termination |
[/ACCORDION]
[DROPDOWN-OPTION] Colombia
Colombia
Terminations in Colombia are not very complex with a moderate degree of litigation risk.
Given the degree of litigation risk from terminations in Colombia, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period: None Payment in lieu: Not allowed Garden leave: Not allowed |
Notice period: None Payment in lieu: Not customary Garden leave: Not customary |
Severance |
Required if termination is due to redundancy or other business reasons. For indefinite contracts:
Note: If the employee earns more than 10 times the minimum wage, the severance amount will be 20 days’ pay for the first year of service. Thereafter, the employee is entitled to 15 days’ pay for every additional year of service (pro-rated). For fixed-term contracts:
|
Usually an additional 1 to 3 months' salary is offered on top of the legal requirements in exchange for a waiver of future liabilities. |
Benefits | Must be provided through the notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
|
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss employee immediately and without notice due to deliberate misconduct. |
---|---|
Grounds |
|
Compliance requirements |
Must conduct a robust disciplinary process as required by law |
Legal notice period | 10 calendar days |
Severance | No legal requirements |
How to notify employee |
|
[ACCORDION] Termination for Redundancy or Other Business Reasons
What is it | Allows employer to terminate an employee when their functions, duties and responsibilities no longer exist due to changes to the business operations. |
---|---|
Grounds |
*Pregnancy or illness may not be valid grounds, depending on the case. |
Compliance requirements |
|
Legal notice period | 10 calendar days |
Severance |
For employees on indefinite contracts, based on years of service:
For employees on fixed-term contracts:
*Note: Additional payment may be required to secure release from potential future claims. |
Final payment due | Within 15 days after termination |
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time by delivering a signed letter of resignation. |
---|---|
Compliance requirements |
|
Legal notice period | None |
Severance | No legal requirements |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate the employee’s employment for any reason. |
---|---|
Common reasons |
|
Legal notice period | None |
Severance | No legal requirements. However, it is recommended to offer a severance to reduce the risk of the mutual agreement being contested in court. |
[ACCORDION] Termination During Probation Period
What is it | Allows either employer or employee to end their employment relationship during the probation period. |
---|---|
Grounds |
Employees do not need valid grounds to initiate termination during probation period. Employers must have valid grounds related to employee's job performance or behavior:
|
Compliance requirements | Must not be discriminatory or unlawful (if initiated by employer) |
Legal notice period | As stated in Employment Agreement |
Severance | No legal requirements |
[/ACCORDION]
[DROPDOWN-OPTION] Costa Rica
Costa Rica
Terminations in Costa Rica are not very complex with a high degree of litigation risk.
Given the high degree of litigation risk from terminations in Costa Rica, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period:
Payment in lieu: Allowed. Garden leave: Not allowed. |
Notice period: Per legal requirements. Payment in lieu: Customary. Garden leave: Not customary. |
Severance |
Required. Amount depends on seniority, starting at 19.5 days.
|
Usually an additional severance payment is offered on top of the legal minimum, in exchange for a waiver of future liabilities. |
Benefits | Must continue to accrue until the end of notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
None required. |
[DROPDOWN-OPTION] Croatia
Croatia
Terminations in Croatia are highly complex with a moderate degree of litigation risk.
Given the complexity of processing terminations in Croatia, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period during probation: 7 days. Notice period after probation:
Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: Per legal requirements. Payment in lieu: Customary. Garden leave: Customary. |
Severance |
Required if the employee has at least 2 years of service and is not being terminated due to misconduct. Amount is at least one-third of average monthly salary, based on the last 3 months before termination, for each completed year of service. The total severance amount is capped at 6 average monthly salaries, unless otherwise stated by law, collective agreement or employment agreement. |
Usually an additional 1 month’s salary on top of the statutory minimum is offered, in exchange for a waiver of future liabilities. |
Benefits | Must continue to accrue until the end of notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers are required to provide the employee an opportunity to defend themselves, before termination can be considered for misconduct or poor performance. |
Types of terminations
[ACCORDION] Ordinary Termination
What is it | Allows employer to terminate an employment contract by providing notice due to a justified reason. |
---|---|
Grounds |
|
Compliance requirements |
Before the termination can be carried out, the employer must:
|
Legal notice period |
If after probation period:
If during probation period: 7 days |
Severance |
If the employee has <2 years of service, no severance required. If the employee has ≥2 years of service, severance is required:
|
Final payment due | By the next payroll cycle |
How to notify employee |
|
[ACCORDION] Extraordinary Termination
What is it | Allows either the employer or employee to terminate an employment relationship without notice due to a serious breach of employment contract. |
---|---|
Grounds | Particularly serious breach of employment conditions or other important facts, circumstances and interests of both contracting parties, that the continuation of employment is not possible. |
Compliance requirements |
|
Legal notice period | No legal requirements |
Severance |
If the employee has ≥2 years of service, and is not being terminated due to misconduct, severance is required. If the employee has <2 years of service, no severance required. If the employee has ≥2 years of service, severance is required:
|
Final payment due |
By the next payroll cycle
|
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time in accordance with their employment agreement. |
---|---|
Grounds | No legal requirements |
Compliance requirements | Employee must provide a written resignation letter with the effective date of resignation. |
Legal notice period | 30 days |
Severance | No legal requirements |
Final payment due | By the next payroll cycle |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate their employment relationship for any reason. |
---|---|
Common reasons |
|
Legal notice period | As mutually agreed |
Severance | Yes, required. Amount must be higher than what is legally required. |
Final payment due | As mutually agreed |
[ACCORDION] Termination During Probation Period
What is it | Allows employer to terminate their employment relationship at any time during the probation period. |
---|---|
Grounds |
|
Compliance requirements | No legal requirements. However it is recommended that the employer provides clear feedback to the employee regarding their performance or behavior during the probation period. This can help maintain transparency and fairness in the process. |
Legal notice period | At least 7 days |
Severance | No legal requirements |
Final payment due | By the next payroll cycle |
How to notify employee | Written notice is not required by law, but it is recommended for the employer to provide one for the record. |
[/ACCORDION]
[DROPDOWN-OPTION] Czech Republic
Czech Republic
Terminations in Czech Republic are highly complex with a high degree of litigation risk. It is always recommended to terminate employees via mutual termination agreements in Czech Republic, due to the high risk of unfair dismissal claims/litigation.
Given the complexity of processing terminations in Czech Republic, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period: At least 2 months, starting from the first day of calendar month after the delivery of notice, and ending on the last day of the relevant calendar month. Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: Per legal requirements. Payment in lieu: Customary. Garden leave: Customary. |
Severance |
Required if termination reason is redundancy.
|
Usually an additional severance payment is offered on top of the legal minimum, in exchange for a waiver of future liabilities. |
Benefits | Must continue to accrue until the end of notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
None required. |
Types of terminations
[ACCORDION] Termination With Cause
Note: You must notify Deel as soon as you discover the facts or circumstances that may form a possible basis for Termination With Cause.
What is it | Allows employer or the employee to end their employment relationship immediately without notice due to an extraordinary circumstance (e.g. deliberate misconduct). |
---|---|
Grounds |
If initiated by employer:
If initiated by employee:
|
Compliance requirements |
If initiated by employer:
If initiated by employee:
|
Legal notice period | No legal requirements if grounds are valid |
Severance |
Yes, required if initiated by employee:
|
Final payment due | On the date of termination |
How to notify employee |
|
[ACCORDION] Termination for Redundancy or Other Business Reasons
What is it | Allows employer to terminate an employee when their functions, duties and responsibilities no longer exist due to changes to the business operations, or due to employee no longer able to fulfill their job requirements (e.g. poor performance). |
---|---|
Grounds |
|
Compliance requirements |
Must not terminate employees who have been/are:
|
Legal notice period | At least 2 months, starting from first day of calendar month after the delivery of notice, and ending on the last day of the relevant calendar month. |
Severance |
Yes, required for redundancy or business reasons.
If employee is being terminated for personal reasons, no severance is required. |
Final payment due | On next payday fixed for wage payment, or as otherwise mutually agreed |
How to notify employee |
Written notice delivered personally to employee. |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate the employee’s employment for any reason. |
---|---|
Common reasons |
|
Legal notice period | As mutually agreed |
Severance | Yes, required. Amount must be higher than statutorily required. |
Final payment due | On date of termination |
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Grounds | No legal requirements |
Compliance requirements | Employee must provide a signed resignation letter. |
Legal notice period | At least 2 months, starting from the first day of the calendar month after delivering notice and ending on the last day of the relevant calendar month. |
Severance | No legal requirements |
Final payment due | On date of termination |
[ACCORDION] Termination During Probation Period
What is it | Allows either employer or employee to terminate their employment relationship at any time during the probation period. |
---|---|
Grounds | No legal requirements |
Compliance requirements |
|
Legal notice period | No legal requirements |
Severance | No legal requirements |
Final payment due | On date of termination |
How to notify employee | Written notice |
[/ACCORDION]
[DROPDOWN-OPTION] Denmark
Denmark
Terminations in Denmark are highly complex with a high degree of litigation risk. It is always recommended to terminate employees via mutual termination agreements in Denmark, due to the high risk of unfair dismissal claims and litigation.
Given the complexity of processing terminations in Denmark, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period during probation: 14 days. Notice period after probation:
Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: Per legal requirements. Payment in lieu: Not customary. Garden leave: Customary. |
Severance |
Required only if termination is due to redundancy and the employee has at least 12 years of service.
|
Usually an additional severance payment is offered on top of the legal minimum, in exchange for a waiver of future liabilities. |
Benefits | Must continue to accrue until the end of notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers are required to follow a fair and reasonable disciplinary process involving multiple formal warnings before termination can be considered for misconduct or poor performance. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss an employee immediately without notice due to serious misconduct. |
---|---|
Grounds |
Note: Ordinary sickness does not justify termination with cause. However, dismissal owing to the employee's sickness absence may very well be considered fair depending on the specific circumstances at hand including the duration of the sickness absence, the opportunities for the employee to take up the work again and the problems caused to the employer's operations due to the employee's absence. |
Compliance requirements |
|
Legal notice period |
Note:
|
Severance | No legal requirements |
Final payment due | At the end of the month in which the notice period ends, or as mutually agreed |
How to notify employee |
|
[ACCORDION] Termination due to Redundancy or Other Business Reasons
Please note that it is recommended to seek mutual termination agreement to avoid litigation claims for wrongful termination, even in situations of redundancy.
What is it | Allows employer to terminate an employee due to redundancy or other business reasons. |
---|---|
Grounds | Business reasons (e.g. company downsizing, restructuring) |
Compliance requirements |
|
Legal notice period |
Note:
|
Severance |
Yes, required if employee has ≥12 years' service:
|
Final payment due | No legal requirements |
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Grounds | No legal requirements |
Compliance requirements | Employee must provide a written, signed resignation letter. |
Legal notice period |
1 month, or as otherwise stated in employment agreement Note: Any such notice must be given to expire on the last day of any calendar month. |
Severance | No legal requirements |
Final payment due | No legal requirements |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate their employment relationship for any reason. |
---|---|
Common reasons |
|
Legal notice period | As mutually agreed, but must be in accordance with the Danish Salaried Employees Act or any applicable collective bargaining agreements. |
Severance | Yes, required. Amount must be higher than what is legally required. |
Final payment due | As mutually agreed |
[ACCORDION] Termination During Probation Period
What is it | Allows employer to terminate their employment relationship at any time during the probation period. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period |
Usually at least 14 days, or as stated in employment agreement. Note: If employment agreement does not state that 14 days notice is required, employee can terminate during probation period without giving notice. However, if initiated by the employer, they must provide 14 days' notice to the employee. |
Severance | No legal requirements |
Final payment due | No legal requirements |
How to notify employee | No legal requirements |
[/ACCORDION]
[DROPDOWN-OPTION] Estonia
Estonia
Terminations in Estonia are highly complex with a high degree of litigation risk. It is always recommended to terminate employees via mutual termination agreements in Estonia, due to the high risk of unfair dismissal claims/litigation.
Given the complexity of processing terminations in Estonia, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period during probation: 15 days. Notice period after probation:
Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: Per legal requirements. Payment in lieu: Customary. Garden leave: Customary. |
Severance | Required if termination reason is redundancy. Amount is at least 1 month’s average wages. | Usually an additional severance payment is offered on top of the legal minimum, in exchange for a waiver of future liabilities. |
Benefits | Must continue to accrue until the end of notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers are required to document and provide evidence to justify termination and provide a written notification to the employee of the reason for termination. |
Types of terminations
[ACCORDION] Termination with Cause
What is it | Allows either employer or employee to end their employment relationship immediately without notice due to deliberate misconduct. |
---|---|
Grounds |
Valid grounds for employee to initiate:
Valid grounds for employer to initiate:
|
Compliance requirements |
If initiated by employer, employer must:
|
Legal notice period |
If initiated by employee, no legal notice period is required. If initiated by employer, legal notice period depends on years of service:
*Legal notice period may not be required in cases where it would not be reasonable in the specific circumstances. |
Severance |
If initiated by employee, employer may be required to pay severance. If initiated by employer, no severance is required. |
Final payment due | On the date of termination of the Employment Agreement |
How to notify employee |
Can be sent to employee directly or via post, with wet ink signature; or via email with digital/electronic signature |
[ACCORDION] Termination for Redundancy or Other Business Reasons
What is it | Allows employer to terminate an employee when their functions, duties and responsibilities no longer exist due to changes to the business operations. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period |
Depends on length of service:
*Legal notice period may not be required in cases where it would not be reasonable in the specific circumstances. |
Severance |
For employees on indefinite contracts, they are entitled to at least 1 month of average wages when terminated for redundancy. For employees on fixed-term contracts, they are entitled to severance equal to the amount they would have earned until the expiry of the contract*. *Except in cases of bankruptcy or a cessation of business |
Final payment due | On the date of termination of Employment Agreement |
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Legal notice period |
30 days (or 15 days if during probation) |
Severance | No legal requirements |
Final payment due | On the date of termination of Employment Agreement |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate the employee’s employment for any reason. |
---|---|
Grounds |
|
Legal notice period | No legal requirements |
Severance | No legal requirements. However, negotiating a mutual termination agreement will always entail the offer of a severance package. |
Final payment due | On the date of termination of the Employment Agreement |
[ACCORDION] Termination During the Probation Period
What is it | Allows employer to terminate their employment relationship at any time during the probation period. |
---|---|
Grounds | Grounds for termination during the probation period include:
|
Compliance requirements |
|
Legal notice period | As stated in Employment Agreement. If not stated, 15 days |
Severance | No legal requirements |
Final payment due | On the date of termination of the Employment Agreement |
How to notify employee |
Can be delivered directly to the employee or sent by post mail (signed with wet ink); or sent via email (digital/electronic signature) |
[/ACCORDION]
[DROPDOWN-OPTION] Finland
Finland
Terminations in Finland are highly complex with a high degree of litigation risk. It is always recommended to terminate employees via mutual termination agreements in Finland, due to the high risk of unfair dismissal claims/litigation.
