Cancellation Based on Grounds Related to the Employee’s Person
When an employment agreement is cancelled, the employment relationship terminates immediately without a notice period. From the employee’s perspective a cancellation is a severe action because of its rapid effect. Consequently, a cancellation is possible only when the behavior of the employee has been severely culpable. The employment relationship breach needs to be severe to constitute a cancellation ground, i.e. so severe that it would be unreasonable to expect the employer to continue the employment relationship.
According the law cancellation of an employment relationship requires an extremely weighty reason. A list of adequate grounds for cancellations is not provided by the law and therefore all situations must be weighted separately. Both employment agreements valid until further notice and fixed-term employment agreements can be cancelled.
Cancellation may be available when the employee:
has misled the employer when entering into the employment agreement
seriously breaches the competition prohibition
in a severe way reveals trade secrets of the employer
appears at work under the influence of intoxicants or uses intoxicants at the working place
steals employer’s property
seriously violates the employer’s, his/her family’s, his/her substitute’s or colleague’s honor or engages in violence towards them; or
endangers the safety at work on purpose or through negligence.
The above-mentioned reasons are only examples, which means, that other situations may also lead to cancellation. The circumstances are weighed as an overall assessment. The employer may, whenever the conditions for cancellation are fulfilled, also choose to use the less severe action, i.e. termination. If the employer cancels the employment relationship during the employee’s trial period, no grounds for cancellation are required, see The above-mentioned reasons are only examples, which means, that other situations may also lead to cancellation. The circumstances are weighed as an overall assessment. The employer may, whenever the conditions for cancellation are fulfilled, also choose to use the less severe action, i.e. termination. If the employer cancels the employment relationship during the employee’s trial period, no grounds for cancellation are required, see [Termination of an Employment Agreement during the Trial Period].
The right to cancellation lapses, if the employment agreement is not cancelled within 14 days from the date on which the contracting party was informed of the existence of a ground for cancellation.
The employer does not have to give the employee a warning before a cancellation, but he/she must reserve the employee the opportunity to be heard regarding the ground for the cancellation before the cancellation is carried out. For further information see The employer does not have to give the employee a warning before a cancellation, but he/she must reserve the employee the opportunity to be heard regarding the ground for the cancellation before the cancellation is carried out. For further information see [Termination Procedure].
If the employer cancels an employment relationship without a legitimate cancellation ground, the employer might be liable to compensate the employee. For further information see If the employer cancels an employment relationship without a legitimate cancellation ground, the employer might be liable to compensate the employee. For further information see [The Employer’s Liability to Pay Compensation for an Unlawful Termination of an Employment Agreement].