Depending on length of service (six weeks to five months’ salary payment) according to law as well as compensation payments for unused holidays. Deviating contractual agreements in favour of the employee are possible.
Basically from the first day of employment. A one month probationary period can be agreed upon during which the employment can be terminated by both sides with immediate effect without further (monetary) consequences (unless the termination was discriminatory).
In cases where an employer termination is found to be illegal, the employee is entitled to reinstatement or, if impossible, to double the statutory severance pay.
If the employment law relationship has been invalidly terminated, the employee may notify the employer in writing that he insists on being further employed. The employment relationship shall continue to exist and the employer shall be obliged to provide the employee with compensation for wages. The employee shall be entitled to compensation in the amount of the average earning from the date of notification to the employer until the time when the employer allows the employee to continue his work or when the employment relationship validly ends.
Invalidity of termination of an employment relationship may be claimed by both, the employer and the employee, at the courts no later than within two months of the date when the employment relationship was to end through such termination.
In order to avoid problems occurring especially in connection with delivery of a notice given by the employer an amendment to the Labour Code was adopted with the effectiveness as of 1 July 2020. According to this new regulation the employer is entitled to deliver the notice to the employee also through a postal service provider without the need to prove the unsuccessful delivery in person at the workplace or wherever the employee is found as this was required before the adoption of a new regulation.
England & Wales
Approximately £85,000 plus up to approximately £15,000 depending on age and years of service. Two years
Maximum amounts of damages fixed by the French labour Code in consideration of the employees’ seniority: from a maximum of one month’s gross remuneration for an employee having less than one year seniority to a maximum of 20 months’ gross remuneration for an employee having more than 29 years’ seniority (not including any damages on other grounds, such as moral harassment, overtime, etc).
No statutory law for damage compensation. Severance pay only if agreed to/employer decides to pay one (no statutory entitlement).
A dismissal needs to have a justified reason (operational, personal or behavioural reason) if the German Act Against Unfair Dismissal (KSchG) applies. This is the case as soon as employee has been with the company for 6 months and more than 10 employees are employed in the operation.
If the dismissal is void and the claim of the employee successful, the employee will have to be re-employed or the employer needs to buy-out by a severance payment. Rule of thumb to calculate such severance pay is: 0.5 -1 monthly gross salary x years of service.
Smaller businesses up to 10 employees are not subject to unfair dismissal protection.
In the case of an unreasonable dismissal, the Labour Tribunal may order:
- terminal payments (for a continuous contract of not less than 24 months)
In the case of an unreasonable and unlawful dismissal, the Labour Tribunal may order:
- terminal payments
- an award of compensation not exceeding HK$150,000
Once the probation period has expired, the termination of the employment relationship shall be justified with at least one of the listed reasons of the Act (in connection to the employee’s behaviour in relation to the employment relationship, or employee’s ability or the employer’s operations) which means the employer must provide a specific reason for dismissing an employee within a certain time frame following the occurrence of the cause.
In case of wrongful termination of an employment relationship by the employer, the employee is entitled for compensation of damages. The compensation paid by the employer for loss of income from employment payable to the employee may not exceed twelve months’ salary. In addition the employee is entitled to severance pay as well, if his employment relationship was wrongfully terminated. The concrete amount of the severance payment depends on the length of service at the employer (beginning with one month’s salary after three years and up to six month’s salary after 25 years).
Notwithstanding any express contractual right to terminate, employees have statutory protection against unfair or discriminatory dismissal. Subject to exceptions, where an employee has one year’s continuous service, they can bring a claim for unfair dismissal. If successful, the Workplace Relations Commission of Ireland may award re-instatement, re-engagement or compensation of up to two years’ gross remuneration. Compensation is the most common award. Compensation is calculated on actual and projected future loss only, and an employee must mitigate loss by making efforts to secure alternative employment. Few cases result in the maximum award.
In case of unfair dismissal, usually the labour courts apply an economic sanction. It is an indemnity which varies within certain different ranges depending on: (1) company’s headcount; (2) employee’s hiring date; and (3) employee’s level of classification.
The company could be condemned to reinstate the employee, paying an addition indemnity, only in few cases of unfair dismissal provided by law and in case of void dismissal.
Statutory compensation (severance payment) of 1/3rd of a monthly salary (including average bonuses/variable pay) per year of service applies upon termination. There is no requirement for certain years of service to become eligible for this (so from commencement of employment). In case of unfair dismissal (which could be granted in case of serious imputable acts of the employer), there is no maximum to the amount of “fair compensation”. These amounts vary from case to case, and are hard to predict upfront.
Reinstatement to work with the former conditions or monetary compensation. This compensation amounts to the remuneration due for a period ranging from two weeks to three months not less than the remuneration for the period of notice (statutory max. three months), unless the dismissed employee enjoyed special statutory protection against termination (e.g. pregnancy or maternity leave), therefore compensation might be greater.
Compensation for wrongful dismissal should consist of:
i. an amount representing the loss of income suffered, capped at three months of the employee’s base pay
ii. an amount reflecting the harm caused to the employee due to the wrongful dismissal, capped at two months of the employee’s base pay but subject to a 50% uplift/reduction depending on aggravating/mitigating factors.
The above compensation is also subject to the Employment Claims Tribunal’s jurisdictional cap of S$20,000 or S$30,000 (if mediation was first pursued by the employee).
Managers and executives that were dismissed with notice of salary in lieu of notice can only file a wrongful dismissal claim if they have served their employer for at least six months.
Where the court decides on the invalidity of the termination of employment, the employee may receive wage compensation from the day he/she announced the employer that he/she insists on keeping a job until the employer enables the employee to keep working, or until a court rules on employment termination. Such a period may not exceed 36 months.
If this period exceeds 12 months, the employer may ask the court to reduce wage compensation down to 12 months. The entitlement of the employee to receive wage compensation for unfair dismissal is not conditional upon the length of his/her service at the employer.
Reinstatement to work under the same conditions as before, and compensation for the entire period of forced absence in the amount of the average monthly wage, but not more than for one year.
United Arab Emirates
The UAE Labour Law provides that a court may award compensation of up to three months’ remuneration (i.e. basic salary including allowances) for arbitrary dismissal, in addition to all other statutory/contractual termination payments. No minimum length of service is required to claim arbitrary dismissal after the expiration of the probation period.
In the DIFC, there is no unfair dismissal remedy. The only potential form of compensation available to an employee under the DIFC Employment Law is in relation to unlawful discrimination.