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Substantive Labour Code 1950; Section 47, 61 and 62 (Notice Requirement)

Substantive Labour Code 1950; Section 47, 61 and 62 (Notice Requirement)

In accordance with the labour law employment of an employee terminates due to death of the employee; or mutual consent; or expiration of the agreed terms; or completion of the work or contracted work; or liquidation or definitive shutdown of the company; suspension of activities by the employer for more than one hundred twenty (120) days or by a court’s decision.

A fixed term employment contract of more than 1-month duration terminates by providing a prior notice of at least 30 days. In case of just cause, the employer provides a termination notice of at least 15 days for certain grounds on which contract termination is based. The party that unilaterally terminates the employment contract, must notify the other party about the about the date of termination along with a valid reason of termination.

Either party may terminate the employment contract by serving a written notice or paying in lieu thereof. For terminating an indefinite term contract, the required notice period is 30 days. The just causes are worker worker’s conduct, capacity and aptitude related. An employer may terminate the employment contract of a worker if he deceived the employer by presenting false certificates of his admission in employment or for gaining some other improper advantage; an act of violence, insult, bad treatment or serious insubordination on the part of worker; an immoral or wrongful act committed by the worker; disclosure of business secrets by the worker; non-performance on the part of worker; deficient work in relation to capacity of worker; ineptitude of worker; disability or some other chronic (non-occupational) disease; etc.

An employment contract may contain extra information on (job or industry specific) conduct which is prohibited for a specific job or industry and may lead to worker’s dismissal. An employee may also terminate an employment contract if he/she has suffered deception by the employer regarding working conditions; any act of violence, threats or serious ill treatment inflicted by the employer against the employee or members of his family; any act of the employer or his representatives to induce the employee to commit an unlawful act or act contrary to their political or religious convictions; etc. Labour law requires payment in lieu of notice in case a party fails to provide the required notice period to the other party or the notice period is partially fulfilled.

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