The Labour Code lays down specific and mandatory rules that employers must observe when terminating employment contracts. Breaching these rules may result in the unlawful dismissal of workers or employees. Disciplinary dismissals are most often challenged before the court, since termination of the employment relationship on account of breaches of labour discipline has serious consequences for the worker or employee in future job applications.

A large proportion of court cases for unlawful dismissal are related to the termination of employment contracts on grounds frequently used by employers, such as closure of all or part of the enterprise, reduction in the volume of work and staff redundancy. Common breaches by employers include the absence or improper conduct of the mandatory selection procedure, service of termination orders lacking the required particulars, failure to observe the rules on preliminary protection of certain categories of workers and employees, and incorrect calculation of time limits.

Claim to set aside an unlawful dismissal

When a worker or employee considers that their employment contract has been terminated unlawfully, they are entitled to seek judicial protection by bringing a claim for the dismissal to be declared unlawful and set aside. If the court finds that the dismissal was unlawful, the employment relationship is deemed never to have been terminated. This leads to a number of favourable consequences for the worker/employee, including recognition of the period during which they were without work as employment and insurance service. The employer must pay the corresponding pension contributions for that period.

Time limit for bringing the claim

The statement of claim to set aside an unlawful dismissal must be filed within two months from the date of service of the order terminating the employment relationship. The claim may be filed with the district court at the employer's registered seat or with the court at the location of the worker's usual place of work.

Additional claims in the event of unlawful dismissal

In most cases, the claim for protection against unlawful dismissal is combined with two further claims:

  1. Claim for reinstatement

    • When the worker or employee wishes to continue working for the same employer, the court may reinstate them in the position held, if it sets aside the dismissal as unlawful. If, during the court dispute, the employment contract was for a fixed term and that term has expired, the claim for reinstatement will be dismissed.
    • The worker must report for work within two weeks of receiving notice of reinstatement from the court. Even if the staff post for the position has been abolished, the employer is obliged to reinstate them.

  2. Claim for compensation for the period of unemployment

    • The worker may ask the court to order the employer to pay compensation for the time during which they were without work or worked in a lower-paid position. The compensation is calculated on the basis of the gross remuneration or the difference in remuneration.
    • The maximum period for which compensation may be claimed is six months from the date of termination of the employment contract.
    • This claim may also be filed separately, including after the conclusion of the case challenging the dismissal. Unlike the claim to set aside the dismissal, which must be filed within a two-month period, the claim for compensation may be brought within a three-year period.

Procedural particularities and fees

Workers and employees are exempt from paying state fees and costs in unlawful dismissal cases, including for court expert examinations. The only cost obligation is the attorney's fee for legal defence.

Time limits in the court proceedings

These cases are heard under the "fast-track proceedings" procedure, which means that the court is obliged to hear them within shortened time limits. The duration of the cases is usually between three and six months.

Should you need legal advice or assistance in connection with the termination of employment contracts and protection against unlawful dismissal, contact us on telephone 0887550706 or by e-mail: [email protected]