What is the new rule’s aim?
The objective of the Ministry of Labour’s Decree No. 765, 2015 is to achieve a transparent, fair and balanced employment relationship.
What has changed with regard to termination?
The terms of notification in both limited (short-term) and unlimited (open) contracts.
Can you elaborate?
There could be four different scenarios with a limited contract: completion of the contract period which is not more than two years; a mutual agreement between employer and employee to terminate the contract before its completion; decision by employer solely to terminate the contract before its completion; and decision by employee to resign before completion of the contract period. In the first two cases, if either party fails to comply with the rules, it will be considered as unlawful termination. In the next two cases, for either the employee or the employer to terminate the contract before the completion date, a notice period - no less than one month and not exceeding three months - is required. The party that decides to terminate the contract is obligated to continue with the work until the end of this notice period.
What about the ‘unlimited’ contract?
The conditions depend on whether either party desires to terminate the employment after granting the other party notice period not less than one month and not exceeding three months - unlike earlier when there was no upper limit. An employee must also comply with Federal Labour Law under Article 120 which covers breach of trust and other ethical issues.
