The employer may unilaterally terminate the employment contract only for valid reasons specified in the Employment Contracts Act, while adhering to the notice periods prescribed by law. The employer cannot terminate the employment contract for any other reasons.

The termination notice template is suitable for situations where the employer intends to terminate the employment contract with the employee for extraordinary reasons arising from the employee’s conduct.

In which cases can the employer unilaterally terminate the employment contract?
According to § 88 (1) of the Employment Contracts Act, the employer may unilaterally terminate the employment relationship only for a valid reason arising from the employee, which makes it unreasonable to expect the continuation of the employment relationship. The law specifically recognizes the following valid reasons:

• The employee has been unable to perform their duties for an extended period due to a health condition that prevents the continuation of the employment relationship (decreased work capacity for at least four months).
• The employee has been unable to perform their duties for an extended period due to insufficient skills, unsuitability for the position, or inability to adapt (reduced work capacity).
• The employee, despite a warning, has disregarded reasonable orders from the employer or violated work obligations (for future disputes, the warning should be in writing).
• The employee has been at work under the influence of alcohol, narcotics, or psychotropic substances despite a prior warning from the employer.
• The employee has committed theft, fraud, or any act that has caused the employer to lose trust in them (e.g., defaming the employer in front of clients).
• The employee has caused a third party to lose trust in the employer (e.g., customers or business partners).
• The employee has intentionally and significantly damaged the employer’s property or created a risk of such damage.
• The employee has violated confidentiality or non-compete obligations.

What are the notice periods for terminating an employment contract?
In general, when terminating an employment contract for extraordinary reasons, the employer must follow the notice periods set out in § 97 (2) of the Employment Contracts Act, which are based on the length of the employee’s service:

• Less than one year – at least 15 calendar days
• One to five years – at least 30 calendar days
• Five to ten years – at least 60 calendar days
• Ten or more years – at least 90 calendar days

In exceptional cases, where it is unreasonable to expect the employment relationship to continue until the end of the notice period, the employer may terminate the contract without notice under § 97 (3) of the Employment Contracts Act. For example, if the employee is found to have embezzled company funds and there is reason to believe that they may cause further harm during the notice period, the employer may terminate the contract immediately.

In which cases is the employer not allowed to terminate the employment contract?
The reasons that are not considered valid grounds for extraordinary termination by the employer are listed in § 92 (1) of the Employment Contracts Act. The employer cannot terminate the employment contract on the grounds that the employee is:

• Pregnant
• Fulfilling important family obligations (e.g., on paternity or parental leave, caring for a child under three years old, or caring for a parent)
• Temporarily unable to work due to a health condition (e.g., on medical leave)
• Representing other employees (e.g., acting as a union representative)
• Performing compulsory or reserve military service
• Refusing to switch from full-time to part-time work or vice versa.

Does the employer need to sign the termination notice?
The termination notice must be made in a form that allows for written reproduction (e.g., a properly justified notice sent via email). It can also be presented in written form with a handwritten signature.