What lay-off grounds can the employer have and what is the maximum lay-off period?

According to the Employment Contracts Act, the employer shall notify employees of a lay-off a minimum of 14 days before the lay-off begins. The Employment Contracts Act recognises two grounds for lay-offs. The employer may lay off an employee if the work has diminished temporarily, in which case the maximum lay-off period is 90 days. The employer may also lay off an employee on financial or production-related grounds if the work has diminished permanently and substantially for a financial or production-related reason. In this case, the lay-off can be effective until further notice. If such a lay-off lasts longer than 200 calendar days, you are entitled to cancel your employment contract with immediate effect, and you are eligible to receive salary for the notice period, based on the employer’s period of notice.

If your employment contract is fixed-term, you may only be laid off if the reason for the fixed-term nature of your contract is working as a substitute for a permanent employee.

You are eligible for earnings-related unemployment allowance during the lay-off period, provided that you meet the condition regarding previous employment specified in the Act on Unemployment Security during your membership. In order to meet the condition regarding previous employment, you must have worked for at least 26 weeks during the 28-month reference period.

You are entitled to accept other work during lay-off. However, you must respect the prohibition on competing activity, which is applicable to most lay-offs. If the end date of the lay-off has not been specified in the lay-off notice, the employer must notify you of the resumption of work at least seven days in advance. If you have accepted other work during your lay-off, you have the right to cancel the other contract with a five-day notice period.

You are entitled to cancel your employment contract with immediate effect during lay-off, without a period of notice. However, this right ceases to exist two weeks prior to the end of the lay-off, if you have been notified of the end date. In such a case, you must comply with the period of notice specified in your employment contract.

If your employer terminates your employment during the lay-off period, the employer must apply the period of notice specified in your employment contract. You are entitled to your usual salary for the period of notice.