Termination of the Employment Relationship of a Laid-off Employee
During a lay-off, employees are entitled to terminate their employment contract without notice regardless of its duration. This right involves both regular employment contracts and fixed-term contracts.
If the date when the lay-off ends is known by the employee, this right shall not apply for seven days preceding the end of the lay-off period. During the last seven days of the lay-off the employee can, however, terminate the employment contract valid until further notice using the notice period agreed upon in the employment contract.
If the employer terminates a laid-off employee's employment contract by giving notice so that the contract ends during the lay-off, the employee is entitled to pay for the period of notice even though he/she is not working.The employer may deduct a pay sum due for 14 days from the pay for the notice period if the employee has been laid off using a law- or contract-based lay-off notification period of more than 14 days.
Employees who terminate their employment contract after the lay-off has lasted continuously for a minimum of 200 days are entitled to their pay for the notice period as compensation. These terminations resulting from long-term lay-offs are considered as employer-based, so the notice period’s pay is determinated according to the employer’s notice period.The employer may deduct a pay sum due for 14 days from the pay for the notice period if the employee has been laid off using a law- or contract-based lay-off notification period of more than 14 days.
The employee has the above described right to the notice period’s pay only if the lay-off has lasted continuously for a minimum of 200 days. If there are working periods in between the lay-offs, the accrual of lay-off days is aborted and after the working period the accrual begins from the start again. In situations where the employer calls the employees to work only in order to evade the provisions, the lay-off is considered to last continuously without breaks.