Blog 16.04.2020

Coronavirus pandemic, and employee layoff

State of epidemic emergency affects all economy sectors. Many entrepreneurs suspend their activity, and ones close, not seeing future prospects. Other solution may be optimization of costs, which repeatedly related to FTE reduction. Of course such a decision is not easy to make, but usually it is the best solution.

Can I terminate my employment contract because of a pandemic?

More and more employers wonder about employees layoffs. Before making any decisions, labour code should be deeply analyzed and take a look at government’s recommendations.

If contract with employee was concluded for an indefinite period, employer can terminate the contract without giving a reason. Of course terminate of the contract must have specified period. Employer have right to remove workplaces, but he should inform why did he made such a decision. Within reduction of employment because of negative coronavirus effects for enterprise provides an adequate grounds for.

When it comes to removing one or few of many positions, it should be considered an objective criteria. It is about successes of employees, experience, education or seniority. What is more, if situation is related with pandemic, it has negative impact on company’s condition, it’s possible to implement group layoffs for enterprises hiring more than 20 employees. Otherwise regulations predict remove of individual positions.

Does employer can terminate the contract because of pandemic?

More issues wait for people, who work on mandate contract. Principal have right to terminate contract immediately because of important reason.  If due to pandemic amount of commissions drop significantly, it will be the main reason. However salary must be paid for person who has done his job.

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