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Slovakia

Termination and Severance Policies

Learn about the legal processes for employee termination and severance in Slovakia

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Notice period

In Slovakia, the Labour Code provides the legal framework for notice periods during employment termination. The length of these periods can vary, depending on whether the termination is initiated by the employer or the employee, and the duration of employment.

Minimum Notice Periods

The Labour Code sets out minimum notice periods. While employers and employees can agree to a longer notice period in the employment contract, they cannot agree to a period shorter than the legal minimums.

  • General Notice Period: The minimum notice period is one month. This applies unless other stipulations are in place.
  • Extended Notice Periods for Employers: In certain situations where the employer initiates termination, the notice period is extended:
    • Company Restructuring or Relocation: If the employer is winding up, relocating, or the employee does not agree to a relocation, the notice period is at least two months if the employment lasted at least one year but less than five years. The notice period becomes at least three months if the employment lasted at least five years.
    • Redundancy or Employee Health: When termination is due to redundancy or the employee's health prevents them from continuing the work, the notice period follows the same extended structure as above: two months for employment between one and five years and three months for over five years.
  • Extended Notice Period for Employees: If the employee initiates termination and their employment lasted at least one year, they are required to provide a minimum two-month notice period.

Notice Period Start Date

The notice period begins on the first day of the calendar month following the receipt of the notice. For example, if an employee is handed a termination notice on April 15th, their official notice period starts on May 1st and ends on May 31st.

Severance pay

In Slovakia, the law outlines several circumstances where employees are entitled to severance pay (Slovak: odstupné) at the conclusion of their employment. The specific conditions and amount of entitlement are detailed in the Slovak Labour Code.

Eligibility for Severance Pay

Employees are entitled to severance pay if their employment is terminated due to the employer's organizational changes, the merger/division of the employer, relocation, or the employee becoming redundant. If an employee is no longer physically capable of performing their duties due to work-related illness or injury, they are entitled to severance pay upon termination. Employees who reach eligibility for a retirement pension (old-age or early retirement) can claim severance pay, but they must apply for their pension either before termination or within ten days after their employment ends.

Amount of Severance Pay

The severance pay amount is dependent on the duration of the employee's service with the employer:

  • For at least 2 years' employment: One month's average salary.
  • For at least 5 years' employment: Two months' average salary.
  • For at least 10 years' employment: Three months' average salary.
  • For at least 20 years' employment: Four months' average salary.

Additional Information

The employer is obligated by law to pay severance pay. Employment contracts or collective agreements may stipulate higher severance pay amounts, but cannot provide less than the legal minimum.

Termination process

The termination of an employment relationship in Slovakia is regulated by the Slovak Labour Code. The process can vary depending on how the termination is initiated.

Termination by Agreement

This is the simplest method, where both parties mutually agree to end the employment relationship. A written agreement must be reached, specifying the termination date.

Termination by Notice

Both the employer and the employee have the right to terminate an employment contract by providing notice.

Notice by Employee

An employee can terminate their employment relationship for any reason or without providing a reason. Written notice is mandatory, and it must be delivered to the employer.

Notice by Employer

The employer can only terminate an employment contract for specific reasons explicitly stated within the Labour Code. Some examples include redundancy, company restructuring or relocation, or the employee's inability to perform their job duties. Written notice, clearly stating the reasons for termination, must be delivered to the employee.

Immediate Termination

In specific, severe situations, either party can annul the employment contract with immediate effect. This type of termination is only permitted in the following cases:

  • Employer-Initiated: The employee is grossly breaching work obligations or convicted of a criminal offense related to their work.
  • Employee-Initiated: The employee's health is endangered due to workplace conditions, or the employer has been at least two months in arrears with salary payments.

If the conditions for immediate termination are met, termination must occur within two months after the party becomes aware of the grounds for it, and at the latest within one year of the event.

Probationary Period Termination

Employment during a probationary period can be terminated both by the employer and the employee, with a shorter notice period and without having to specify the reason. Both parties must provide written notification at least three days before the intended termination date.

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