Grounds for Contractual Lay-off

The employer and employee may mutually agree on lay-offs. Lay-offs may, however, be agreed only during the employment relationship in each individual case, but may not agree upon grounds which are more lenient than standard grounds.

The agreement on lay-offs must be done on the employer’s initiative. Agreements on lay-offs are only possible where such are necessary for the employer’s activity or financial position.There is no need to establish a productional or financial ground for contractual lay-offs. The employer and employee must however be unanimous whether or not employer's operations or financial standing require lay-offs.

Lay-offs based on contract must always be for a fixed term. The duration of the lay-off is, however, not limited to e.g. 90 days.