The Right to Terminate an Employment Contract During the Probationary Period: Benefits and Limitations for Employees and Employers
Oct 22
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The probationary period represents an important phase in the employment relationship, allowing both the employee and the employer to get acquainted and evaluate the collaboration before establishing a permanent employment relationship. This period is regulated by the Labor Relations Act and entails specific rights and obligations for both parties, particularly regarding the possibility of terminating the employment contract.
What is a Probationary Period and Its Duration?
A probationary period is an option that the employee and the employer may agree upon when concluding the employment contract. Its purpose is for the employee to demonstrate their abilities and skills for the position, while the employer evaluates their suitability for the job.
According to the Labor Relations Act, the duration of the probationary period cannot exceed four months. In certain cases, such as justified absence from work (e.g., due to illness), the probationary period may be extended. For specific types of work, such as seasonal work, the probationary period is significantly shorter and may last only three working days.
It is important to note that the employment contract, which must be concluded in writing, must include the provision for the probationary period, including the salary and its duration.
The Right to Terminate the Employment Contract During the Probationary Period
The probationary period is characterized by simplified conditions for terminating the employment contract, which represents both a benefit and a limitation for both parties.
For the Employee:
The employee has the right to terminate the employment contract during the probationary period with a notice period of only three working days. This provision provides significant flexibility for the employee.
Benefits for the Employee in Probationary Employment Agreements:
Quick exit from unsuitable work: If the employee determines that the position, work environment, or working conditions are not suitable, they can quickly end the employment without long notice periods.
Minimizing risk: Allows the employee to accept a new job with lower risk, knowing they can easily withdraw if expectations are not met.
Limitations for the Employee in Probationary Employment Contracts:
Short adjustment period: The short notice period also means the employee has less time to adapt to the new job before making a decision.
No severance pay: In case of termination during the probationary period, the employee is not entitled to severance pay, which is otherwise provided for termination due to business reasons after longer tenure.
For the Employer:
The employer also has the right to terminate the employment contract during or after the probationary period.
Benefits for the Employer in Probationary Employment Agreements:
Effective candidate assessment: The probationary period allows the employer to assess the employee’s abilities, skills, and adaptation to the work environment and job requirements.
Easy termination for unsuccessful probation: Based on the assessment of an unsuccessful probation period, the employer can terminate the employment contract at the end of the probation.
Specific to seasonal work: For seasonal work, the employer may terminate the probationary employment contract within three days from the contract’s commencement.
Limitations for the Employer in Probationary Employment Agreements:
Objective assessment required: Termination must be based on an objective assessment of unsuccessful probation.
Short evaluation period: The maximum duration of four months may limit a full evaluation for more complex roles.
Termination procedure: If the employment contract contains a probation period, the employer may give notice only at the end of the probation period based on an objectively poor assessment of the employee. The only exception is in cases of violation of work rules and discipline.
Formalities for Termination
Termination of the employment contract must be made in writing. The employer is obliged to deliver the notice personally to the employee, typically at the employer’s premises or the employee’s residence. The notice period begins the day after the notice has been delivered.
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Conclusion
The probationary period is a two-way street offering the opportunity for mutual assessment. While it provides flexibility and simplified termination procedures, it is important for both employees and employers to be aware of their rights and obligations, as well as the formal requirements for contract termination, to avoid potential disputes. Clearly defining the terms of the probationary period in the employment contract is essential for transparency.
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