A fixed-term contract may be canceled prior to its expiration date if both the employer and employee agree. Both the employee and the employer must sign an agreement in front of a labor inspector to accomplish this. If neither party agrees, the employment contract cannot be canceled save for egregious misbehavior or force majeure.
A written notice must be issued in the case of indefinite employment contracts. If the employer initiates the dismissal, the employer must demonstrate fair cause. Employers are required to inform the Ministry of Labor.
When an employee is terminated, he or she has the right to obtain a certificate of employment detailing the dates of employment and details about the role held. If the employer refuses, the employer must compensate the employee for lost wages.
The notice period is determined by the duration of employment and the structure of the employment contract. Employees who work for less than six months on indefinite employment contracts are entitled to a seven-day notice period. For employment lasting between six months and two years, a 15-day notice period will apply. A 15-day notice period will be required for employment spanning six months to two years. Employees who have worked for the organization for two to five years will receive a one-month notice period. After five to 10 years of employment, there will be a two-month notice period. Employees with more than ten years of service must give three months' notice. No notice period will be required for fixed-term contracts of up to six months. For those with six months to one year of employment experience, a ten-day notice period will be required. Employees who have worked for the company for more than a year will receive a 15-day notice period. The employee is entitled to two days of paid leave per week during the notice period to conduct job searches.
If the employer fails to provide written notice or does not adhere to the notice period, the employee must be compensated for the amount earned during the notice period. Severance pay will be tantamount to 7 days' earnings for work lasting more than six months but less than one year. Severance pay for employees with more than one year of service will be 15 days' wages for each year of service. The severance pay is capped at a total of 6 months' worth of wages.
Probation periods vary according to the employee's skill level. Regular employees are subjected to a three-month probation. Skilled employees are subjected to a two-month probation. Unskilled employees are subjected to a one-month probation.