Notice of termination given by the employer

Termination by the Employer

Termination by the employer is a unilateral act by which the employment relationship with the employee is ended. The employer may give notice of termination only for reasons stipulated by law. A specific procedure must be followed in doing so.
In this article, we will explain the circumstances under which an employer may lawfully terminate an employee. We will focus on what employees should know in order to understand and navigate the entire situation.

Requirements for Termination by the Employer

For a termination to be valid, it must meet the following formal requirements:

• Written Form – Termination must always be in writing. Oral termination is invalid.

• Delivery – The termination notice must be delivered to the employee personally. This can occur at the workplace (the primary method), at the employee’s residence, or wherever the employee is found. Alternatively, it can be delivered via postal service.

• Precise Specification of the Reason for Termination – The reason must be factually defined in such a way that it cannot be confused with any other reason.

• Signature of an Authorized Person – The termination notice must be signed by a person authorized to do so.

• Information on the Right to File a Lawsuit – Although not mandatory, it is customary to inform the employee about their right to challenge the termination in court.

If any of the mandatory requirements are missing, the termination may be considered invalid.

Statutory Grounds for Termination by the Employer

The employer cannot terminate employment at any time and for any reason. The reason given in the termination notice must be described in an unmistakable manner. It is insufficient to merely state that the employee has violated a legal provision; the termination must clearly specify when and how the employee allegedly committed the relevant conduct. Section 52 explicitly defines the circumstances under which termination by the employer is permitted:

• Closure of the Employer or Its Part – The employer ceases to perform the activity that the employee carried out under the contract. For example, the employer stops operating in the industry where the employee works, closes a branch, or enters liquidation. All employees of the affected branch or company receive termination notices due to the elimination of their jobs. If only the employer’s legal entity changes, employment relationships transfer to the new employer (more information can be found here).

• Relocation of the Employer or Its Part – The employer relocates its registered office or branch outside the agreed place of work (usually to a different municipality). For example, if the employer moves operations from Ostrava to Prague, and the employee’s contract states Ostrava as the place of work, the employee is not obliged to work elsewhere. The employer may terminate employment due to relocation. It must be an actual relocation, not merely a formal change of address on paper.

• Redundancy of the Employee – The employee’s work becomes unnecessary for the employer due to organizational changes. The employer decides on redundancy based on organizational restructuring. Reasons may include technological upgrades, staff reductions, etc. Discrimination (e.g., termination only of employees over 55 years old) is prohibited and the redundancy must be clearly justified as a consequence of the organizational change.

• Loss of Employee’s Fitness for Work Due to a Work Injury – Based on a medical assessment, if the employee’s health condition no longer allows them to perform their current job due to a work injury or occupational disease. Mere recognition of disability is not grounds for termination.

• Loss of Employee’s Fitness for Work – Similar to the above, but the health issue is unrelated to work injury or occupational disease (e.g., a long-term illness).

• Failure to Meet Job Requirements – This includes failure to meet statutory prerequisites (e.g., required education, qualifications, certificates) or employer’s requirements (e.g., language skills, computer literacy). Poor work performance repeatedly warned about by the employer in writing can also be grounds. The employer must give the employee at least 12 months to remedy deficiencies before termination.

• Breach of Legal Duties by the Employee – Termination is possible if the employee has been convicted of an intentional criminal offense punishable by imprisonment exceeding one year, or for a work-related intentional crime punishable by imprisonment of at least six months. Violation of legal duties may also justify termination.

• Violation of Temporary Sick Leave Regime – Breach of the rules during the first 14 days of sick leave (e.g., failure to stay at the place of residence or exceeding permitted outings). Not every violation leads to termination; it must be serious enough to disrupt the sick leave.

Notice Period for Termination by the Employer

Upon receipt of the termination notice, the statutory notice period begins. The notice period starts on the first day of the calendar month following the delivery of the notice and ends on the last day of the relevant calendar month. For example, if termination is delivered on April 15 due to organizational changes, the notice period starts on May 1 and ends on June 30. The employee continues working and receiving salary during this period.

The minimum notice period is two months. It can be extended by agreement with the employer, usually stipulated in the employment contract.

Protected Periods for Employees as an Obstacle to Termination

The law protects certain categories of employees by prohibiting termination during so-called protected periods. This includes employees on temporary sick leave, pregnant employees, employees on maternity leave, and employees on parental leave.

Examples of termination possibilities during protected periods:

• Pregnant employees may be terminated only if the employer is closing or if the employee violates legal duties.

• Employees on temporary sick leave are protected against termination due to organizational reasons, loss of fitness for work (due to work injury or other reasons), or failure to meet job requirements.

• Parents on parental leave have additional protection against termination for violating the sick leave regime.

However, the prohibition on termination is not absolute. For example, in the event of employer closure, all employees may be terminated, including those normally protected by the law. This is logical because if the company ceases operations, maintaining employment relationships is impossible.

How to Challenge an Invalid Termination by the Employer

If you believe your termination is invalid, you can challenge it:

• Inform the employer that you consider the termination invalid and insist on continuing employment. This clearly signals that you do not accept the termination and regard it as unjustified.

• File a lawsuit with the court. To have a chance of success, the lawsuit must be filed within two months from the date the employment relationship was supposed to end. After this period, you lose the right to challenge the termination. You may file the lawsuit yourself or seek assistance from us or another legal representative. If you do not challenge the termination, even an unlawful termination will be considered valid.

Severance Pay for Employees upon Termination by the Employer

Severance pay is a one-time financial payment granted upon the termination of employment under circumstances prescribed by law. It serves as support during the transition to a new job or a period of unemployment.

Entitlement to Severance Pay arises if the employment relationship is terminated due to:

• Closure or relocation of the employer;

• Organizational changes;

• Or if the employee loses their fitness for work as a result of a work injury.

How is Severance Pay Calculated?

The amount of severance pay depends on the length of the employment relationship:

• At least one average monthly salary if the employment lasted less than one year;

• At least two average monthly salaries if the employment lasted between one and two years;

• At least three average monthly salaries if the employment lasted more than two years.

This applies to termination due to closure or relocation of the employer or for organizational changes.

If termination is due to loss of fitness for work caused by a work injury or occupational disease, severance pay shall be at least twelve times the average monthly salary.

You may agree with the employer on contractual severance pay. In this case, severance will be paid even if termination is based on other reasons—for example, loss of fitness for work not caused by a work injury.

Know Your Employee Rights

In case of dispute, the employer is obliged to prove the reasons for termination. Always keep a copy of the termination notice and other relevant documents. In more complex cases, it is advisable to seek legal assistance. If in doubt, we recommend having the termination reviewed by a lawyer to determine its validity.

Contact Employee Rights

📞 Phone: +420 773 014 007
📧 Email: info@pravozamestnance.cz
🏢 Via contact form

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