Grounds for Terminating Employment Relationships

An employment relationship may come to an end in various ways, e.g. by an agreement between the employee and the employer or at the end of a notice term or immediately.

Termination of the employment at the expiration of a fixed-term employment relationship does not require any special actions by the employee or employer. The contract end when the fixed term ends or the job the parties have agreed upon is ready. There is no need e.g. for notice. For further information, see [Termination of Fixed-Term Employment Contracts]⁠.

An employment relationship may be terminated during the probation period at the employee’s or employer’s initiative, without the need to establish any particular ground for the termination. In addition, there is no need to observe any time limits during the probation period but the employment relationship may be terminated with immediate. For further information, see [Termination of Employment Contract during Trial Period]⁠.

An employment relationship may be terminated by agreement between the employee and employer, whereby there is no need to consider the termination from a legal point as it is done voluntarily by both parties. For further information, see [Termination of the Employment Contract by Agreement]⁠.

An employment relationship may also be terminated unilaterally either at the employer’s or employee’s initiative. The employer may terminate an employment relationship for production-based and financial reasons that are unrelated to the employee or for reasons related to the employee. If the employment relationship is terminated for production-based or financial reasons, e.g. because the availability of work has decreased, it may be terminated to end after the notice period. For further information, see [Terminating the Employment Contract Based on Production-Related or Financial Reason]⁠.

If the employer terminates an employment relationship for reasons related to the employee, the employment relationship may end either by terminating it, whereby it will end after the notice period, or by cancelling it, in which case the employment contract is terminated immediately.. The employer’s right to terminate the employment contract by cancelling it requires a serious breach by the employee of the employment conditions. For further information, see [Termination Grounds Related to the Employee]⁠.

An employment relationship may also end at the employee’s initiative. The employee may terminate the employment relationship without the need to give reasons to the employer. In these circumstances, the employment relationship terminates at the expiration of the notice period, as set out in legislation, in the collective bargaining agreement or as agreed between the employer and employee. For further information, see [General Notice Periods]⁠. The employee may cancel the employment contract if the employer seriously breaches the conditions of employment in which case the employment relationship terminates immediately. For further information see [Termination of Employment Relationships at the Employee’s Initiative].⁠

This chapter will also briefly consider how a transfer of business affects employment relationships. For further information see [Termination of an Employment Relationship during Transfer of Business]⁠.