Given the complexity of processing terminations in Finland, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period:
Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: Per legal requirements. Payment in lieu: Not customary. Garden leave: Customary. |
Severance | None required. | Usually a severance payment on top of employee’s notice period is offered, in exchange for a waiver of future liabilities. The calculation of the extra compensation amount depends on the employee's length of service and the possibility of the employee finding a new job. |
Benefits | Must continue to accrue until the end of notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers are required to follow a fair and reasonable disciplinary process involving multiple formal warnings before termination can be considered for misconduct or poor performance. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss an employee immediately without notice due to serious misconduct. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period | No legal requirements |
Severance | No legal requirements |
Final payment due | On the last working date, unless otherwise agreed |
How to notify employee |
|
[ACCORDION] Termination due to Redundancy or Other Business Reasons
What is it | Allows employer to terminate an employee due to redundancy or other business reasons. |
---|---|
Grounds |
|
Compliance requirements |
If due to business reasons:
If due to poor performance:
|
Legal notice period |
|
Severance | No legal requirements |
Final payment due | On last working date, unless otherwise agreed |
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Grounds | No legal requirements |
Compliance requirements | None. Employee does not need to submit a written resignation letter, though it is recommended. |
Legal notice period |
|
Severance | No legal requirements |
Final payment due | On last working date, unless otherwise agreed |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate their employment relationship for any reason. |
---|---|
Common reasons |
|
Legal notice period | As mutually agreed |
Severance | Yes, required. Amount must be higher than what is legally required. The amount is usually a sum of extra compensation in addition to the employee's notice period. The calculation of the extra compensation amount depends on the employee's length of service and the possibility of the employee finding a new job. Ultimately, the amount will have to be mutually agreed. |
Final payment due | Last working day, unless otherwise agreed |
How to notify employee | If the mutual termination agreement is a result of a redundancy process, the agreement must be signed by both parties. A termination notice must be signed by Deel. Ideally the employee should also signs in acknowledgement of receipt but if they refuse to sign it, it does not invalidate the notice. |
[ACCORDION] Termination During Probation Period
What is it | Allows employer to terminate their employment relationship at any time during the probation period. |
---|---|
Grounds |
No legal requirements |
Compliance requirements | Probation period must not be longer than 4 months. |
Legal notice period | No legal requirements |
Severance | No legal requirements |
Final payment due | On the last working day, unless otherwise agreed |
How to notify employee |
|
[/ACCORDION]
[DROPDOWN-OPTION] France
France
Terminations in France are highly complex with a high degree of litigation risk.
Severance payments are always required, except in cases of serious misconduct. The French authorities must also approve any mutual termination agreements.
Given the complexity of processing terminations in France, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Probation Period | Maximum 180 days. For executive positions, maximum 240 days. | 90 days. For executive positions, 120 days with a possibility of extending by another 120 days. |
Notice Period |
Notice period: Varies depending on several factors and must be evaluated on a case-by-case basis. Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: Per legal requirements. Payment in lieu: Customary. Garden leave: Customary. |
Severance | Required as long as termination is not due to misconduct, starting at 0.25 month’s salary depending on years of service. | Amount varies. Because of the complexity of the process, it is not uncommon for the parties to negotiate severance greater than the required minimum. |
Benefits | Must be provided through the notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
|
Types of terminations
[ACCORDION] Termination for Disciplinary Reasons
What is it | Allows employer to dismiss an employee due to misconduct. |
---|---|
Grounds |
*Professional incompetence and poor performance are generally not valid grounds for termination for disciplinary reasons, unless the poor quality of work or results is caused by wilful absenteeism or misconduct. |
Compliance requirements |
|
Legal notice period | Varies depending on several factors, including employee's seniority level, terms of employment and grounds for termination. Deel’s legal group will need to evaluate and confirm the notice period on a case-by-case basis. |
Severance |
No legal requirements |
Other payment entitlements |
|
Final payment due | On the date of termination of the Employment Agreement |
How to notify employee | Registered letter sent by French post or by R24. |
[ACCORDION] Termination for Non-Disciplinary Reasons
What is it | Allows employer to terminate an employment relationship due to poor performance or professional incompetence. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period | Varies depending on several factors, including employee's seniority level, employment terms and the grounds for termination. Deel’s legal group will need to evaluate and confirm the notice period on a case-by-case basis. |
Severance | Yes, required. Amount is determined by the terms of any Collective Bargaining Agreement. |
Other payment entitlements |
|
Final payment due | On the date of termination of the Employment Agreement |
How to notify employee | Registered letter sent by French post or by AR24 |
[ACCORDION] Termination for Incapacity
What is it | Allows employer to end an employment relationship when an employee becomes incapable of carrying out their duties due to medical or health reasons. |
---|---|
Grounds |
|
Compliance requirements |
This type of termination can 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. |
Legal notice period | No notice is needed subsequent to the formal process. |
Severance |
For non-work related incapacity the employee is entitled to:
For work-related incapacity (i.e. occupational injury or illness), the employee is entitled to double the severance amount for non-work related incapacity. |
Final payment due | The date of termination of the Employment Agreement. |
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Compliance requirements | Employee must provide notice in line with their Employment Agreement and any Collective Bargaining Agreement. |
Legal notice period |
As stated in Employment Agreement or Collective Bargaining Agreement. This is usually:
*The employer can exempt the employee from serving the notice period. |
Severance | No legal requirements |
Other payment entitlements | Employees are entitled to their réserve financière. |
Final payment due | The date of termination of the Employment Agreement |
How to notify employee | Registered letter sent by French post or by AR24 |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate the employee’s employment for any reason (in France, this includes business reasons or redundancy). |
---|---|
Common reasons |
|
Compliance requirements |
Must follow a formal procedure that includes notifying and obtaining the approval of the relevant Regional Directorate for Economy, Employment, Labor, and Solidary (DREETS) |
Legal notice period | No notice is needed. However, the termination process takes at least 45 days. |
Severance |
Minimum severance amount is determined 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*. *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. |
Other payment entitlements |
|
Final payment due | The date of termination of the employment agreement. |
[ACCORDION] Termination During Probation Period
What is it | Allows either employer or employee to terminate their employment relationship at any time during the probation period. |
---|---|
Grounds | No legal requirements |
Compliance requirements | There are special limitations on this type of termination:
|
Legal notice period |
If initiated by employer:
If initiated by employee:
|
Severance | No legal requirements |
Other payment entitlements |
|
How to notify employee | Registered letter sent by French post or by AR24 |
[/ACCORDION]
[DROPDOWN-OPTION] Germany
Germany
Terminations in Germany are highly complex with a high degree of litigation risk.
Given the complexity of processing terminations in Germany, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period:
Payment in lieu: Not allowed. Garden leave: Allowed. |
Notice period: Per legal requirements Payment in lieu: Not customary. Garden leave: Customary. |
Severance | Required. At least 0.5 month’s salary for each year for service for employees who have been employed for more than 6 months. | Usually 1.5 months’ salary per year of service. |
Benefits | Must be provided through the notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
|
Types of terminations
Please note that fixed-term or definite-term Employment Agreements can only be terminated before the end of the contract term by Mutual Termination.
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss an employee immediately without notice due to serious misconduct. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period |
For very severe breaches of contract, the employee can be dismissed immediately without notice. In other cases, the notice period will be as stated in the employment agreement. Otherwise, the statutory notice period will apply, depending on the employee's length of service:
|
Severance | No legal requirements |
Final payment due | In the payroll of the same month of the date of termination (i.e. if termination is in April, the final payment will be made in April payroll) |
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Compliance requirements | The resignation letter must be signed with wet ink and shared with the employer in accordance with the terms set in the Employment Agreement. |
Legal notice period |
4 weeks (2 weeks if employee resigns during probation period)
Note:
|
Severance | No legal requirements |
Other payment entitlements | Any outstanding pay for days worked |
Final payment due | In the payroll of the same month of the date of termination (i.e. if termination is in April, the final payment will be made in April payroll) |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate their employment relationship for any reason. |
---|---|
Common reasons |
|
Legal notice period |
Both parties can negotiate the last day of work and any garden leave. It is recommend to observe the notice period, to avoid disadvantaging the employee from their unemployment benefit. If parties did not have a contractually agreed notice period, then the following statutory notice period will apply, depending on the employee's length of service:
|
Severance |
Yes, required. Usually includes payment equivalent to the sum of the notice period and an incentive (usually 1.5 months per year of service) for the mutual agreement. The incentive is calculated based on length of service, professional level, and an indemnity against allegations of unfair dismissal. For employees on fixed-term contracts, severance amounts must be at least equal to what the employee would have earned from the remainder of the contract. |
Final payment due | In the payroll of the same month of the date of termination (i.e. if termination is in April, the final payment will be made in April payroll) |
[ACCORDION] Termination During Probation Period
What is it | Allows employer to unilaterally terminate an employment relationship at any time during the probation period. |
---|---|
Grounds |
|
Legal notice period | 2 weeks |
Severance | No legal requirements |
Final payment due | In the payroll of the same month of the date of termination (i.e. if termination is in April, the final payment will be made in April payroll) |
How to notify employee |
|
[/ACCORDION]
[DROPDOWN-OPTION] Georgia
Georgia
Terminations in Georgia are highly complex with a high degree of litigation risk.
Given the complexity of processing terminations in Georgia, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period: 30 days. Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: Per legal requirements. Payment in lieu: Customary. Garden leave: Customary. |
Severance | Required, at 1 month's basic salary. | Usually an additional 1 month's basic salary is offered on top of legal requirements in exchange for a waiver of future claims. |
Benefits | Must be provided through the notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
None required. |
[DROPDOWN-OPTION] Greece
Greece
Terminations in Greece are highly complex with a high degree of litigation risk. It is always recommended to terminate employees via mutual termination agreements in Greece, due to the high risk of unfair dismissal claims.
Given the complexity of processing terminations in Greece, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period: Optional. If employers choose to provide notice, these are the statutory requirements:
Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: Per legal requirements. Payment in lieu: Customary. Garden leave: Customary. |
Severance |
Required. Amount depends on years of service, and is reduced by 50% if statutory notice is provided.
|
Usually an amount higher than statutory requirements in exchange for a waiver of future claims. |
Benefits | Must continue to accrue until the end of the notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers are required to issue multiple warnings to employees before considering termination for performance issues. |
Types of terminations
For termination of fixed-term contracts, please see Mutual Terminations.
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss an employee immediately without notice due to serious misconduct. |
---|---|
Grounds |
|
Compliance requirements | Cause for termination must be so serious that it makes continued employment relationship untenable, even temporarily. |
Legal notice period | No legal requirements |
Severance |
For fixed-term contracts, no legal requirements.
For indefinite contracts, severance amount depends on years of service:
Note: If employee committed a criminal offense and employer had filed a criminal complaint against them, the employee can be terminated without severance. |
Final payment due |
On date of termination. However, if severance is >2 months' salary, employer can choose to:
|
Other payment entitlements | Pro-rated Christmas & Easter bonus, if any |
How to notify employee |
|
[ACCORDION] Termination for Redundancy or Other Business Reasons
What is it | Allows employer to terminate an employee due to redundancy or other business reasons. |
---|---|
Grounds |
|
Compliance requirements |
For redundancy:
For performance issues:
|
Legal notice period |
Optional. If employer chooses to notify employee before termination, the statutory requirements are:
|
Severance |
For indefinite contracts, severance amount depends on years of service:
Note: If employer provides statutory notice (see above), severance owed is reduced by 50%. |
Final payment due |
On date of termination. However, if severance is >2 months' salary, employer can choose to:
|
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Grounds | No legal requirements |
Compliance requirements |
|
Legal notice period |
For fixed-term contracts, no notice required. For indefinite-term contracts:
|
Severance | No legal requirements |
Final payment due | On the date of termination |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate their employment relationship for any reason. |
---|---|
Common reasons |
|
Compliance requirements | Both parties must sign a standard termination form (on top of the mutual termination agreement). Labor authorities must be notified electronically within 4 working days. |
Legal notice period | As mutually agreed |
Severance | Yes, required. Amount must be higher than what is legally required. |
Final payment due | On date of termination |
[ACCORDION] Termination During Probation Period
What is it | Allows employer to terminate their employment relationship at any time during the probation period. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period | No legal requirements |
Severance | No legal requirements |
Final payment due | On date of termination |
[/ACCORDION]
[DROPDOWN-OPTION] Hong Kong
Hong Kong
Terminations in Hong Kong are moderately complex with a moderate degree of litigation risk.
Given the complexity of processing terminations in Hong Kong, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period: As stated in Employment Agreement. Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: 1 month. Payment in lieu: Customary. Garden leave: Customary. |
Severance | Required if termination reason is redundancy and the employee has at least 2 years of service. Amount is two-thirds of the monthly salary for every year of service, capped at HK$390,000. | Usually an additional severance payment is offered on top of the legal minimum, in exchange for a waiver of future liabilities. |
Benefits | Must continue to accrue until the end of notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process | None required. As per employer handbook. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to end their employment relationship immediately without notice due to deliberate misconduct. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period | No legal requirements |
Severance | No legal requirements |
Final payment due | Within 7 days after termination |
How to notify employee |
|
[ACCORDION] Termination for Redundancy or Other Business Reasons
What is it | Allows employer to terminate an employee when their functions, duties and responsibilities no longer exist due to changes to the business operations, or if employee is underperforming. |
---|---|
Grounds |
|
Compliance requirements |
If due to redundancy, there must be a real redundancy i.e. employee's job is no longer available or existing. If due to poor performance,
|
Legal notice period | 1 month, or as stated in Employment Agreement |
Severance |
Yes, required if employee has been in continuous service for at least 2 years.
|
Final payment due | Within 7 days of termination |
Other payment entitlements | Employees with ≥5 year's continuous service may also be entitled to Long Service Payment (LSP). |
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows employee to resign at any time in accordance with their Employment Agreement. |
---|---|
Grounds | No legal requirements |
Compliance requirements | Employee must provide a resignation letter signed with wet ink, at least 30 days before their last day. |
Legal notice period | 1 month or as stated in Employment Agreement |
Severance | No legal requirements |
Final payment due | 7 days after termination |
Other payment entitlements |
Employees with ≥5 year's continuous service are entitled to Long Service Payment (LSP) if they resign due to illness or if they are 65 years old and above. |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate the employee’s employment for any reason. |
---|---|
Common reasons |
|
Legal notice period | No legal requirements |
Severance | Yes, required. Amount usually higher than legal requirements. |
Final payment due | Within 14 days after termination |
[ACCORDION] Termination During Probation Period
What is it | Allows employer to terminate their employment relationship at any time during the probation period. |
---|---|
Grounds |
No legal requirements, however it is recommended to only terminate an employee during probation based on:
|
Compliance requirements |
Termination must not be based on a prohibited ground, such as discrimination based on sex, race, pregnancy, marital status, family status, or disability. |
Legal notice period |
|
Severance | No legal requirements |
Final payment due | Within 14 days after termination |
How to notify employee | Can be sent via email with an electronic signature. |
[/ACCORDION]
[DROPDOWN-OPTION] Hungary
Hungary
Terminations in Hungary are highly complex with a moderate degree of litigation risk. It is always recommended to terminate employees via mutual termination agreements in Hungary, due to the risk of unfair dismissal claims/litigation.
Given the complexity of processing terminations in Hungary, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period: 30 days. Employees with more than 3 years of service are entitled to additional notice. Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: Per legal requirements. Payment in lieu: Customary. Garden leave: Customary. |
Severance | Required for termination with cause if the employee has more than 3 years of service. Amount depends on years of service, and ranges from 1 month’s pay to 6 months’ pay. | Usually an additional 1 month’s salary on top of the legal minimum is offered, in exchange for a waiver of future liabilities. |
Benefits | Must continue to accrue until the end of notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers are required to carry out an internal investigation before termination can be considered for misconduct or breach of duty. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss an employee immediately without notice due to serious misconduct. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period |
Employees are entitled to 30 days' notice, and additional notice based on their years of continuous service:
Note:
|
Severance |
If due to misconduct or employee's professional inability, if the employee is a pensioner, or if there is no successor for the employee’s job, no severance is required. Otherwise, severance is required:
Note:
|
Final payment due | 5 working days after termination |
Other payment entitlements | Absentee pay, if applicable |
How to notify employee | Written notice |
[ACCORDION] Termination Without Cause
What is it | Allows employer to terminate an employment relationship under extraordinary circumstances. |
---|---|
Grounds |
|
Compliance requirements | Date of termination is the same day that the employee receives the termination notice (see “How to notify employee”) |
Legal notice period | No legal requirements |
Severance | No legal requirements |
Final payment due | On the date of termination |
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows employee to resign at any time in accordance with their employment agreement. |
---|---|
Grounds | No legal requirements |
Compliance requirements | Employee must provide a written and signed resignation letter. |
Legal notice period | At least 30 days, or as mutually agreed |
Severance | No legal requirements |
Final payment due |
|
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate their employment relationship for any reason. |
---|---|
Common reasons |
|
Legal notice period | As mutually agreed |
Severance | Yes, required. Amount must be higher than what is legally required. Usually an additional 1 month's salary is offered on top of what the employee would be legally entitled to. |
Final payment due | 5 working days after termination |
[ACCORDION] Termination During Probation Period
What is it | Allows employer to terminate their employment relationship at any time during the probation period. |
---|---|
Grounds |
No legal requirements |
Compliance requirements |
|
Legal notice period | No legal requirements |
Severance | No legal requirements |
Final payment due | 5 working days after termination |
How to notify employee | Written notice |
[/ACCORDION]
[DROPDOWN-OPTION] India
India
Terminations in India are moderately complex with a moderate degree of litigation risk. It is common to negotiate a mutual termination agreement that includes a payment of severance above the statutory minimums.
Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period: Minimum 1 month. Payment in lieu: Allowed Garden leave: Allowed |
Notice period: 1 month for mid-level employees and 3 months for senior employees. Payment in lieu: Customary Garden leave: Customary |
Severance |
At least 15 days' average pay, for termination for poor performance and the employee has at least 1 year of continuous service. |
Per legal requirement for termination due to poor performance. For redundancy, mutual termination or resignation is preferred, with severance of 1-3 months' pay for mid-level employees and 3-6 months' pay for senior employees. |
Benefits | Must be provided through the notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process | Employers are required to follow a fair and reasonable disciplinary process involving a detailed inquiry and tribunal hearing before terminating an employee for misconduct. Employees must be provided a fair opportunity to defend themselves. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss employee immediately without notice due to deliberate misconduct. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period | No notice is needed if misconduct is proven beyond any doubt |
Severance | No. The employee is only entitled to their final pay for days worked. |
Final payment due | Within 30 days after the termination |
How to notify employee |
|
[ACCORDION] Termination due to Poor Performance
What is it | Allows employer to dismiss an employee due to poor performance. |
---|---|
Compliance requirements |
|
Legal notice period |
≥ 30 days' notice |
Severance |
Yes, for employees who have ≥ 1 year of continuous service (i.e. 240 working days).
*Average pay = Average of 3 months prior to termination |
Other payment entitlements |
Employees who have ≥ 1 year of continuous service are also entitled to statutory payments (e.g. pay-in-lieu of notice, leave encashment, gratuity). |
Final payment due | Within 30 days after the termination |
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Compliance requirements |
Employee must submit a resignation letter signed with wet ink ≥ 1 month before their last day. |
Legal notice period | 1 month or the notice period agreed to under the EA, whichever is higher. |
Severance | No legal requirements |
Other payment entitlements |
|
Final payment due | Within 30 days after termination of Employment Agreement |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate the employee’s employment for any reason (including redundancy or other business reasons). |
---|---|
Common reasons |
|
Legal notice period | 30 days or more, as mutually agreed |
Payment in lieu of notice period | Yes, allowed |
Severance | Yes, required based on mutual agreement between the employer and employee. Employers typically offer 1-3 months on top of pay-in-lieu of notice for mid-level employees, and 3-6 months severance for senior-level employees. |
Final payment due | Within 30 days after the termination |
How to notify employee |
|
[ACCORDION] Termination During the Probation Period
What is it | Allows either employer or employee to unilaterally terminate their employment relationship at any time during the probation period. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period |
|
Severance | No legal requirements |
Other payment entitlements | Final pay for days worked |
Final payment due | Within 30 days after termination |
How to notify employee |
|
[/ACCORDION]
[DROPDOWN-OPTION] Indonesia
Indonesia
Terminations in Indonesia are highly complex with a high degree of litigation risk. It is always recommended to terminate employees via mutual termination agreements in Indonesia, due to the high risk of unfair dismissal claims.
Given the complexity of processing terminations in Indonesia, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period: 7 to 14 working days during probation. After probation, 1 month. Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: 1 month. Payment in lieu: Customary. Garden leave: Customary. |
Severance |
Required, as long as the employee is not being terminated for criminality or unexcused absences from work. Basic severance payment is calculated based on years of service:
|
Usually an additional severance payment of at least 6 weeks to 3 months on top of the legal requirement is offered, in exchange for a waiver of future liabilities. |
Benefits | Must continue to accrue through the notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers are required to issue multiple formal warnings or a disciplinary process before termination can be considered for misconduct or poor performance. This process is required to take place over a period of at least 2 consecutive quarters and may extend even longer in certain situations. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows either employer to end their employment relationship immediately without notice due to gross misconduct or poor performance. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period | Depends on the reason for termination.
|
Severance |
Severance is required if:
Severance is not legally required if:
Severance amount consists of:
Basic severance payment* is based on years of service:
Length-of-service award is calculated based on years of service:
*Employees who violated their Employment Agreements or company regulations and have been served a 1st, 2nd and 3rd consecutive warning may only be entitled to 50% of the basic severance payment. **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. |
Final payment due | The date of termination of the Employment Agreement |
How to notify employee |
Can be personally delivered to the employee, or sent via email, registered mail or private courier to the employee's last known address. |
[ACCORDION] Termination for Redundancy or Other Business Reasons
What is it | Allows employer to terminate an employee when their functions, duties and responsibilities no longer exist due to changes to the business operations. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period | 14 working days |
Severance |
Yes, required. Severance amount consists of:
*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. |
Final payment due | The date of termination of the Employment Agreement |
How to notify employee | Can be personally delivered to the employee, or sent via email, registered mail or private courier to the employee's last known address. |
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Compliance requirements | Employee must provide a resignation letter signed with wet ink. |
Legal notice period | 30 days |
Severance | No legal requirements |
Final payment due | The date of termination of the Employment Agreement. |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate the employee’s employment for any reason. |
---|---|
Common reasons |
|
Legal notice period | No legal requirements |
Severance | While no severance is required by law, negotiating a mutual termination agreement will always entail the offer of an additional severance on top of the amount the employee is entitled to by law. The additional severance amount is usually between 6 weeks and 3 months. |
Final payment due | The date of termination of the Employment Agreement. |
[ACCORDION] Termination During the Probation Period
What is it | Allows either employer or employee to terminate their employment relationship unilaterally at any time during the probation period. |
---|---|
Grounds |
|
Compliance requirements |
In Indonesia, the probation period must not be extended or repeated. |
Legal notice period | If initiated by employer, 7 working days' notice is required. |
Severance | No legal requirements |
Final payment due | The date of termination of the Employment Agreement |
How to notify employee | Can be personally delivered to the employee, or sent via email, registered mail or private courier to the employee's last known address. |
[/ACCORDION]
[DROPDOWN-OPTION] Ireland
Ireland
Terminations in Ireland are moderately complex with a high degree of litigation risk.
Given the complexity of processing terminations in Ireland, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period:
Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: Per legal requirements. Payment in lieu: Customary. Garden leave: Customary. |
Severance | Required if the employee has been in service for at least 2 continuous years. | Usually an additional severance payment on top of the statutory minimum is offered, in exchange for a waiver of future liabilities. |
Benefits | Must continue to accrue through the notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers are required to follow a fair and reasonable disciplinary process involving formal warnings, suspension and demotion before termination can be considered for misconduct or poor performance. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss employee due to misconduct, incompetence, legal prohibition or other substantial grounds. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period |
Depends on employee's length of continuous service:
Note: In cases of serious misconduct, employees can be dismissed without notice. |
Payment in lieu of notice period | Yes, allowed |
Severance |
Yes, required for employees with at least 2 years of continuous service.
|
Final payment due | On the normal monthly payslip date |
How to notify employee |
|
[ACCORDION] Termination for Redundancy or Other Business Reasons
What is it | Allows employer to terminate an employee when their functions, duties and responsibilities no longer exist due to changes to the business operations. |
---|---|
Grounds |
|
Compliance requirements |
Employer must offer employee another job within the organization before making employee redundant. |
Legal notice period |
Depends on employee's length of continuous service:
|
Payment in lieu of notice period | Yes, allowed |
Severance |
Yes, required for employees with at least 2 years of continuous service.
|
Other payment entitlements | Any final pay for days worked |
Final payment due | On the normal monthly payslip date |
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Compliance requirements | Employee can provide resignation letter via email with digital/electronic signature. |
Legal notice period |
|
Severance | No legal requirements |
Final payment due | On the normal monthly payslip date |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate the employee’s employment for any reason. |
---|---|
Common reasons |
|
Legal notice period |
Depends on the employee's length of service:
|
Payment in lieu of notice period | Yes, allowed |
Severance | Yes, required. Must be at least 5 weeks' salary plus holidays. |
Final payment due | On the normal monthly payslip date |
How to notify employee |
|
[ACCORDION] Termination During Probation Period
What is it | Allows either employer or employee to unilaterally terminate their employment relationship at any time during the probation period. |
---|---|
Grounds |
|
Legal notice period | No legal requirements |
Severance | No legal requirements |
Other payment entitlements | Final pay for days worked |
Final payment due | On the normal monthly payslip date |
[/ACCORDION]
[DROPDOWN-OPTION] Israel
Israel
Terminations in Israel are highly complex with a high degree of litigation risk.
Given the complexity of processing terminations in Israel, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period:
Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: Per legal requirements. Payment in lieu: Customary. Garden leave: Customary. |
Severance | Severance is paid out every month within the pension fund of the employee. Therefore there is no need to add an additional severance at the end of the employment. | Per legal requirements. |
Benefits | Must be provided through the notice period | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers are required to follow a fair and reasonable disciplinary process involving a summons to a hearing and a formal hearing before termination can be considered. Estimated timeline: 45 days. |
Types of terminations
Please note that Deel does not carry out mutual terminations in Israel.
For any type of termination, a hearing with the employee must be conducted before any termination decisions can be made.
[ACCORDION] Termination With Cause
What is it | Allows employer to end an employment relationship due to misconduct. |
---|---|
Grounds | For indefinite contracts, any valid reason such as:
*Note: This is extremely difficult to justify. |
Compliance requirements |
|
Legal notice period |
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. |
Severance |
For indefinite contracts, the severance is paid out every month within the pension fund of the employee. Therefore there is no need to add an additional severance at the end of the employment of the employee. For fixed-term contracts, the amount of salary the employee would have earned for the remaining contract term. |
Final payment due | On the date of termination |
How to notify employee | Written notice of termination |
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Grounds | No legal requirements |
Compliance requirements | Employee must provide a written, signed resignation letter 1 month before their last day. |
Legal notice period |
1 month. Employee must continue to work during this period*. *If employee does not, the employer can pursue damages against the employee equal to one month's salary. |
Severance |
No legal requirements. |
Final payment due | On the date of termination |
[ACCORDION] Termination During the Probation Period
What is it | Allows employer to terminate their employment relationship at any time during the probation period. |
---|---|
Grounds |
|
Compliance requirements | Termination reason must be fair and based on reasonable and rational grounds. |
Legal notice period |
|
Severance | No legal requirements |
[/ACCORDION]
[DROPDOWN-OPTION] Italy
Italy
Terminations in Italy are highly complex with a high degree of litigation risk. It is always recommended to seek a mutual termination agreement in Italy. Mutual termination agreements always entail payment of a severance above the statutory minimum.
Given the complexity of processing terminations in Italy, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period:
Payment in lieu: Allowed. Garden leave: Not allowed. |
Notice period: 30 days Payment in lieu: Customary. Garden leave: Not customary. |
Severance | Required, and is already a sum set aside each month by the employer under the Trattamento di Fine Rapporto (TFR). | Usually an additional severance payment of 4 to 5 months' salary on top of the TFR is offered, in exchange for a waiver of future liabilities. |
Benefits | Must be provided through the notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process | Employers are required to follow a prescribed disciplinary process before termination can be considered for misconduct. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss employee immediately without notice due to misconduct. |
---|---|
Grounds |
|
Compliance requirements |
Employer must follow a prescribed disciplinary procedure before they can terminate an employee with cause:
|
Legal notice period | No legal requirements |
Severance | Always due in any case of termination in Italy, and is a sum already set aside each month by the employer (known as TFR). |
Other payment entitlements | Payment for all accrued but unused holidays and paid leaves. |
Final payment due | Within 45 days after termination |
How to notify employee |
|
[ACCORDION] Termination for Subjective Reasons, Redundancy or Business Reasons
What is it | Allows employer to terminate an employee when their functions, duties and responsibilities no longer exist due to changes to the business operations, or other subjective reasons (e.g. less serious contractual breaches). |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period |
As stated in Employment Agreement. Otherwise, depends on the employee’s length of service and their level. |
Payment in lieu of notice period |
Yes, allowed |
Severance | Always due in any case of termination in Italy, and is a sum already set aside each month by the employer (known as TFR). |
Other payment entitlements | All accrued but unused holidays and paid leaves. |
Final payment due | 45 days after the termination of the employment agreement. |
How to notify employee | The termination letter can be sent by email, and the signature of both parties can be digital/electronic |
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time by providing the required notice. |
---|---|
Compliance requirements |
|
Legal notice period |
As stated in Employment Agreement. Otherwise, length of notice depends on employee's length of service and level of seniority. Employer may waive this notice at their discretion. |
Severance | Always due in any case of termination in Italy, and is a sum already set aside each month by the employer (known as TFR). |
Other payment entitlements | All accrued but unused holidays and paid leaves. |
Final payment due | 45 days after termination |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate the employee’s employment for any reason. |
---|---|
Common reasons |
|
Legal notice period | As stated in Employment Agreement. |
Payment in lieu of notice period |
Yes, allowed. Generally this payment includes:
*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 Group. |
Severance | Usually an additional severance payment of 4 to 5 months' salary on top of the TFR is offered, in exchange for a waiver of future liabilities. |
Other payment entitlements |
All accrued but unused holidays and paid leaves |
Final payment due | 45 days after termination |
[ACCORDION] Termination During the Probationary Period
What is it | Allows employer to terminate an employee at any time during the probation period, if the employee is found to be unsuitable for the position. |
---|---|
Grounds | No legal requirements |
Compliance requirements |
|
Legal notice period | No legal requirements |
Severance | If the employee worked more than 14 days, severance (TFR) must be paid. |
Final payment due | 45 days after termination |
[/ACCORDION]
[DROPDOWN-OPTION] Japan
Japan
Terminations in Japan are highly complex with a high degree of litigation risk. It is always recommended to terminate employees via mutual termination agreements in Japan, as it is almost impossible to carry out a termination compliantly.
Given the complexity of processing terminations in Japan, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period: 30 days. Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: Usually negotiated as part of mutual termination agreements. Payment in lieu: Customary. Garden leave: Not customary. |
Severance | None required. | Usually a severance payment of 6 months' salary is offered, in exchange for a waiver of future liabilities. |
Benefits | Must continue to accrue until the end of notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers are required to follow a fair and reasonable disciplinary process involving an investigation by a panel and providing the employee an opportunity to explain themselves, before termination can be considered for misconduct. The proof of cause must be highlighted in the company handbook. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss an employee immediately without notice due to serious misconduct. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period | No legal requirements |
Severance | No legal requirements |
Final payment due | 14 days after termination |
How to notify employee |
|
[ACCORDION] Termination for Redundancy or Other Business Reasons
Please note that terminations for redundancy is not possible in Japan if Deel is the EOR. In such situations, please refer to Mutual Terminations.
What is it | Allows employer to terminate an employee due to redundancy or other business reasons (e.g. underperformance). |
---|---|
Grounds |
|
Compliance requirements |
For redundancy, the following conditions must be met:
If the above conditions are not met, employers may want to consider other alternatives e.g. voluntary resignation, early retirement plans (see mutual terminations).
