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Articles

40 informative articles across 8 legal practice areas. Use the filter to find your topic.

Types of Employment Contract Termination

An employment contract may be terminated on just cause, valid grounds, or unlawfully. The type of termination determines the legal consequences for both parties.

Just-cause termination requires neither notice nor severance payment
Valid-grounds termination (economic or performance-based) requires notice and severance
Unlawful dismissal entitles the employee to claim reinstatement or compensation
An employee's just-cause resignation arises from unpaid wages, mobbing, or unsafe conditions
Termination notice must be in writing and state the reason clearly

Following the correct procedure before dismissal can prevent costly reinstatement or compensation claims.

Severance and Notice Pay

Severance and notice pay are significant payments due to an employee when employment ends in specified circumstances. The calculation method and entitlement conditions are set by statute.

At least one year of continuous service is required to qualify for severance pay
30 days' gross wages are paid for each completed year of service
Notice pay is due when the contract is terminated without proper notice
Notice periods range from two to eight weeks, depending on seniority
An employee who resigns generally loses the right to severance pay

To avoid calculation errors, each employment period, pay increase, and benefit should be carefully documented throughout the employment relationship.

Workplace Accidents and Compensation

A workplace accident can expose the employer to serious legal liability, even when fault is shared. Social security and civil compensation routes should be considered together.

The accident must be notified immediately to the Social Security Institution (SGK) and law enforcement
SGK classification as a workplace accident grants the employee important rights
The employee or their family may bring a claim for pecuniary and non-pecuniary damages in the labour court
The employer's failure to implement health and safety measures aggravates their liability
An actuarial expert report is decisive in calculating compensation

Photographs of the scene, witness statements, and medical records must be preserved carefully from the date of the accident.

Claims for Unpaid Wages

Where wages, overtime, annual leave pay, or bonuses are not paid, the employee may claim them through the labour court. The limitation period must be observed.

The limitation period for wage claims is five years
Overtime claims require proof of work beyond 270 hours per month
Cash payments made without documentation create evidential difficulties for the employer
Mediation is a mandatory preliminary step before the labour court
A collective bargaining agreement may entitle the employee to higher amounts

Payslips, bank transfer records, and shift schedules kept throughout employment are critical evidence in any future claim.

Annual Leave and Overtime Rights

The Labour Act regulates paid annual leave and overtime in detail. The use of these rights and claiming their monetary equivalent are subject to different conditions.

An employee who has completed one year of service earns 14–26 days' annual leave (based on seniority)
Annual leave cannot be converted to pay without the employee's consent, except on termination
Overtime must be compensated at a rate 50 percent above the ordinary hourly wage
An employee may not be required to work more than 270 hours of overtime per year
Overtime may alternatively be offset by time off in lieu

Maintaining written leave records and regular shift schedules is essential to resolving future disputes about these entitlements.

These articles are for general informational purposes only and do not constitute legal advice. Specific disputes should always be evaluated on the facts of the individual file.