Rules for dismissal of employee

All good must come to an end and so also employment. The dismissal of an employee is not a dance of roses but it is an evil must that is part of the entrepreneur’s and company manager’s lot. The reasons for dismissal can be many and the circumstances determine which rules apply. Are you sitting in a seat where someone in the workforce has to go? Read on to learn what applies when you terminate staff in your business.

Requirements for grounds on dismissal

We have a tradition of protection for workers and to terminate someone is not simply. The termination of employment is governed by the Employment Protection Act (LAS). In short, you can say that you must have reasons for dismissing an employee, as long as it is not a probationary period. The reasons may be due to the company and then there is a lack of work, or they relate to the employee’s behavior which leads to dismissal or dismissal for personal reasons. Let’s take a closer look at the provisions surrounding each.

Lack of work

Lack of work is the most common reason for dismissal and means that the company no longer has the opportunity to offer a workplace to the employee. It can be due to several reasons such as for example:

  • The company is in an economic crisis, which means that wages can no longer be paid.
  • A change in processes that makes the tasks no longer needed.
  • That part of the business is no longer a priority when investments go elsewhere.

Therefore, in order for the employer to base a dismissal on a lack of work, the position is required to disappear. The company cannot terminate a person because there is a lack of work and then replace him with another who receives the same job. Can you redo the job description and get around the problem? Yes, you can, but you risk being liable if it is obvious what has happened.

Last in, first out

It is therefore restructuring or financial problems in the organization that cause a dismissal due to lack of work. If the choice to terminate is between several employees with similar duties, it is the classic principle “last in, first out” that governs. It means that the person who last joined the workforce should leave first.

However, there are exceptions for smaller organizations. If your company has fewer than ten employees, you must exclude two people from the list. Thus, you have eight employees and have to terminate one due to the fact that cash flow is not what it should, you can keep the two system developers you hired last fall, even if they have the shortest time in the workplace.


Even if a position disappears, there may be other services within the organization that suit the employee’s competence. As an employer, you have an obligation to offer relocation opportunities. Working conditions such as salary and actual duties must not correspond to previous service.


For personnel who have been employed for more than twelve months in the last three years, there is something called preferential rights. It means that during nine months after the dismissal, the employer is obliged to employ the dismissed person before anyone else in positions that are in line with the person’s competence.

But the right does not come into force automatically, it applies if it is agreed in advance, or if the person notifies his claim.


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