For underperformance:
|
Legal notice period | 30 days' notice |
Payment in lieu of notice period | Yes, allowed |
Severance | No legal requirements, but typically compensation payments are made. |
Final payment due | 7 days after termination |
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows employee to resign at any time in accordance with their employment agreement. |
---|---|
Grounds | No legal requirements |
Compliance requirements | Employee must provide a written resignation letter with their signature, shared at least 30 days before their last day. |
Legal notice period | 30 days |
Severance | No legal requirements |
Final payment due | 14 days after termination |
[ACCORDION] Mutual Termination
What is it | Allows employer and employee to mutually agree to terminate their employment relationship at any time. |
---|---|
Grounds |
|
Legal notice period | As mutually agreed |
Severance | Yes, required. Amount must be higher than what is legally required. Usually 6 months, but up to mutual agreement. |
Final payment due | Within 7 days after request from employee for payment |
How to notify employee |
|
[ACCORDION] Termination During Probation Period
Please note that in Japan, terminations during the probation period can be extremely challenging to justify legally. As such, it is recommended to seek a mutual termination agreement instead.
What is it | Allows employer or employee to end their employment relationship during the probation period. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period | 30 days' notice |
Severance | No legal requirements |
Final payment due | Within 7 days after request from employee for payment |
How to notify employee |
|
[/ACCORDION]
[DROPDOWN-OPTION] Kenya
Kenya
Terminations in Kenya are highly complex with a high degree of litigation risk. It is always recommended to terminate employees via mutual termination agreements in Kenya, due to the high risk of unfair dismissal claims/litigation.
Given the complexity of processing terminations in Kenya, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period: 1 month (4 weeks). Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: Per legal requirements. Payment in lieu: Customary. Garden leave: Not customary. |
Severance | Required if termination reason is redundancy. Amount is 15 days; pay for each completed year of service. | Usually an additional severance payment is offered on top of the legal minimum, in exchange for a waiver of future liabilities. |
Benefits | Must continue to accrue until the end of notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers are required to follow a fair and reasonable disciplinary process involving multiple formal warnings before termination can be considered for misconduct or poor performance. |
[DROPDOWN-OPTION] Latvia
Latvia
Terminations in Latvia are highly complex with a high degree of litigation risk. It is always recommended to terminate employees via mutual termination agreements in Latvia, due to the high risk of unfair dismissal claims/litigation.
Given the complexity of processing terminations in Latvia, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period during probation: 3 days. Notice period after probation:
Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: Per legal requirements. Payment in lieu: Customary. Garden leave: Customary. |
Severance |
Required if termination reason is redundancy.
|
Usually an additional severance payment is offered on top of the legal minimum, in exchange for a waiver of future liabilities. |
Benefits | Must continue to accrue until the end of notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers are required to follow a fair and transparent disciplinary process including a proper investigation and providing the employee an opportunity to respond to the allegations, before termination can be considered for misconduct. Employers are also required to document all relevant incidents, warnings and disciplinary actions taken are required. The termination decision must be proportionate to the offense committed. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss an employee immediately without notice due to serious misconduct. |
---|---|
Grounds |
|
Compliance requirements |
Employer must follow a fair and transparent disciplinary process. Compliance requirements may include:
|
Legal notice period | No legal requirements |
Severance | No legal requirements |
Final payment due | Last working day |
How to notify employee |
|
[ACCORDION] Termination due to Redundancy or Other Business Reasons
What is it | Allows employer to terminate an employee due to redundancy or other business reasons. |
---|---|
Grounds |
|
Compliance requirements |
Employer must:
|
Legal notice period |
The minimum notice periods are as follows:
|
Severance |
|
Final payment due | Last working day |
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Grounds | No legal requirements |
Compliance requirements | Employee must provide a written resignation letter with the effective date of resignation. |
Legal notice period | At least 1 month |
Severance | No legal requirements |
Final payment due | Last working day |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate their employment relationship for any reason. |
---|---|
Common reasons |
|
Legal notice period | As mutually agreed |
Severance | Yes, required. Amount must be higher than what is legally required. |
Final payment due | Last working day |
[ACCORDION] Termination During Probation Period
What is it | Allows employer to terminate their employment relationship at any time during the probation period. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period | 3 days of notice period |
Severance | No legal requirements |
Final payment due |
Last working day
|
How to notify employee |
|
[/ACCORDION]
[DROPDOWN-OPTION] Lithuania
Lithuania
Terminations in Lithuania are highly complex with a high degree of litigation risk. It is always recommended to terminate employees via mutual termination agreements in Lithuania, due to the high risk of unfair dismissal claims/litigation.
Given the complexity of processing terminations in Lithuania, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period during probation: 3 days. Notice period after probation:
*The above notice periods shall be adjusted for special circumstances as follows:
Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: Per legal requirements. Payment in lieu: Customary. Garden leave: Not customary. |
Severance |
Required if termination reason is redundancy.
|
Usually an additional severance payment is offered on top of the legal minimum, in exchange for a waiver of future liabilities. |
Benefits | Must continue to accrue until the end of notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers are required to follow a fair and lawful disciplinary process including an investigation, disciplinary meetings or hearings, and providing the employee with an opportunity to defend themselves, before termination can be considered for misconduct or poor performance. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss an employee immediately without notice due to serious misconduct. |
---|---|
Grounds |
|
Compliance requirements |
Employer should follow a fair and lawful disciplinary process, which includes:
|
Legal notice period |
No legal requirements
|
Severance |
No legal requirements |
Final payment due | Last working day |
How to notify employee |
|
[ACCORDION] Termination due to Redundancy or Other Business Reasons
What is it | Allows employer to terminate an employee due to redundancy or other business reasons. |
---|---|
Grounds |
|
Compliance requirements |
Employer must:
|
Legal notice period |
|
Severance |
Yes, required, depending on employee's length of service:
|
Final payment due | Last working day |
How to notify employee | Written notice with reasons for termination, effective termination date and details regarding final payments. |
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Grounds | No legal requirements |
Compliance requirements | Employee must provide a written resignation letter with the effective date of resignation. |
Legal notice period | 20 calendar days in advance (unless the employer agrees to a shorter notice period). |
Severance | No legal requirements |
Final payment due | Last working day |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate their employment relationship for any reason. |
---|---|
Common reasons |
|
Legal notice period | As mutually agreed |
Severance | Yes, required. Amount must be higher than what is legally required. |
Final payment due | As mutually agreed |
[ACCORDION] Termination During Probation Period
What is it | Allows employer to terminate their employment relationship at any time during the probation period. |
---|---|
Grounds |
|
Compliance requirements | No legal requirements |
Legal notice period | 3 days of notice period during the probation (for both the employee and the employer |
Severance | No legal requirements |
Final payment due |
Last working day
|
How to notify employee | Written notice with termination date |
[/ACCORDION]
[DROPDOWN-OPTION] Malaysia
Malaysia
Terminations in Malaysia are not very complex with a moderate degree of litigation risk.
Given the degree of litigation risk from terminations in Malaysia, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period:
Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: More than 2 months. Payment in lieu: Customary. Garden leave: Customary. |
Severance |
Required if termination reason is redundancy. Amount is calculated by multiplying monthly wages by the employee’s years of service, and dividing it by two. For other termination reasons, severance may be owed per any applicable collective agreements, or if the employee earns less than 4,000 RM per month. |
Usually an additional severance payment is offered on top of the legal minimum, in exchange for a waiver of future liabilities. |
Benefits | Must continue to accrue until the end of notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process | Employers are required to follow and document a fair and reasonable disciplinary process involving proper investigations and providing the employee an opportunity to respond to the allegations before termination can be considered for misconduct or persistent poor performance. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss an employee immediately without notice due to serious misconduct. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period | No legal requirements. However, may be provided for in the employment agreement or collective agreements if applicable. |
Severance | No legal requirements. However, severance may be owed in accordance with collective agreements if applicable, or if employee earns less than 4,000 RM per month. |
Final payment due | Within 7 days after termination |
How to notify employee |
|
[ACCORDION] Termination due to Redundancy or Other Business Reasons
Please note that if Deel is the EOR, terminations due to redundancy is not possible in Malaysia. In such cases, please refer to Mutual Terminations.
What is it | Allows employer to terminate an employee due to redundancy or other business reasons. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period |
Varies depending on length of service:
|
Payment in lieu of notice period | Yes, allowed. Payment must be equivalent to the salary and benefits the employee would have received during the notice period. |
Severance |
Severance is calculated as follows: (Monthly wages × years of service) ÷ 2
|
Final payment due | Within 7 days after termination |
Other payment entitlements | Outstanding salary, allowances, accrued and unused leave days |
How to notify employee |
|
[ACCORDION] Resignation
What is it | An employee may resign at any time in accordance with their employment agreement. |
---|---|
Grounds | No legal requirements |
Compliance requirements | Employee must submit their resignation in writing, either in person, by email or registered mail. |
Legal notice period | As stated in employment agreement. Typically 1-3 months. |
Severance | No legal requirements, unless stated in employment agreement or collective agreement if applicable, or if employee earns less than 4,000 RM per month. |
Final payment due | Within 7 days of termination |
Other payment entitlements | Outstanding salary, allowances, accrued and unused leave |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate their employment relationship for any reason. |
---|---|
Common reasons |
|
Legal notice period | As mutually agreed |
Severance | Yes, required. Amount must be higher than what is legally required. |
Final payment due | As mutually agreed |
[ACCORDION] Termination During Probation Period
What is it | Allows employer to terminate their employment relationship at any time during the probation period. |
---|---|
Grounds |
|
Compliance requirements | No legal requirements. However, it is recommended to document any performance or conduct issues and follow proper internal procedures such as providing feedback, counseling or warnings to the employee if necessary, before termination. |
Legal notice period | As stated in employment agreement. Typically 1 day to 1 week's notice. |
Severance | No legal requirements, unless if employee earns less than 4,000 RM per month. |
Final payment due | Within 7 days after termination |
Other payment entitlements | All outstanding salary, allowances and other entitlements |
How to notify employee | Written notice. Via email with digital/electronic signature is allowed |
[/ACCORDION]
[DROPDOWN-OPTION] Malta
Malta
❗High Complexity | Inform Deel at least 30 days before initiating any termination. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss an employee immediately without notice due to serious misconduct. |
---|---|
Grounds |
|
Legal notice period | No legal requirements |
Severance | No legal requirements |
Final payment due | No legal requirements. However it is Deel practice to make any balance payments at the end of the terminating month. |
How to notify employee |
|
[ACCORDION] Termination for Redundancy or Other Business Reasons
What is it | Allows employer to terminate an employee due to redundancy or other business reasons. |
---|---|
Grounds | Business reasons - the employer has ceased, or intends to cease, to carry on the business for the purposes for which the employee was employed. |
Compliance requirements |
If due to redundancy: When there is more than one employee with identical functions, the selection criteria of which employee to be made redundant must be based on who was engaged most recently (i.e. ‘last in first out’). |
Legal notice period |
Varies depending on length of service:
|
Severance | No legal requirements |
Final payment due | No legal requirements. However it is Deel practice to make any balance payments at the end of the terminating month. |
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Grounds | No legal requirements |
Compliance requirements | Employee must provide written resignation letter with their signature. |
Legal notice period |
Varies depending on length of service:
|
Severance | No legal requirements |
Final payment due | No legal requirements. However it is Deel practice to make any balance payments at the end of the terminating month. |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate their employment relationship for any reason. |
---|---|
Common reasons |
|
Legal notice period |
Varies depending on length of service:
|
Severance | Yes, required. Amount must be higher than what is legally required. |
Final payment due | No legal requirements. However it is Deel practice to make any balance payments at the end of the terminating month. |
[ACCORDION] Termination During Probation Period
What is it | Allows employer to terminate their employment relationship at any time during the probation period. |
---|---|
Grounds | No legal requirements |
Compliance requirements | No legal requirements |
Legal notice period |
|
Severance | No legal requirements |
Final payment due | No legal requirements. However it is Deel practice to make any balance payments at the end of the terminating month. |
How to notify employee |
|
[/ACCORDION]
[DROPDOWN-OPTION] Mexico
Mexico
Terminations in Mexico are highly complex with a high degree of litigation risk. It is always recommended to seek a mutual termination agreement in Mexico. Mutual termination agreements always entail payment of a severance above the statutory minimum.
Given the complexity of processing terminations in Mexico, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period: There are no notice periods in Mexico. Payment in lieu: Not allowed. Garden leave: Not allowed. |
Notice period: There are no notice periods in Mexico. Payment in lieu: Not customary. Garden leave: Not customary. |
Severance | Required for terminations without cause. Severance amount is 3 months’ salary, plus 20 days’ salary per year of service, and 12 days’ salary per year as a seniority premium. | Required for mutual termination agreements, in exchange for a waiver of future liabilities. |
Benefits | Must be provided through the notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process | None required. |
Types of terminations
For terminations due to business reasons and redundancy, please refer to Mutual Termination.
[ACCORDION] Termination with Cause
What is it | Allows employer to dismiss an employee due to misconduct. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period | No legal requirements |
Severance | No legal requirements |
Final payment due | On date of termination, or on the date agreed to in writing with the employee |
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time by providing a signed resignation letter. |
---|---|
Legal notice period | No legal requirements |
Severance | No legal requirements |
Final payment due | On the date of termination, or any other date agreed to in writing with the employee. |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate the employee’s employment for any reason (in Mexico, this includes business reasons or redundancy). |
---|---|
Common reasons |
|
Legal notice period | No legal requirements |
Severance | Yes, required |
Final payment due | On the date of termination, or any other date agreed in writing with the employee |
[ACCORDION] Termination During the Probation Period
What is it | Allows either employer to terminate an employee at any time during the probation period due to unsuitability for the position. |
---|---|
Compliance requirements |
|
Legal notice period | No legal requirements |
Severance | No legal requirements |
Other payment entitlements | Final pay for days worked |
Final payment due | On the date of termination, or any other date agreed in writing with the employee |
[/ACCORDION]
[DROPDOWN-OPTION] Morocco
Morocco
❗High Complexity | Inform Deel at least 30 days before initiating any termination. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss an employee immediately without notice due to serious misconduct. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period |
|
Severance | No legal requirements |
Final payment due | No legal requirements, but good practice to make payment ASAP or at least within the month of termination. |
How to notify employee | Written notice |
[ACCORDION] Termination due to Redundancy or Other Business Reasons
What is it | Allows employer to terminate an employee due to redundancy or other business reasons. |
---|---|
Grounds |
|
Compliance requirements |
If due to redundancy,
|
Legal notice period |
If employee is an executive:
If employee is not an executive:
|
Severance |
Yes, required for employees with at least 6 months' service:
|
Final payment due | No legal requirements, but good practice to make payment ASAP or at least within the month of termination. |
How to notify employee | Written notice |
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Grounds | No legal requirements |
Compliance requirements | Employee must provide written notice. |
Legal notice period |
If employee is an executive:
If employee is not an executive:
|
Severance | No legal requirements |
Final payment due | No legal requirements, but good practice to make payment ASAP or at least within the month of termination. |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate their employment relationship for any reason. |
---|---|
Common reasons |
|
Legal notice period |
If employee is an executive:
If employee is not an executive:
|
Severance | Yes, required. Amount must be higher than what is legally required. |
Final payment due | No legal requirements, but good practice to make payment ASAP or at least within the month of termination. |
[ACCORDION] Termination During Probation Period
What is it | Allows employer to terminate their employment relationship at any time during the probation period. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period |
As stated in employment agreement. Otherwise:
|
Severance | No legal requirements |
Final payment due | No legal requirements, but good practice to make payment ASAP or at least within the month of termination. |
How to notify employee | Written notice |
[/ACCORDION]
[DROPDOWN-OPTION] Netherlands
Netherlands
Terminations in the Netherlands are highly complex with a high degree of litigation risk.
