February 02, 2024
Employers often encounter the need for restructuring, business optimization or adaptation to new market conditions. One of the ways of adjustment is the business-conditioned termination of the employment contract, which represents one of the most sensitive segments of labor law. This article aims to clarify key aspects of business-related dismissal, including relevant legal provisions, procedure and employee rights.
Key concepts and elements
The business-related termination of the employment contract is defined by the Labour Act and is given in a situation when the need for a particular position has ceased. The cessation of the need for a particular workplace can be conditioned by economic reasons (e.g. falling revenues, falling orders, falling sales, recession, etc.), organizational reasons (e.g. the employer decided to reorganize his business and therefore assessed that some jobs were no longer needed) or technological reasons (e.g. implementing software or buying new machines led to a surplus of certain jobs).
For a business-related dismissal to be legal, it is crucial that the employer can prove that the need for a particular workplace has indeed ceased. If the employer would not be able to prove this, then the worker could initiate a litigation and ask to be returned to the workplace and to be paid a salary for the entire duration of the dispute, i.e. the difference in salary if during the duration of the dispute he was employed in another lower-wage workplace.
Decision-making process on dismissal
The Labour Act prescribes the procedure that the employer must follow when imposing a business-related dismissal, including the obligation to notify and consult with the works council (if any) and the obligation to inform employees about the reasons for dismissal. The employer is obliged to submit a written dismissal to the employee with clearly stated reasons for the dismissal.
If the employer violated the legal rules on the procedure for making a decision on dismissal, e.g. if he did not consult the works council or if he did not justify the decision on dismissal, then such dismissal would automatically be illegal and the worker could successfully initiate a litigation and ask to be returned to work. Therefore, it is very important for the employer to comply with these legal rules.
What do you do when you get a job-related dismissal?
The best thing you can do when you get fired is to consult a lawyer specializing in labor law. A good lawyer will quickly be able to analyze the situation and clarify what your further options are. If serious violations of the law by the employer are found, then it is clear that the so-called request for the protection of rights must be submitted, within 15 days from when you received your dismissal. If the employer would not change his decision upon receipt of the request for the protection of rights, then an action is filed with the competent court at the employer’s seat. On the other hand, if the lawyer judges that you do not have much of a chance, then it is better not to initiate a dispute and expose yourself to the risk of bearing litigation costs. In any case, the most important thing is that the documentation is reviewed by a lawyer who has a lot of experience in labor disputes, and a lot of experience with termination of employment contracts.
Concluding notes
Law Office Bistrović has been engaged in labor law for over 15 years and we have extensive experience in the field of cancellation of employment contracts, conducting disputes due to dismissal, and legal advice in the field of labor law. If you need a lawyer for labor law, contact us and you will get a quick cost estimate and expert analysis of your case. You can always contact us at:
