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Employee – Employer Relationship: the Most Important Legal Highlights

Updated: Sep 23, 2020

Termination of the Employment Contract: Reasons for Termination?

There are several ways in which the employment contract can be terminated. Thus, the Labour Act specifies 8 (eight) ways of termination of the employment contract, namely: death of workers, death of employer of a natural person or the termination of a trade by force of law or removal of the sole trader from the register in accordance with special regulations, upon expiration of time for which a fixed-term employment contract was concluded, when the worker reaches sixty-five years of age and fifteen years of pensionable service, unless the employer and worker agree otherwise, by means of an agreement between the worker and employer, delivery of a final decision on recognition of invalidity rights, because of the complete loss of working capacity, by notice and by the decision of the competent court.

Job Contract Cancellation: What Do You Pay Attention To?

After receiving the decision to cancel the employment contract, whether it is a notice due to business reasons, a personally conditional dismissal, a dismissal conditioned by the concealed behaviour of employee or a dismissal due to dissatisfaction with the probationary period, the employee must pay special attention to the length of the notice period, whether he is obliged or relieved of work during the notice period, and to the amount of severance allowance in case the employee has been employed for more than 2 (two) years uninterrupted, as well as to the number of the day of unused holiday.

Termination of Employment Contracts and Damages?

It is necessary to note that in case the worker suffers damage at work or in relation to work, the employer is obliged to compensate the worker in accordance with the general regulations of compulsory law, and also refers to damage caused by the employer to the worker by the violation of his or her labour relations rights. If the court finds that the employer's dismissal is not allowed and it is not acceptable for the worker to continue his employment, the court will, at the request of the worker, determine the date of termination of the employment relationship and grant him damages amounting to at least three and at most eight stipulated or contracted monthly salaries of that worker, depending on the duration of the employment relationship, age and maintenance obligations charged to the worker.

If you would like to discuss any of the issues raised further please e-mail Ivan Župan at

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