Generally, employers cannot unilaterally terminate an employee in the Netherlands without the permission of the Courts or the Dutch Unemployment Agency (UWV). As such, in most cases, it is necessary to seek a mutually agreed termination or settlement that will involve payment above the statutory minimum severance.
Given the complexity of processing terminations in the Netherlands, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period: Can only be given after permission for termination has been granted by the Dutch court or Labor Agency. Payment in lieu: Allowed Garden leave: Allowed |
Notice period:
Payment in lieu: Not customary. Garden leave: Customary. |
Severance | Required if termination is on the initiative of the employer. | Usually 2-6 months’ salary. |
Benefits | Must be provided through the notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers are required to obtain the permission of the Dutch court with an extensively documented basis for termination, including performance improvement plans, before termination can be considered for misconduct, poor performance, or business reasons. |
Types of terminations
[ACCORDION] Terminations Based on Employee Performance or Behavior
What is it | Allows employer to dismiss an employee due to misconduct or persistent job performance issues. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period |
It is not possible to unilaterally terminate an employee by providing notice. Notice can only be given after permission for termination has been granted by the Dutch court or Labor Agency. In rare cases of fraud, theft, or violence in the workplace it may be possible to terminate an employee with immediate effect. |
Severance |
Yes, required, except in rare cases requiring immediate dismissal (fraud, theft, violence). Additional payment to secure a negotiated settlement absent a court decision will also be required. |
[ACCORDION] Terminations Based on Business Reasons
What is it | Allows employer to end an employment relationship due to business reasons. |
---|---|
Grounds |
Business (economical) reasons (e.g. company downsizing, restructuring, organizational/technological reasons, business closure). |
Compliance requirements |
|
Legal notice period | It is not possible to unilaterally terminate an employee by providing notice. Notice can only be given after permission for termination has been granted by the Dutch court or Labor Agency. |
Severance |
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. |
[ACCORDION] Resignation
What is it | Allows employee to resign at any time. |
---|---|
Grounds | No legal requirements |
Compliance requirements | Employee must provide written notice via a resignation letter. |
Legal notice period | As stated in Employment Agreement. If not, 1 month minimum. |
Severance | No legal requirements |
[ACCORDION] Mutually Agreed Termination or Settlement
What is it |
Allows both the employer and employee to mutually agree to terminate the employee’s employment for any reason. Note: This termination type allows employers to avoid the formal process of seeking permission from the Courts or the Dutch Unemployment Agency, and is the preferred course of action for any employer wishing to terminate an employee for any reason. |
---|---|
Grounds | No legal requirements |
Compliance requirements | None |
Legal notice period | As agreed with employee |
Severance | Yes, at a mutually agreed amount higher than the legal requirement. |
[ACCORDION] Termination During the Probationary Period
What is it | Allows either the employer or employee to end their employment relationship at any time during the probation period, without the permission of the courts or the Dutch Unemployment Office. |
---|---|
Grounds | No legal requirements |
Compliance requirements | Termination must not be a result of prohibited discriminatory reasons. |
Legal notice period | No legal requirements |
Severance | Yes, required. Amount of severance is approximately 1/3 monthly salary per year of service. |
[/ACCORDION]
[DROPDOWN-OPTION] New Zealand
New Zealand
Terminations in New Zealand are highly complex with a high degree of litigation risk. It is always recommended to terminate employees via mutual termination agreements in New Zealand, due to the high risk of personal grievance claims.
Given the complexity of processing terminations in New Zealand, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period: No specific requirements, but must be fair and reasonable. Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: 4 weeks. Payment in lieu: Customary. Garden leave: Customary. |
Severance | None. | Usually an additional severance payment is offered, in exchange for a waiver of future liabilities. |
Benefits | Must continue to accrue until the end of notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers are required to follow a fair and reasonable disciplinary process before termination can be considered for repeated misconduct or persistent poor performance. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss an employee due to misconduct or persistent poor performance. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period | No legal requirements, however disciplinary processes or performance management plans must have been implemented before carrying out termination. |
Severance | No legal requirements |
Other payment entitlements | Final pay for days worked |
Final payment due | On or before the pay day of their final period of employment |
How to notify employee |
|
[ACCORDION] Termination for Redundancy or Other Business Reasons
What is it | Allows employer to terminate an employee when their functions, duties and responsibilities no longer exist due to changes to the business operations. |
---|---|
Grounds |
|
Compliance requirements | Employers must exhaust all redeployment options before terminating an employee for redundancy. |
Legal notice period | As stated in Employment Agreement. Otherwise, reasonable notice must be given. |
Severance | No legal requirements |
Other payment entitlements | Final pay for days worked |
Final payment due | On or before the pay day of their final period of employment |
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time in accordance with their Employment Agreement. |
---|---|
Grounds | No legal requirements |
Compliance requirements | Employee must provide a written resignation letter signed with wet ink. |
Legal notice period | As stated in Employment Agreement |
Severance | No legal requirements |
Other payment entitlements | Final pay for days worked |
Final payment due | On or before the pay day of their final period of employment |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate the employee’s employment for any reason. |
---|---|
Grounds |
|
Legal notice period | No legal requirements |
Severance | Yes, required |
Final payment due | On the payday of the employee’s final pay period |
[ACCORDION] Termination During the Probation Period
What is it | Allows employer to terminate their employment relationship at any time during the probation period, due to poor performance. |
---|---|
Grounds |
|
Legal notice period | As stated in Employment Agreement |
Severance | No legal requirements |
Other payment entitlements | Final pay for days worked |
Final payment due | On the payday of the employee’s final pay period |
How to notify employee | 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. |
[/ACCORDION]
[DROPDOWN-OPTION] Norway
Norway
Terminations in Norway are highly complex with a high degree of litigation risk. It is always recommended to terminate employees via mutual termination agreements in Norway, due to the high risk of unfair dismissal claims/litigation.
Due to the significant increase in complexity of terminations after probation, it is recommended to evaluate employees seriously during the probation period and contact Deel if termination is being considered.
Given the complexity of processing terminations in Norway, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period during probation: 14 days. Notice period after probation:
Payment in lieu: Not allowed. Employees have a statutory right to their salary and to continue to work during their notice period. Garden leave: Allowed. |
Notice period: Per legal requirements. Payment in lieu: Not applicable. Garden leave: Customary. |
Severance | None required. | Usually a severance payment is offered in exchange for a waiver of future liabilities. |
Benefits | Must continue to accrue until the end of notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers are required to follow a fair and reasonable disciplinary process involving multiple formal warnings before termination can be considered for misconduct or poor performance. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss an employee immediately without notice due to serious misconduct. |
---|---|
Grounds |
|
Compliance requirements | Proof of cause must be highlighted in the company handbook |
Legal notice period | As stated in employment agreement |
Severance | No legal requirements |
Final payment due | On date of termination or as mutually agreed |
How to notify employee |
|
[ACCORDION] Termination due to Redundancy or Other Business Reasons
What is it | Allows employer to terminate an employee due to redundancy or other business reasons. |
---|---|
Grounds | Business Reasons (Eg. company downsizing, restructuring) |
Compliance requirements |
|
Legal notice period |
At least 1 month, or as stated in employment agreement. Depending on length of service and age of employee, the following statutory requirements may also apply:
Please note: Employees are entitled to work during their notice period and receive their pay as usual. |
Severance |
No legal requirements |
Final payment due | No legal requirements |
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Grounds | No legal requirements |
Compliance requirements | Employee must provide a resignation letter with their signature. |
Legal notice period |
At least 1 month, or as stated in employment agreement. Depending on length of service and age of employee, the following statutory requirements may also apply:
Please note: Employees are entitled to work during their notice period and receive their pay as usual. |
Severance | No legal requirements |
Final payment due | No legal requirements |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate their employment relationship for any reason. |
---|---|
Common reasons |
|
Legal notice period | As mutually agreed |
Severance | Yes, required. Amount must be higher than what is legally required. |
Final payment due | As mutually agreed |
[ACCORDION] Termination During Probation Period
What is it | Allows employer to terminate their employment relationship at any time during the probation period. |
---|---|
Grounds |
|
Legal notice period | At least 14 days |
Severance | No legal requirements |
Final payment due | No legal requirements |
How to notify employee |
|
[/ACCORDION]
[DROPDOWN-OPTION] Romania
Romania
Terminations in Romania are highly complex with a moderate degree of litigation risk.
Given the complexity of processing terminations in Romania, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period: Maximum 20 working days for regular positions, and maximum 45 working days for management positions. Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: Per legal requirements. Payment in lieu: Customary. Garden leave: Customary. |
Severance | None required. | Usually a severance payment is offered in exchange for a waiver of future liabilities. |
Benefits | Must continue to accrue until the end of notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers are required to follow a fair and reasonable disciplinary process including providing the employee an opportunity to defend themselves with the assistance of a union representative if the employee wishes, before termination can be considered for misconduct. |
Types of Terminations
[ACCORDION] Dismissal
What is it | Allows employers to dismiss an employee immediately without notice due to employee conduct, inability or business reasons. |
---|---|
Grounds |
*The employer must issue the termination decision within 30 calendar days after discovering the cause for termination. |
Compliance requirements |
|
Legal notice period |
If termination is due to physical/mental incapacity, employee being professionally unfit, or redundancy, at least 20 working days' notice is required. Otherwise, no notice is required. |
Severance | No legal requirements. |
Final payment due | On the date of termination. |
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Grounds | No legal requirements. |
Compliance requirements | No legal requirements. |
Legal notice period |
As stated in the Employment Agreement. Must not be more than 20 working days for employees in executive positions, or 45 working days for employees in management positions. An employee may resign without a notice if his employer has not met his obligations according to the individual labour contract. |
Severance | No legal requirements. |
Final payment due | On the date of termination. |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate their employment relationship for any reason. |
---|---|
Common reasons |
|
Legal notice period | As mutually agreed |
Severance | Yes, required. Amount must be higher than what is legally required and mutually agreed on. |
Final payment due | As mutually agreed |
[ACCORDION] Termination During Probation Period
What is it | Allows either the employer or employee to terminate their employment relationship at any time during the probation period. |
---|---|
Grounds |
No legal requirements, but generally due to employee performance, behavior or compatibility with the job or workplace. |
Compliance requirements |
While there are no specific compliance requirements for terminating an employee during the probation period in Romania, it is advisable for employers to follow fair and transparent practices, such as having clearly stated probationary terms, regular performance feedback and documenting performance issues. |
Legal notice period | No legal requirements. |
Severance | No legal requirements. |
Final payment due | On date of termination. |
How to notify employee |
|
[/ACCORDION]
[DROPDOWN-OPTION] Russia
Russia
Terminations in Russia are highly complex with a high degree of litigation risk.
Given the complexity of processing terminations in Russia, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period:
Payment in lieu: Not allowed, as this is not a recognized concept under Russia legislation. Garden leave: Not allowed, as this is not a recognized concept under Russia legislation. |
Notice period: 1 month. Payment in lieu: Not customary. Garden leave: Not customary. |
Severance |
Required. Amount varies based on the termination reason.
|
Usually an additional severance payment on top of the legal requirement is offered, in exchange for a waiver of future liabilities. |
Benefits | Must continue to accrue through the notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
None required. |
Types of terminations
[ACCORDION] Termination on the Employer's Initiative
What is it | Allows employer to dismiss employee due to various reasons, including deliberate misconduct and redundancy. |
---|---|
Grounds |
*Only considered valid grounds if it is impossible to transfer affected employee to a different job position. For remote employees, only the following grounds would be considered valid for this type of termination:
|
Compliance requirements |
|
Legal notice period |
Varies depending on termination reason.
Note: In Russia, the notice period does not depend on the length of employment. |
Payment in lieu of notice period |
Yes, allowed in cases of business closure or reduction of staff:
|
Severance |
If due to business closure or redundancy:
If due to other non-disciplinary reasons/not related to misconduct**, employee is entitled to 2 weeks' average salary. If due to disciplinary reasons, no severance is required. *Employee must have applied to the employment service within first 2 weeks of termination, and failed to find a job. **E.g. Employee having medical condition and declines to be transferred to another job or employer does not have an appropriate job to offer; employee being called to military service (or alternative civil service); reinstatement of an employee who previously occupied that position; employee's refusal to be transferred to a job in another location; employee is recognised as being fully incapable due to their medical condition; employee refusing to continue working following a change in employment agreement. |
Final payment due | On the date of termination |
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows employee to resign at any time in accordance with their employment agreement. |
---|---|
Grounds | No legal requirements |
Compliance requirements |
|
Legal notice period | At least 2 weeks. Can be waived or reduced if mutually agreed. |
Severance | No legal requirements |
Final payment due | On the date of termination |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate the employee’s employment for any reason (including redundancy or other business reasons). |
---|---|
Common reasons |
|
Compliance requirements |
Employee cannot be forced into a mutual termination agreement; it must be truly mutual. |
Legal notice period | As mutually agreed |
Severance | Yes, required. Amount must be higher than what is legally required. |
Final payment due | On date of termination |
[ACCORDION] Termination During Probation Period
What is it | Allows either employer or employee to unilaterally terminate their employment relationship at any time during the probation period. |
---|---|
Grounds |
|
Compliance requirements | No legal requirements |
Legal notice period | At least 3 days |
Severance | No legal requirements |
Final payment due | On the date of termination |
How to notify employee |
|
[/ACCORDION]
[DROPDOWN-OPTION] Pakistan
Pakistan
Terminations in Pakistan are not very complex with a low degree of litigation risk.
Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period: 30 days. Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: Per legal requirements. Payment in lieu: Customary. Garden leave: Not customary. |
Severance | Required if termination reason is redundancy. There is no fixed formula for calculating the severance amount, and it can vary on a case-by-case basis. | Usually an additional severance payment is offered on top of the legal minimum, in exchange for a waiver of future liabilities. |
Benefits | Must continue to accrue until the end of notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers are required to follow a fair and reasonable disciplinary process including conducting an investigation, providing the employee with an opportunity to respond and holding a disciplinary hearing if needed, before termination can be considered for misconduct or poor performance. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss an employee immediately without notice due to serious misconduct. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period | No legal requirements |
Severance | No legal requirements |
Final payment due | As soon as possible after the date of termination |
How to notify employee |
|
[ACCORDION] Termination due to Redundancy or Other Business Reasons
What is it | Allows employer to terminate an employee due to redundancy or other business reasons. |
---|---|
Grounds |
|
Compliance requirements |
Employers should follow a fair and reasonable process, which typically involves:
|
Legal notice period | Depends on the employment agreement or collective bargaining agreement if applicable. Otherwise, generally it ranges from 30 to 90 days depending on industry practices. |
Severance | Yes, required. However there is no fixed formula for calculating severance payment and it can vary on a case by case basis. |
Final payment due | Within a reasonable timeframe after the termination |
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Grounds | No legal requirements |
Compliance requirements | Employee must provide a written resignation letter with the effective date of resignation. |
Legal notice period | As stated in the employment agreement. (Note: Industry standard is 30 days minimum notice period.) |
Severance | No legal requirements, but all Provident Fund or gratuity payments must be paid. |
Final payment due | On or before the last day of employment |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate their employment relationship for any reason. |
---|---|
Common reasons |
|
Legal notice period | As mutually agreed |
Severance | Yes, required. Amount must be higher than what is legally required. |
Final payment due | As mutually agreed |
[ACCORDION] Termination During Probation Period
What is it | Allows employer to terminate their employment relationship at any time during the probation period. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period | No legal requirements. Typically between a few days and 1 week, or as stated in employment agreement |
Severance | No legal requirements |
Final payment due | On or before the last date of employment |
How to notify employee | Written notice with reasons for termination |
[/ACCORDION]
[DROPDOWN-OPTION] Peru
Peru
Terminations in Peru are moderately complex with a moderate degree of litigation risk.
