Termination requires notice to be given and a written explanation of the reasons for termination. In the event there is serious misconduct on the part of the employee, no notice will be required before termination and the employee can be terminated immediately. The law does not oblige an employer to give the employee a chance to explain himself. Nevertheless, it is best practice to have a hearing during which the employee may respond to the notice.
An employer cannot terminate the contract of an employee in case of absence from work due to illness for up to 1 year. This period might be extended.
Notice Period
The statutory notice period is dependent upon the category of the worker. 1 month notice is required for regular full time employees. 3 months notice is required for executives, Supervisors, Technicians, and similar staff. 8 days notice is required for daily and hourly set up employees.
Severance Pay
Employees who have worked for at least 1 year are entitled to severance payments upon termination, unless in the case of gross misconduct. The Severance pay amount is determined by the duration of service and is calculated as a percentage of the monthly total compensation per year of service:
25% of monthly wage – 1 to 5 years of service
30% of monthly wage – 5 to 10 years of service
40% of monthly wage – 10+ years of service
Probation Period
The provisions for probationary periods in employment contracts are as follows:
8 days for the workers whose wages are fixed per hour or the day;
One month for employees other than executives;
3 months for executives
The probation period may be renewed once for the same duration. During the probationary period, the contract may be terminated at any time without notice or compensation by any party unless an agreement is made to the contrary.