In Moldova, the Labour Code outlines the legal requirements for notice periods during employment termination. The specific timeframe depends on the reason for termination and whether the employee or employer initiates the separation.

Notice Period for Employer-Initiated Termination

The Labour Code dictates different notice periods based on the employer's reason for termination:

• Standard Termination: In most cases, employers must provide employees with one month's written notice before termination.
• Redundancy or Business Closure: If the termination is due to redundancy or closure of the business, employers are required to provide two months' written notice.

Additional Considerations:

• Summary Dismissal: In cases of serious misconduct by the employee, employers may dismiss them immediately without notice.
• Employee Rights During Notice Period: During the notice period, employees retain their right to work and receive their regular wages. The employer must also grant them one day per week to search for new employment while still receiving their average wages.

Notice Period for Employee-Initiated Termination

Employees are generally required to provide 14 days' written notice to their employer if they intend to resign.

Exceptions:

• Fixed-Term Contracts: Employees with fixed-term contracts may be subject to different notice periods as outlined in their individual contracts.

In Moldova, labor laws grant employees the right to severance pay under certain circumstances related to employment termination.

Situations Warranting Severance Pay

Employees in Moldova are typically entitled to severance pay in the following situations, as outlined in Article 89 of the Labour Code of the Republic of Moldova:

• Liquidation of the Enterprise: This applies if the business or organization is closing entirely.
• Reduction of Staff: This applies when positions are eliminated due to economic reasons or restructuring.

Severance Pay Calculation

The Labour Code of Moldova stipulates the following method for calculating severance pay:

• Amount: The severance pay is equivalent to one average weekly wage for each year the employee has worked at the company.
• Minimum: The severance pay cannot be lower than one average monthly wage.

Other Factors to Consider

• Collective Agreements: Some collective labor agreements may provide for more generous severance pay benefits.
• Taxation: Severance pay in Moldova is generally subject to income tax.

Illustrative Example

Consider an employee who has worked at a company for five years and their average monthly wage is 10,000 MDL. In the event of redundancy, their severance pay entitlement would be calculated as follows:

• Average weekly wage: 10,000 MDL / 4.33 = Approximately 2,309 MDL
• Severance pay for five years: 2,309 MDL/week * 5 years = 11,545 MDL

Moldovan labor law outlines a structured process for employment termination, with protections for both employees and employers. The Labour Code of the Republic of Moldova specifies valid reasons for employment termination. These include mutual agreement, expiry of a fixed-term contract, employee resignation, and employer-initiated termination. The latter can be due to reasons such as business or organizational restructuring, redundancies, the employee's unsatisfactory performance or lack of qualifications, repeated violations of job duties or internal regulations, or other serious misconduct by the employee.

Documentation and Finalization

The termination notice must be provided in writing, outlining the reason for termination. Employees are entitled to receive their final paycheck, including any outstanding wages and vacation pay. Employers must update the employee's work-record card with the termination details.

Additional Considerations

In specific scenarios, such as collective dismissals, the employer might need to obtain consent from the trade union. Employers cannot dismiss employees for reasons of discrimination, pregnancy, or exercising their legal rights. If disputes arise during the termination process, employees can seek resolution through mediation or legal action.