Given the complexity of processing terminations in Peru, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period: None for terminations without just cause. Only applies in terminations due to certain cases of misconduct. Payment in lieu: Not allowed. Garden leave: Allowed. |
Notice period: Per legal requirements. Payment in lieu: Not customary. Garden leave: Customary. |
Severance |
Required if termination reason is redundancy. The amount is typically calculated as 1.5 month's salary for each year of service, up to a maximum of 12 years of service. Employees may be entitled to additional compensation if specified in collective bargaining agreements or employment agreements. |
Usually an additional severance payment is offered on top of the legal minimum, in exchange for a waiver of future liabilities. |
Benefits | Must continue to accrue until the end of the employment relationship. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers are required to follow a fair and legal disciplinary process involving a thorough investigation and provide the employee with an opportunity to defend themselves, before termination can be considered for misconduct. Termination must be proportionate to the misconduct, and should be reasonable and justified given the circumstances. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss an employee immediately without notice due to serious misconduct. |
---|---|
Known locally as | Despido por causa justa |
Grounds |
|
Compliance requirements |
|
Legal notice period | Employer must send a letter of notice of dismissal to the employee to give them at least 6 days to defend themselves, or 30 calendar days to demonstrate their ability or correct their deficiency (e.g. in the case of performance). |
Severance | No legal requirements |
Final payment due | Within 48 hours after termination |
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Grounds | No legal requirements |
Compliance requirements | Employee must provide a written resignation letter with the effective date of resignation. |
Legal notice period | At least 1 month |
Severance | No legal requirements |
Final payment due | As soon as possible within the next few days after the termination date, or by the next regular payroll cycle. |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate their employment relationship for any reason. |
---|---|
Common reasons |
|
Legal notice period | As mutually agreed |
Severance | Yes, required. Amount must be higher than what is legally required. |
Final payment due | As mutually agreed |
[ACCORDION] Termination During Probation Period
What is it | Allows employer to terminate their employment relationship at any time during the probation period. |
---|---|
Known locally as | Terminación durante el periodo de prueba |
Grounds |
|
Compliance requirements | No legal requirements |
Legal notice period | No legal requirements. As stated in employment agreement or collective bargaining agreement. |
Severance | No legal requirements |
Final payment due | As soon as possible, or by the next regular payroll cycle. |
How to notify employee | Written notice is not required by law, but it is recommended for the employer to provide one for the record. |
[/ACCORDION]
[DROPDOWN-OPTION] Philippines
Philippines
Terminations in the Philippines are moderately complex with a high degree of litigation risk. Terminations frequently involve a payment of severance above the statutory minimum in exchange for a waiver of liability.
Given the complexity of processing terminations in the Philippines, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period: At least 30 days for termination due to redundancy. Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: Per legal requirements. Payment in lieu: Not customary. Garden leave: Not customary. |
Severance | 1 month’s salary, or 1 month’s salary for every year of service, whichever is higher. | Usually the amount is 1 month’s salary higher than the statutory requirements in exchange for a waiver of future liabilities. |
Benefits | Must be provided through the notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
|
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss an employee due to misconduct. |
---|---|
Grounds |
|
Compliance requirements |
Employers must follow a multi-step disciplinary process before carrying out termination:
|
Legal notice period | No legal requirements, but disciplinary process must be followed before carrying out termination. |
Severance |
No legal requirements 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. |
Other payment entitlements |
Employee is entitled to receive usual salary during period of disciplinary process. In cases of imminent threat to the employer or co-worker’s life or property, employers may place an employee on unpaid preventative suspension for ≤30 days. |
Final payment due | Within 30 days from termination |
How to notify employee |
|
[ACCORDION] Termination for Redundancy or Other Business Reasons
What is it | Allows employer to dismiss an employee when their functions, duties and responsibilities no longer exist due to changes to the business operations, or due to employee's illness prohibiting them from performing their job. |
---|---|
Known locally as | Authorized causes |
Grounds |
|
Compliance requirements |
|
Legal notice period |
|
Severance |
Yes, required.
*A fraction of 6 months' service is considered as 1 whole year. |
Other payment entitlements |
Final pay for days worked (including during notice period) |
Final payment due | Within 30 days of termination |
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Compliance requirements |
|
Legal notice period | 30 days. Employer can reduce or waive this notice period. |
Severance | No legal requirements |
Other payment entitlements | Final pay for days worked |
Final payment due | Within 30 days of termination |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate the employee’s employment for any reason. |
---|---|
Common reasons |
|
Legal notice period | No legal requirements |
Severance | Yes, required |
Final payment due | Within 30 days of termination |
[ACCORDION] Termination During the Probation Period
What is it | Allows employer to terminate their employment relationship at any time during the probation period, if the employee is found to be suitable for the job. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period | Must be reasonable per legal requirements. Usually 15 days. |
Severance | No legal requirements |
Other payment entitlements | Final pay for days worked |
Final payment due | Within 30 days of termination |
How to notify employee | Must be written notice |
[/ACCORDION]
[DROPDOWN-OPTION] Poland
Poland
Terminations in Poland are highly complex with a high degree of litigation risk.
It is always recommended to terminate employees through mutual termination agreements in Poland, due to the high risk of unfair termination claims. In addition, employers must be able to justify the termination reason and consult with trade unions before the termination can be carried out.
Please note that summary dismissals are almost impossible to carry out compliantly in Poland, even if the employee had breached their Employment Agreement.
In addition, employees with special protections (e.g. pregnant employees, those on maternity leave, sick leave, and those of pre-retirement age) who are terminated with or without notice can file an unfair dismissal claim and have their employment reinstated by the courts until the resolution of legal proceedings. This can have a significant impact on costs.
Given the complexity of processing terminations in Poland, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period during probation:
Notice period after probation:
Payment in lieu: Not allowed. Garden leave: Allowed. |
Notice period: Per legal requirements. Payment in lieu: Not customary. Garden leave: Customary. |
Severance | Required if terminating due to reasons not related to the employee (e.g. redundancy), depending on length of service.
|
Usually an additional severance payment of 1 to 2 month’s pay on top of the statutory minimum is offered, in exchange for a waiver of future liabilities. |
Benefits | Must be provided through the notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers are required to follow a fair and reasonable disciplinary process involving an internal investigation and disciplinary hearing before termination can be considered for misconduct. The employer has one month to initiate disciplinary proceedings from the day it became aware of the breach. |
Types of terminations
[ACCORDION] Termination With Cause
Please note that employees in Poland are well-protected under the law. As such, summary dismissals are practically impossible to carry out compliantly, even if the employee had breached their employment agreement.
What is it | Allows employer to dismiss an employee due to deliberate misconduct. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period |
N/A |
Severance |
N/A |
Final payment due | On the date of termination |
How to notify employee |
|
[ACCORDION] Termination for Redundancy or Other Business Reasons
Please note that termination for redundancy may not be possible with Deel as the employer of record. In such cases, please refer to Mutual Terminations.
What is it | Allows employer to dismiss an employee due to redundancy or other business reasons. |
---|---|
Grounds | Reorganization, downsizing, budget reasons, or reduction in workforce. |
Legal notice period |
Depends on length of service of employee:
|
Severance |
If due to reasons that are not related to the employee, the employee will be entitled to severance based on their years of service.
|
Final payment due | On the date of termination |
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows employee to resign at any time in accordance with their employment agreement. |
---|---|
Grounds | No legal requirements |
Compliance requirements | Employee must deliver a written resignation letter signed in wet ink or with an electronic/digital signature. |
Legal notice period |
Depends on length of service of employee:
|
Severance | No legal requirements |
Final payment due | On the date of termination |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate the employee’s employment for any reason. |
---|---|
Common reasons |
|
Legal notice period | No legal requirements, as mutually agreed |
Severance |
Yes, required. Amount must be higher than what is legally required, to encourage employees to sign the mutual termination agreement. This is usually an additional severance payment of 1 or 2 months' salary, on top of the statutory severance payment*, which is calculated as follows:
*Usually required only for terminations not due to employee's fault. |
Final payment due | On the date of termination |
[ACCORDION] Termination During Probation Period
What is it | Allows employer to terminate an employment relationship at any time during the probation period. |
---|---|
Grounds | No legal requirement, however, employer should still indicate the reason for termination to avoid potential legal claims by the employee. |
Legal notice period |
|
Severance | No legal requirements |
Final payment due | On the date of termination |
How to notify employee | Written notice signed in wet ink or QES |
[/ACCORDION]
[DROPDOWN-OPTION] Portugal
Portugal
Terminations in Portugal are highly complex with a high degree of litigation risk.
In Portugal, if the employee is not under probation period, it is not possible to terminate without a statutory reason such as just cause, redundancy or poor performance.
If the reason for termination is due to redundancy or poor performance, it is strongly recommended that such terminations are carried out via mutual termination agreements, due to the time consuming and complex legal processes involved. Such terminations will frequently involve payments above the statutory minimum severance.
Given the complexity of processing terminations in Portugal, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Termination during probation period: 7 or 30 days' notice, depending on whether the probation period has lasted more than 60 days or 120 days, respectively. Termination after probation period:
Note: During the legal notice of a termination after the probation period, the employee is entitled to 2 days off work per week, without any impact on their usual salary. These hours can be divided by some or all days of the week, at the initiative of the employee. Payment in lieu: Allowed. Garden leave: Not allowed. |
Notice period: Per legal requirements. Payment in lieu: Customary. Garden leave: Not customary. |
Severance |
Termination during probation period: None required. Termination after probation period: Required, except in cases of termination with just cause, by gross misconduct.
|
Usually an additional severance of 1-3 months’ pay is offered on top of the statutory requirements in exchange for a waiver of future liabilities. |
Benefits | Must be provided through the notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers are required to follow a disciplinary process regulated by law and provide employees with an opportunity to modify their behavior before termination can be considered for misconduct or poor performance, except in cases of very serious breaches of duty. |
Types of terminations
For terminations due to unsuitability or performance issues, please see Mutual Terminations.
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss an employee immediately without notice due to deliberate misconduct. |
---|---|
Grounds |
|
Compliance requirements | Must be legally justified |
Legal notice period | No legal requirements |
Severance | No legal requirements |
Other payment entitlements |
|
How to notify employee | Must be delivered to employee in writing |
[ACCORDION] Termination for Redundancy
What is it | Allows employer to terminate an employee when their functions, duties and responsibilities no longer exist due to changes to the business operations. |
---|---|
Grounds |
|
Legal notice period |
Depends on the length of service:
Note: During the legal notice, the employee is entitled 2 days off work per week, without any impact on their usual salary. These hours can be divided by some or all days of the week, at the initiative of the employee. |
Payment in lieu of notice period | Yes, allowed |
Severance |
|
Other payment entitlements |
|
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Grounds | No legal requirements |
Compliance requirements | Employee must provide written notice of resignation. |
Legal notice period | Depends on the length of of employment:
|
Severance | No legal requirements |
Other payment entitlements |
|
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate the employee’s employment for any reason. |
---|---|
Common reasons |
|
Compliance requirements | No legal requirements |
Legal notice period |
|
Severance |
Yes, required. Total severance should be a sum of the legal requirement + additional severance on top. Legal requirement:
For the additional severance:
|
Other payment entitlements |
|
[ACCORDION] Termination During the Probation Period
What is it | Allows either employer or employee to terminate their employment relationship at any time during the probation period. |
---|---|
Grounds |
|
Compliance requirements | No legal requirements |
Legal notice period |
Depends on employee's length of service:
|
Payment in lieu of notice period | Yes, allowed |
Severance | No legal requirements |
Other payment entitlements |
|
[/ACCORDION]
[DROPDOWN-OPTION] Serbia
Serbia
Terminations in Serbia are highly complex with a high degree of litigation risk. It is always recommended to terminate employees via mutual termination agreements in Serbia, due to the high risk of unfair dismissal claims and/or litigation.
Given the complexity of processing terminations in Serbia, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period:
Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: Per legal requirements, unless otherwise stated in the Employment Agreement. Payment in lieu: Customary. Garden leave: Customary. |
Severance | Required if termination is due to redundancy. Amount is at least one-third of the employee’s average gross salary that was paid over the last 3 months, for each full year of service. | Usually an additional 1 month’s severance payment on top of the statutory minimum is offered, in exchange for a waiver of future liabilities. |
Benefits | Must continue to accrue until the end of notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
In some cases, employers are required to issue a written notice to the employee with the facts supporting the decision for termination and give the employee time to respond, before the termination can be carried out for misconduct or poor performance. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss an employee due to their work ability and conduct, breaching their work duties, non-compliance with work discipline requirements, or redundancy. |
---|---|
Grounds |
|
Compliance requirements | In some cases, employer must first give written notice to employee on the termination reasons, facts supporting decision to terminate employment, and the time limit for the employee to respond, before the termination can be carried out. |
Legal notice period |
Generally, no legal requirements unless otherwise stated in employment agreement. However, if employee is being terminated due to breach of work duty or inability or lack of qualifications, they have the right to continue working for a notice period of between 8 and 30 days (depending on the period of paid pension insurance). |
Severance |
Required only for terminations due to redundancy:
|
Final payment due | On date of termination |
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Grounds | No legal requirements |
Compliance requirements | Employee must provide a resignation letter with their signature in wet ink. |
Legal notice period | At least 15 days, capped at 30 days |
Severance | No legal requirements |
Final payment due | On date of termination |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate their employment relationship for any reason. |
---|---|
Common reasons |
|
Legal notice period | As mutually agreed |
Severance | Yes, required. Amount must be higher than what is legally required. |
Final payment due | Within 30 days after termination |
[ACCORDION] Termination During Probation Period
What is it | Allows employer to terminate their employment relationship at any time during the probation period. |
---|---|
Grounds |
|
Compliance requirements | Employer must be able to justify reason for termination. |
Legal notice period | 5 days |
Severance | No legal requirements |
Final payment due | On date of termination |
How to notify employee |
|
[/ACCORDION]
[DROPDOWN-OPTION] Singapore
Singapore
Terminations in Singapore are not very complex with a moderate degree of litigation risk.
Given the moderate degree of litigation risk from terminations in Singapore, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period: None. Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: 1 month. Payment in lieu: Customary. Garden leave: Not customary. |
Severance | None. | Usually a severance payment is offered, in exchange for a waiver of future liabilities. |
Benefits | Must continue to accrue through the notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers are required to conduct a fair disciplinary inquiry and document each step of the process before termination can be considered for misconduct or serious performance issues. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to end their employment relationship immediately without notice due to misconduct or serious performance issues. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period | No legal requirements |
Severance | No legal requirements |
Final payment due | Within 3 working days after termination |
How to notify employee |
|
[ACCORDION] Termination for Redundancy and Other Business Reasons
What is it | Allows employer to terminate an employee when their functions, duties and responsibilities no longer exist due to changes to the business operations. |
---|---|
Grounds |
|
Compliance requirements |
Must notify the Ministry of Manpower office. This is mandatory for employers with ≥10 employees. |
Legal notice period | As stated in the Employment Agreement, but it is encouraged to give a longer notice period. |
Severance |
No legal requirements. However, the norm is to pay a retrenchment benefit* of 2 weeks' to 1 month's salary per year of service. *Employees with >2 years' service are eligible for retrenchment benefits. Those with <2 years' service are frequently granted ex-gratia payments out of goodwill. |
Final payment due | Within 3 working days after termination |
How to notify employee |
|
[ACCORDION] Termination Without Cause
IMPORTANT: Please inform Deel before communicating any possible Termination Without Cause to the employee, to avoid any legal risks or additional obligations.
