Fixed-term contracts are typically terminated upon expiration and may be canceled early only for exceptional circumstances, most frequently substantial misconduct on the side of one of the parties. An indefinite contract may be cancelled by the parties agreeing to do so, or by either party giving the required notice time. All termination notices must be in writing and include a rationale for the termination. If the employer wishes to terminate the contract, the employer must provide a legitimate reason, which may be economic or personal in nature.
When an employer terminates a contract, ordinary employees receive one month's notice, supervisors and supervisory-level employees receive two months' notice, and executives receive three months' notice. Additionally, an employer may fire an employee without notice if the employer has just cause, such as unjustifiable absence, violation(s) of professional obligations, gross negligence, or commission of a criminal or civil infraction. Employers must first send an employee a letter stating why they are dissatisfied with their performance, save in the most egregious circumstances of wrongdoing. A minimum of 48 hours must be allowed for the employee to react.
When terminating an indefinite contract, the majority of employees must provide 15 days' notice, while executives must provide a minimum of two months' notice.
Although severance pay is not a statutory right, it is mandated by the national interprofessional collective bargaining agreement. The amount is expressed as a percentage of the employee's monthly total compensation per year of service.
Three-month probationary periods for executives and one-month probationary periods for non-executives are permitted and may be renewed.