The employer's and employee's rights and obligations in connection with the termination of the employment relationship primarily depend on the form of termination and the provisions of the individual or collective agreement. Employment contracts may be terminated mutually, at the end of the contract period (if it is a fixed-term temporary contract), by the employee, or by the employer for objective, economic, or disciplinary grounds. Individual and collective bargaining agreements may stipulate the circumstances under which an employment relationship will cease.
Fixed-term contracts terminate when the parties agree on an expiration date or when the service is completed. Employees are entitled to compensation of 12 days' wages per year worked at the end of a fixed-term contract. If the temporary contract is longer than one year in duration, the party canceling the contract must give at least 15 days notice.
Employees can end their employment relationship by quitting, either freely or involuntarily, or by abandoning their job, or by being fired for cause. When an employee is let go for cause, he or she is entitled to compensation equal to 33 days of salary for each year of service plus "finiquito."
Employers may remove an employee for any of the objective grounds specified in the Workers' Statute, including employee incompetence, failure to adapt, collective dismissal, or absences from work. Employers must present an employee with a termination letter that details the reason for the employee's dismissal and the date of the employee's final day of employment. Employees are entitled to 15 days' notice and compensation, often known as indemnification. Compensation is 20 days' salary each year of service, up to a maximum of 12 months, at the moment notice is given. Employers may also grant compensation in place of notice.
Employers have the authority to discipline an employee up to and including dismissal for a variety of reasons, including repeated unexcused absences, disobedience, physical or verbal abuse directed at the employer or a coworker, or sexual harassment. The dismissal must occur within 60 days of the employer being aware of the conduct and within six months of the incident. In this case, no remuneration is required, and the employee is not entitled to notice of termination. However, if the employee is a union member, the employer is required to notify the union.
Employers are required to provide 15 days' notice, and if notice is not provided, payment in lieu of notice shall be made.
Employers should compensate employees with 20 days of salary per year of service, up to a maximum of 12 months. If a judge rules that the dismissal was unjust (i.e., without cause), the employer may reinstate the employee or make a statutory severance payment. Employees who are laid off are entitled to a legal severance payment and written notice of the contract's termination in advance. Severance pay is not payable to an employee who is terminated for disciplinary reasons.
The probationary period varies depending on the Collective Agreement in place at the company. The common practice is two months, but graduate technicians are usually probed for a 6 month period.