What is it | Allows employer to terminate an employee in accordance with a termination clause in the Employment Agreement. |
---|---|
Compliance requirements | 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 | As stated in the Employment Agreement |
Severance | No legal requirements. However, in some cases it may be advisable to offer severance. |
Final payment due | Within 3 working days after termination |
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Compliance requirements | Employee must provide a resignation letter signed in wet ink or by email with digital/electronic signature. |
Legal notice period | As stated in the Employment Agreement |
Severance | No legal requirements |
Final payment due | On last day of employment |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate the employee’s employment for any reason. |
---|---|
Common reasons |
|
Legal notice period | As mutually agreed |
Severance | No legal requirements, but highly recommended |
Final payment due | Within 3 working days after termination |
[ACCORDION] Termination During the Probation Period
What is it | Allows either employer or employee to terminate their employment relationship at any time during the probation period. |
---|---|
Grounds | No legal requirements |
Compliance requirements | 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 | As stated in Employment Agreement |
Severance | No legal requirements |
Final payment due | 3 working days after termination |
How to notify employee |
|
[/ACCORDION]
[DROPDOWN-OPTION] South Africa
South Africa
Terminations in South Africa are highly complex with a high degree of litigation risk. It is always recommended to terminate employees via mutual termination agreements in South Africa, due to the high risk of unfair dismissal claims.
Given the complexity of processing terminations in South Africa, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period:
Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: Per legal requirements. Payment in lieu: Not customary. Garden leave: Not customary. |
Severance | Required if terminating due to redundancy, at at least 1 week’s pay for each completed year of service. | Usually an amount higher than statutory requirements in exchange for a waiver of future claims. |
Benefits | Must be provided through the notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers are required to follow a fair and reasonable disciplinary process prescribed by law, involving multiple formal warnings, before termination can be considered for misconduct. There needs to be counseling of the employee in cases of poor performance (even during probation) - dismissal is the last resort. In both cases, misconduct and performance a hearing is convened before a decision on termination is reached. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss an employee due to misconduct. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period |
If employee found guilty of gross misconduct (i.e. summary dismissal), no notice required. |
Payment in lieu of notice period |
As stated in Employment Agreement |
Severance | No legal requirements |
Final payment due |
Within 7 days after termination, or as stated in Employment Agreement |
How to notify employee | Written notice |
[ACCORDION] Termination Due to Redundancy or Other Business Reasons
What is it | Allows employer to dismiss an employee due to redundancy or other business reasons (e.g. downsizing). |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period | As stated in Employment Agreement |
Payment in lieu of notice period | Yes, allowed |
Severance | At least 1 week's salary for each completed year of service |
Final payment due | Within 7 days of termination |
How to notify employee |
Written notice |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate the employee’s employment for any reason. |
---|---|
Common reasons |
|
Legal notice period | No legal requirements |
Severance | Yes, required. Must be above statutory requirements and both parties must agree to the amount. |
Final payment due | Within 7 days after termination, or as mutually agreed |
[ACCORDION] Resignation
What is it | Allows employee to resign at any time in accordance with their Employment Agreement or local labor laws. |
---|---|
Grounds | No legal requirements |
Compliance requirements | Employee must provide a resignation letter with their signature. |
Legal notice period | As stated in Employment Agreement |
Severance | No legal requirements |
Final payment due |
Within 7 days of termination, or as stated in Employment Agreement |
Other payment entitlements | Any accrued, unused annual leave |
[ACCORDION] Termination During Probation Period
What is it | Allows either employer or employee to end their employment relationship during the probation period. |
---|---|
Grounds | No legal requirements |
Compliance requirements |
|
Legal notice period | As stated in Employment Agreement |
Severance | No legal requirements |
Final payment due | Within 7 days or as stated in Employment Agreement |
Other payment entitlements | Any accrued, unused annual leave |
How to notify employee | Written notice |
[/ACCORDION]
[DROPDOWN-OPTION] South Korea
South Korea
Terminations in South Korea are highly complex with a high degree of litigation risk. It is always recommended to terminate employees via mutual termination agreements in South Korea, due to the high risk of unfair dismissal claims.
Given the complexity of processing terminations in South Korea, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period: 30 days. Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: Per legal requirements. Payment in lieu: Customary. Garden leave: Customary. |
Severance | Required for resignations and terminations due to redundancy and the employee has at least 1 year of service. For every year of service, 30 days’ average salary. | Usually an additional severance payment is offered on top of the legal minimum, in exchange for a waiver of future liabilities. |
Benefits | Must continue to accrue until the end of notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
|
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to end their employment relationship immediately without notice due to deliberate misconduct. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period | No legal requirements |
Severance | No legal requirements |
Final payment due | Within 14 days after termination |
How to notify employee |
|
[ACCORDION] Termination Due to Poor Performance
What is it | Allows employer to dismiss an employee due to poor performance. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period |
|
Severance |
Yes, required if employee has worked for ≥1 year.
|
Final payment due | 14 days after termination |
How to notify employee |
|
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate the employee’s employment for any reason (including redundancy or other business reasons). |
---|---|
Common reasons |
|
Compliance requirements | No legal requirements |
Legal notice period | No legal requirements |
Severance |
Yes, required. Amount must be above what is legally required. |
Final payment due | 14 days after termination |
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time in accordance with their Employment Agreement. |
---|---|
Grounds | No legal requirements |
Compliance requirements | Employee must deliver a resignation letter signed with wet ink and provide at least 30 days' notice before their last day. |
Legal notice period | 30 days |
Severance | Required if employee has at least 1 year of service. For every year of service, 30 days’ average salary. |
Final payment due | 14 days after termination |
[ACCORDION] Termination During Probation Period
What is it | Allows either employer or employee to terminate their employment relationship at any time during the probation period. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period | No legal requirements |
Severance | No legal requirements |
Final payment due | Within 14 days after termination |
How to notify employee |
|
[/ACCORDION]
[DROPDOWN-OPTION] Spain
Spain
Terminations in Spain are highly complex with a high degree of litigation risk.
Given the complexity of processing terminations in Spain, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period: 15 days. Payment in lieu: Allowed. Garden leave: Not allowed. |
Notice period: 15 days. Payment in lieu: Customary. Garden leave: Not customary. |
Severance | Required if termination is due to redundancy. At least 33 days' salary for each year of service. | Usually at least 33 days' salary for each year of service (pro-rated), advisable to be grossed up. |
Benefits | Must be provided through the notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process | None required. |
Types of terminations
[ACCORDION] Termination With Legal Grounds
What is it | Allows employer to dismiss an employee due to misconduct. |
---|---|
Grounds |
|
Compliance requirements | Must be expressly justified to be compliant with the law |
Legal notice period | No legal requirements |
Severance | No legal requirements |
Final payment due | On the employee's last working day |
How to notify employee |
|
[ACCORDION] Termination for Redundancy
What is it | Allows employer to terminate an employee due to provided legal grounds related to specific business situations. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period | 15 days |
Severance | Yes, required. At least 33 days' salary for each year of completed service. |
Final payment due | On employee's last working day |
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Compliance requirements | Employee must provide a signed resignation letter 15 days before their last working day. |
Legal notice period | 15 days (by the employee). |
Severance | No legal requirements |
Final payment due | On employee's last working day |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate the employee’s employment for any reason. |
---|---|
Common reasons |
|
Legal notice period | No legal requirements |
Severance | Yes, required. Recommended to be at least 33 days' salary for each year of service (pro-rated), plus gross up. |
Final payment due | On employee's last working day |
[ACCORDION] Termination During the Probation Period
What is it | Allows either employer or employee to terminate their employment relationship at any time during the probation period. |
---|---|
Grounds | No legal requirements |
Compliance requirements | No legal requirements |
Legal notice period | No legal requirements |
Severance | No legal requirements |
Final payment due | On employee's last working day |
[/ACCORDION]
[DROPDOWN-OPTION] Sweden
Sweden
Terminations in Sweden are highly complex with a high degree of litigation risk. Due to the significant increase in complexity of terminations after probation, it is recommended to evaluate employees seriously during the probation period and contact Deel if termination is being considered.
Given the complexity of processing terminations in Sweden, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period:
Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: Per legal requirements. Payment in lieu: Not customary. Garden leave: Customary for mutual termination agreements, especially when due to redundancy. |
Severance | None. | Usually a severance payment of 1 to 3 months' salary is offered, in exchange for a waiver of future claims. |
Benefits | Must continue to accrue through the notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers are required to follow a prescribed disciplinary process involving a consultation process before termination can be considered for serious misconduct. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss an employee immediately without notice due to serious misconduct. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period | No legal requirements |
Severance | No legal requirements |
Final payment due | 1 month after termination |
How to notify employee |
|
[ACCORDION] Termination due to Redundancy or Other Business Reasons
What is it | Allows employer to terminate an employee due to redundancy or other business reasons. |
---|---|
Grounds |
|
Compliance requirements |
If due to business reasons/redundancy:
If due to performance issues:
Important: Termination will not be justified if there are other alternatives besides terminating the employee (e.g. relocating employee to other positions in the workplace). |
Legal notice period |
|
Severance | No legal requirements |
Final payment due | 1 month after termination |
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Grounds | No legal requirements |
Compliance requirements | Employee must provide a written resignation letter (via email with e-signature is allowed). |
Legal notice period | At least 1 month |
Severance | No legal requirements |
Final payment due | 1 month after termination |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate their employment relationship for any reason. |
---|---|
Common reasons |
|
Legal notice period | As mutually agreed |
Severance | Usually a severance payment of 1 to 3 months is offered, in exchange for a waiver of future claims. Please note that many factors will play a part in the final calculation, such as length of service, termination reason (e.g. redundancy or performance), seniority, length of notice period etc. |
Final payment due | 1 month after termination |
[ACCORDION] Termination During Probation Period
What is it | Allows employer to terminate their employment relationship at any time during the probation period. |
---|---|
Grounds |
No legal requirements |
Compliance requirements | Probation period is up to 6 months |
Legal notice period | 2 weeks |
Severance | No legal requirements |
Final payment due | 1 month after termination |
[/ACCORDION]
[DROPDOWN-OPTION] Switzerland
Switzerland
Terminations in Switzerland are not very complex with a moderate degree of litigation risk.
Given the degree of litigation risk from terminations in Switzerland, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period during probation: 7 days Notice period after probation:
Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: Per legal requirements. Payment in lieu: Customary. Garden leave: Customary. |
Severance | None. | None. |
Benefits | Must continue to accrue until the end of the notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers are required to provide multiple formal warnings before termination can be considered for breach of duty, unless the breach is serious. |
Types of terminations
For terminations due to business reasons and redundancy, please refer to Mutual Terminations.
[ACCORDION] Termination With Cause
What is it | Allows employer to end an employment relationship immediately without notice due to breaches of duty. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period | No legal requirements |
Severance | No legal requirements |
Other payment entitlements | Final pay for days worked |
Final payment due | On the last day of the month in which employment ends |
How to notify employee | Registered letter sent by post mail |
[ACCORDION] Termination Without Cause
What is it | Allows employer to terminate an employee without cause. |
---|---|
Compliance requirements |
|
Legal notice period |
Depends on employee's years of service:
Note: In Switzerland, notice period is only effective from the last day of the month in which it was given. |
Severance | No legal requirements |
Other payment entitlements | Final pay for days worked |
Final payment due | On the last day of the Employment Agreement, which will always be the last day of the month in which notice ends. |
How to notify employee | Registered letter sent by post mail |
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Compliance requirements | Employee must provide a resignation letter signed with wet ink. |
Legal notice period |
|
Severance | No legal requirements |
Final payment due | On the last day of the month in which employment ends |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate the employee’s employment for any reason. |
---|---|
Common reasons |
|
Compliance requirements | Must not be used to circumvent mandatory protection provisions. |
Legal notice period | No legal requirements |
Severance | No legal requirements. However, mutual terminations will always entail the offer of a severance package. |
Final payment due | The date of termination of the Employment Agreement |
[ACCORDION] Termination During the Probation Period
What is it | Allows either employer or employee to terminate their employment relationship at any time during the probation period. |
---|---|
Grounds | No legal requirements |
Compliance requirements | No legal requirements |
Legal notice period | 7 days |
Severance | No legal requirements |
Final payment due | On the last day of the contract, which will always be the last day of the month in which notice ends |
How to notify employee | Registered letter sent by post mail |
[/ACCORDION]
[DROPDOWN-OPTION] Thailand
Thailand
Low Complexity | Inform Deel at least 30 days before initiating any termination. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss an employee immediately without notice due to serious misconduct. |
---|---|
Grounds |
|
Compliance requirements | Employer must clearly define and support with evidence the grounds for termination. |
Legal notice period | None |
Severance | No legal requirements |
Final payment due |
|
How to notify employee |
|
[ACCORDION] Termination Without Cause
What is it | Allows employer to terminate an employee without cause by providing notice to the employee. |
---|---|
Grounds | Reasons not related to the employee but for other reasons such as redundancy or business reasons. |
Compliance requirements | Employer must provide notice, or payment in lieu of notice. |
Legal notice period | One complete payment cycle/one complete month from when the employee is informed of the termination. For example, if the termination notice is given on June 15, the earliest possible termination date is on July 31 (or payment in lieu of notice until July 31). |
Severance |
Varies depending on length of service:
|
Final payment due |
Salary and overtime pay must be paid within 3 working days after the termination date. Other compensation (such as severance pay, payment in lieu of notice, and cash equivalent of unused leaves) must be paid on the termination date. |
How to notify employee | Written and signed termination notice sent via email to the employee. |
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
---|---|
Grounds | No legal requirements |
Compliance requirements | Employee must submit a written resignation letter (email is allowed). |
Legal notice period | 30 days |
Severance | No legal requirements |
Final payment due |
Salary and overtime pay must be paid within 3 working days after the resignation date. Other compensation (such as the cash equivalent of unused leaves) must be paid on the resignation date. |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate their employment relationship for any reason. |
---|---|
Common reasons |
|
Compliance requirements | Mutual termination agreement must be signed by both employer and employee. |
Legal notice period | As mutually agreed |
Severance | Yes, required. An ex-gratia severance pay must be paid to the employee in addition to what they are legally entitled. |
Final payment due |
|
[ACCORDION] Termination During Probation Period
What is it | Allows employer to terminate their employment relationship at any time during the probation period. |
---|---|
Grounds |
|
Compliance requirements | Employer must provide a written and signed termination notice. |
Legal notice period | One complete payment cycle/one complete month from when the employee is informed of the termination. For example, if the termination notice is given on June 15, the earliest possible termination date is on July 31 (or payment in lieu of notice until July 31). |
Severance |
Calculated based on the length of service:
|
Final payment due |
Salary and overtime pay must be paid within 3 working days after the termination date. Other compensation (such as severance pay, payment in lieu of notice, and cash equivalent of unused leaves) must be paid on the termination date. |
How to notify employee |
|
[/ACCORDION]
[DROPDOWN-OPTION] Tunisia
Tunisia
❗High Complexity | Inform Deel at least 30 days before initiating any termination. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss employee immediately without notice due to serious or non-serious misconduct. |
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Grounds |
There are 2 types of misconduct in Tunisia: serious misconduct (employee behavior making it impossible to continue with employment relationship), and non-serious misconduct (where termination occurs only after persistent misconduct in spite of repeated disciplinary actions).
|
Compliance requirements |
|
Legal notice period |
|
Severance | No legal requirements |
Final payment due | On the date of termination |
How to notify employee |
|
[ACCORDION] Termination for Redundancy or Other Business Reasons
What is it | Allows employer to dismiss an employee due to redundancy or other business reasons. |
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Grounds |
|
Compliance requirements |
|
Legal notice period |
30 days or as stated in Employment Agreement Note: In Tunisia, terminated employees do not have to work for the last half month of their employment in order to allow them to search for a job. |
Severance |
Yes, required for employees who have passed probation.
*This can be raised by collective agreements, if applicable. |
Final payment due | On the date of termination |
How to notify employee |
|
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate the employee’s employment for any reason. |
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Common reasons |
|
Legal notice period |
1 month, or as stated in Employment Agreement. Note: In Tunisia, terminated employees do not have to work for the last half month of their employment in order to allow them to search for a job. |
Severance | Yes, required. Amount must be higher than what is legally required. |
Final payment due | On date of termination |
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time, in accordance with their Employment Agreement. |
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Grounds | No legal requirements |
Compliance requirements | Employee must provide a written resignation letter that's dated and signed. |
Legal notice period |
1 month, or as stated in Employment Agreement. Note: In Tunisia, terminated employees do not have to work for the last half month of their employment in order to allow them to search for a job. |
Severance | No legal requirements |
Final payment due | On the date of termination |
[ACCORDION] Termination During Probation Period
What is it | Allows either employer or employee to unilaterally terminate their employment relationship at any time during the probation period. |
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Grounds |
|
Compliance requirements |
|
Legal notice period |
1 month, or as stated in Employment Agreement Note: In Tunisia, terminated employees do not have to work for the last half month of their employment in order to allow them to search for a job. |
Severance | No legal requirements |
Final payment due | On the date of termination |
How to notify employee |
|
[/ACCORDION]
[DROPDOWN-OPTION] Turkey
Turkey
Terminations in Turkey are moderately complex with a moderate degree of litigation risk.
Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period:
Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: Per legal requirements. Payment in lieu: Customary. Garden leave: Customary. |
Severance | Required if termination reason is not misconduct and the employee has at least 1 year of service. Amount is 1 month’s gross salary for each year of service. | Usually an additional severance/compensation payment of 2 to 6 months’ salary on top of the statutory minimum is offered, in exchange for a waiver of future liabilities. |
Benefits | Must continue to accrue until the end of notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers are required to follow a disciplinary process and provide the employee with an opportunity to defend themselves, before termination can be considered for misconduct or poor performance. |
Types of terminations
For terminations due to redundancy, please refer to Mutual Terminations.
[ACCORDION] Termination With Just Cause
What is it | Allows employer to dismiss an employee immediately without notice due to serious misconduct or a just cause. |
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Grounds |
|
Compliance requirements | Employer must follow a disciplinary process before carrying out termination:
|
Legal notice period | No notice is needed if the act is proven without reasonable doubt. |
Severance |
If due to health reasons, force majeure or employee's arrest/detention:
If due to immoral, dishonourable or malicious conduct or other similar behaviour:
|
Final payment due | Payments need to be made in the payroll cycle of the month in which termination took place. |
How to notify employee | Written notice with a simple electronic signature. |
[ACCORDION] Termination for Valid Reasons
What is it | Allows employer to dismiss an employee due to employee performance or behavior. |
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Grounds |
|
Compliance requirements |
|
Legal notice period |
As stated in Employment Agreement. Varies based on length of service:
|
Payment in lieu of notice period | Yes, allowed |
Severance |
Yes, required for employees with ≥ 1 year of service, at 1 month's gross salary for each year of service. If the employee has unpaid labor receivables (overtime payment, annual leave/or public holiday payment etc.), these must be paid by the employer. |
Final payment due | Payments need to be made in the payroll cycle of the month in which termination took place. |
How to notify employee | Written notice with simple electronic signature |
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
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Grounds | No legal requirements |
Compliance requirements | Employee must submit a resignation letter in accordance with their notice period. |
Legal notice period |
As stated in Employment Agreement. Varies based on length of service:
|
Severance | No legal requirements |
Final payment due | Payments need to be made in the payroll cycle of the month in which termination took place. |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate their employment relationship for any reason. |
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Common reasons |
|
Legal notice period | As mutually agreed |
Severance |
Yes, required. Amount must be higher than what is legally required. A mutual termination agreement executed without additional compensation can be viewed as void by the courts. Usually the additional severance is 2 to 6 months' salary. |
Final payment due | Payments need to be made in the payroll cycle of the month in which termination took place. |
[ACCORDION] Termination During Probation Period
What is it | Allows employer to terminate their employment relationship at any time during the probation period. |
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Grounds |
None required, but some common reasons include poor performance, bad behavior, persistent lateness/absence from work. |
Compliance requirements | No legal requirements |
Legal notice period | No legal requirements |
Severance | No legal requirements |
Final payment due | Payments need to be made in the payroll cycle of the month in which termination took place. |
How to notify employee | No legal requirements |
[/ACCORDION]
[DROPDOWN-OPTION] United Arab Emirates
United Arab Emirates
Terminations in United Arab Emirates (UAE) are moderately complex with a high degree of litigation risk.
Given the complexity of processing terminations in UAE, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period: 14 days during probation. At least 30 days and maximum 3 months after probation. Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: Between 30 and 90 days. Payment in lieu: Customary. Garden leave: Not customary. |
Severance | Required, at 21 to 30 days' salary per year of service. | Usually an additional 30 days' salary is offered on top of the legal requirements. |
Benefits | Must be provided through the notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers are required to follow a fair and reasonable disciplinary process involving proper investigations and a disciplinary hearing before termination can be considered for misconduct. For less severe misconduct or breaches, it is recommended to issue formal warnings or suspension before resorting to termination. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to terminate an employee due to deliberate misconduct. |
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Grounds |
|
Compliance requirements |
|
Legal notice period | At least 30 days, capped at 90 days |
Payment in lieu of notice period | Yes, allowed |
Severance |
Yes, includes:
|
Final payment due | Within 14 days after termination |
How to notify employee |
|
[ACCORDION] Termination due to Redundancy or Other Business Reasons
What is it | Allows employer to terminate an employee due to redundancy or other business reasons. |
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Grounds | Genuine business need to reduce workforce due to economic circumstances, structuring, technological advancements or business closure |
Compliance requirements |
|
Legal notice period | 30 days, or as stated in employment agreement |
Payment in lieu of notice period | Yes, allowed |
Severance |
|
Final payment due | Within 14 days after termination |
How to notify employee |
|
[ACCORDION] Mutual Termination
What is it | Allows employer and employee to mutually agree to terminate their employment relationship at any time. |
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Common reasons |
|
Compliance requirements | No legal requirements, but should be in accordance with UAE labor laws and employment agreement. |
Legal notice period | 30 days, or as stated in employment agreement |
Severance |
Yes, required. Amount must be higher than what is legally required:
|
Final payment due | As mutually agreed |
How to notify employee | Written notice |
[ACCORDION] Resignation
What is it | An employee may resign at any time in accordance with their employment agreement. |
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Grounds | No legal requirements |
Compliance requirements | Employee must submit a written resignation letter, either signed in wet ink or digital/electronic signature. |
Legal notice period | 30 days or as per employment agreement. |
Severance |
|
Final payment due | Within 14 days of termination |
[ACCORDION] Termination During Probation Period
What is it | Allows employer to terminate an employment relationship at any time during the probation period. |
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Grounds |
|
Compliance requirements |
|
Legal notice period | At least 14 days. Certain types of termination do not legally require a notice period, but Deel must know in advance in order to ensure compliance with local employment laws. |
Severance | No legal requirements |
Final payment due | Within 14 days of termination |
How to notify employee |
|
[/ACCORDION]
[DROPDOWN-OPTION] United Kingdom
United Kingdom
Terminations in the United Kingdom are not very complex with a high degree of litigation risk. Most terminations will include the payment of a severance above the legal minimums in exchange for a waiver of future liabilities.
Given the high degree of litigation risk from terminations in the United Kingdom, Deel needs at least 30 days to process such requests except in the case of well documented gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period:
Payment in lieu: Allowed Garden leave: Allowed |
Notice period: Typical notice periods are between 1 - 3 months but It depends on the job role. It is common practice for the notice period to be greater than the statutory minimum. Payment in lieu: Customary Garden leave: Customary |
Severance | Required if termination is due to redundancy and the employee has been continuously employed for at least 2 years. | Usually an amount higher than statutory requirements in exchange for a waiver of future claims. |
Benefits | Must be provided through the notice period | Per legal requirements |
Other Liabilities |
|
|
Disciplinary Process | Employers are required to follow a fair and reasonable disciplinary process involving multiple formal warnings before termination can be considered for misconduct or poor performance. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss an employee due to deliberate misconduct, inability or any other "fair reason" as defined by UK employment law. |
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Known locally as | Terminating for one of the five potential "fair reasons", or fair dismissal. |
Grounds |
|
Compliance requirements |
If due to misconduct:
|
Legal notice period |
Depending on length of service. May be higher as per employment agreement.
In cases of gross misconduct or serious breaches of contract, summary dismissal without notice may be possible. |
Payment in lieu of notice period | Depends on employment agreement |
Severance | No legal requirements |
Final payment due | No legal requirements |
Other payment entitlements | Any outstanding contractual payments (e.g. holiday pay) |
How to notify employee | Can be sent via email. |
[ACCORDION] Termination due to Redundancy or Other Business Reasons
What is it | Allows employer to end an employment relationship due to redundancy or other business reasons. |
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Known locally as | Terminating for one of the five potential "fair reasons", or fair dismissal. |
Grounds |
|
Compliance requirements |
Please note the process for an individual redundancy is different from a collective redundancy procedure (which is not addressed in this guide). |
Legal notice period |
Depending on length of service. May be higher as per employment agreement.
|
Payment in lieu of notice period | Depends on employment agreement |
Severance |
Yes, if employee has ≥2 years of continuous service:
Please also refer to the UK Government's redundancy calculator. |
Final payment due | Final pay date, or as otherwise mutually agreed in writing |
How to notify employee | Can be sent via email. |
[ACCORDION] Resignation
What is it | Allows employee to resign at any time in accordance with their employment agreement. |
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Grounds | No legal requirements |
Compliance requirements | Employee must provide a written resignation letter. |
Legal notice period |
May be higher as per employment agreement. |
Severance | No legal requirements |
Final payment due | On the usual pay date |
[ACCORDION] Mutual Termination
What is it | Allows employer and employee to mutually agree to terminate their employment relationship at any time. |
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Common reasons |
|
Legal notice period | As mutually agreed |
Severance | Yes, required. Amount must be higher than what is legally required. |
Final payment due | As mutually agreed. Usually 14 or 28 days after mutual termination agreement is signed. |
[ACCORDION] Termination During Probation Period
What is it | Allows employer to terminate their employment relationship at any time during the probation period. |
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Grounds |
No legal requirements, however, some possible reasons include:
|
Compliance requirements |
|
Legal notice period |
As stated in employment agreement. Otherwise:
|
Severance | No legal requirements |
Final payment due | On usual pay date |
How to notify employee | Written notice |
[/ACCORDION]
[DROPDOWN-OPTION] United States
United States
Terminations in the United States are not very complex with a moderate degree of litigation risk. It is common to negotiate a mutual separation agreement with employees that includes payment of severance in exchange for a waiver of liability (i.e. a release).
Given the degree of litigation risk from terminations in the United States, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period: None Payment in lieu: Not Applicable Garden leave: Allowed |
Notice period: At least 2 weeks to maintain goodwill and reduce likelihood of litigation Payment in lieu: Customary Garden leave: Not customary |
Severance | None. | At least 2 weeks' average salary. This will depend on the history between the employee and the employer. |
Benefits | COBRA benefits upon separation at employee's election. Most US employees are provided with notice of continuation of benefits (COBRA) to be paid solely by the employee upon termination. | COBRA benefits upon separation at employee's election. Most US employees are provided with notice of continuation of benefits (COBRA) to be paid solely by the employee upon termination. |
Other Liabilities |
|
|
Disciplinary Process | None required. |
Types of terminations
[ACCORDION] 'At-Will' Termination
What is it | Allows employer to end an employment relationship at any time, for any reason, without notice, provided that the termination does not violate the terms of the Employment Agreement or any other legal protections to which the employee may be entitled. |
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Grounds | No legal requirements |
Compliance requirements |
|
Legal notice period | No legal requirement. However, it is recommended to provide at least 2 weeks' notice to maintain goodwill and reduce likelihood of litigation. |
Severance |
No legal requirement. However, it is recommended to offer a severance of ≥2 to 4 weeks' pay, in exchange for a release of claims*. In cases of increased risk, a higher severance may be required. *Any release of claim obtained without the payment of a severance is likely to be found invalid. |
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time. |
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Grounds | No legal requirements |
Compliance requirements |
|
Legal notice period | No legal requirements |
Severance | No legal requirements |
[/ACCORDION]
[DROPDOWN-OPTION] Vietnam
Vietnam
Terminations in Vietnam are highly complex with a high degree of litigation risk. Terminations frequently involve a payment of severance above the statutory minimum in exchange for a waiver of liability.
Given the complexity of processing terminations in Vietnam, Deel needs at least 30 days to process such requests except in the case of gross misconduct.
Considerations & Liabilities
Legal Requirements | Local Best Practices | |
Notice Period |
Notice period: 45 days. Payment in lieu: Allowed. Garden leave: Allowed. |
Notice period: Per legal requirements. Payment in lieu: Customary. Garden leave: Not customary. |
Severance |
Required if the employee has at least 12 months of service. Amount must be at least 0.5 month’s salary for each year of service. If the termination reason is redundancy and the employee has at least 12 months of service, the employee is entitled to 1 month’s salary for each year of service. However, in any case, a minimum of 2 months’ salary must be paid if the employee has at least 12 months of service. |
Usually an additional severance payment on top of the statutory minimum is offered, in exchange for a waiver of all liabilities arising from the employment. |
Benefits | Must continue to accrue until the end of notice period. | Per legal requirements. |
Other Liabilities |
|
|
Disciplinary Process |
Employers are required to follow a fair and reasonable disciplinary process involving a hearing with the employee and their trade union before termination can be considered for misconduct or poor performance. |
Types of terminations
[ACCORDION] Termination With Cause
What is it | Allows employer to dismiss an employee immediately without notice due to serious misconduct. |
---|---|
Grounds |
|
Compliance requirements |
|
Legal notice period |
|
Severance |
Yes, required for employees with at least 12 months of service who are terminated for the following reasons:
Severance is ½ month's salary for each year of service. |
Final payment due | Within 14 working days after the date of termination |
How to notify employee |
|
[ACCORDION] Termination due to Redundancy or Other Business Reasons
What is it | Allows employer to terminate an employee due to redundancy or other business reasons. |
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Grounds |
|
Compliance requirements |
If due to changes in structure and technology:
If due to economic crisis or economic depression:
|
Legal notice period | If due to changes in structure and technology, employer must provide 30 days' notice to the People’s Committee of the province and to their employees. |
Severance |
Yes, redundancy allowance is required for employees with at least 12 months of service:
|
Final payment due | Within 14 working days from date of termination. This can be extended to 30 days if needed. |
How to notify employee |
|
[ACCORDION] Resignation
What is it | Allows an employee to resign at any time in accordance with their employment agreement. |
---|---|
Grounds | No legal requirements |
Compliance requirements | Employee must provide a written resignation letter with their signature. |
Legal notice period |
No notice is required if:
Otherwise:
|
Severance |
Yes, required for employees with at least 12 months of service:
|
Final payment due | Within 14 days from date of termination |
[ACCORDION] Mutual Termination
What is it | Allows both the employer and employee to mutually agree to terminate their employment relationship for any reason. |
---|---|
Common reasons |
|
Legal notice period | As mutually agreed |
Severance |
Yes, required for employees with at least 12 months of service:
|
Final payment due | Within 14 days from date of termination |
[ACCORDION] Termination During Probation Period
What is it | Allows employer to terminate their employment relationship at any time during the probation period. |
---|---|
Grounds |
No legal requirements |
Compliance requirements | None |
Legal notice period | None |
Severance | No legal requirements |
Final payment due | Within 14 working days |
How to notify employee | Sent via email and signed using an electronic signature Sent via registered mail and signed using wet ink |
[/ACCORDION]
[/DROPDOWN]
Disclaimer: The information provided in this guide is not legal advice. If you have any questions or need information about terminating a 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.