When terminating a contract with an employee, managers need to know certain terms and notes, because this will help businesses avoid unnecessary risks. Here are 7 note when terminating labor contract that you need to "pocket" right away.
1. With advance notice
To ensure the interests of employees, before terminating the contract, the enterprise needs to give advance notice according to a certain period of time. This is one of 7 note when terminating labor contract is very important that businesses need to pay attention to. The specific notice time is as follows:
- At least 45 days for an indefinite term employment contract.
- At least 30 days for a fixed-term employment contract.
- At least 3 days for seasonal or job-based labor contracts with a term of less than 12 months.
And before notifying the termination of the labor contract, it is necessary to have an exchange with the representative of the labor collective at the establishment, and at the same time notify the Department of Labor, War Invalids and Social Affairs in advance. 30 days.
The enterprise needs to have a notice before terminating the contract with the employee
2. Developing a plan to use labor
When an enterprise terminates a contract with an employee, it means that the employee may face the risk of unemployment. Therefore, according to the provisions of the law, when an enterprise dismisses an employee because of changes in structure, technology or economic reasons, it is necessary to develop a labor use plan.
Besides, in the case of separation, merger or consolidation of an enterprise, if the enterprise does not use all the remaining employees, it is also necessary to develop a labor use plan. This is a necessary requirement to ensure the rights of employees.
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3. Termination of labor contracts on the basis of
1 in 7 note when terminating labor contract that is, there must be grounds for the termination of the labor contract. Specifically, this should be done in accordance with the provisions of the Enterprise Law.
In case the enterprise terminates the labor contract due to the employee's failure to meet the contract's work, it should be based on the level of non-completion. Absolutely not based on the labor results that the enterprise feels the employees cannot meet. In addition, when applying disciplinary forms of dismissal, it is also necessary to comply with the law.
The enterprise must have certain grounds when terminating the contract
4. Statute of limitations for disciplinary action
The statute of limitations for disciplinary action is also an issue that enterprises need to pay attention to when terminating a contract with an employee. Specifically, it covers the following issues:
- Up to 6 months from the date of the employee's violation.
- Up to 12 months in case of violations directly related to finance, property, disclosure of technology secrets, business secrets of enterprises.
- In some other cases, the time limit may be extended, but it is necessary to comply with the provisions of the law.
5. Disciplinarian dismisses
The handling and signing of dismissal discipline must be done by an authorized person according to the Enterprise Law. In case the competent person is absent, an authorized representative is required to sign the dismissal disciplinary document, and this person must have a written authorization. Only then, the new dismissal discipline is approved.
6. Unemployment and severance allowance
1 in 7 note when terminating labor contract helps businesses avoid unnecessary risks that are unemployment and severance allowances for employees. In case the employee successfully completes all assigned tasks but has to terminate the contract due to some reasons from the enterprise, the enterprise must be responsible for the unemployment and severance allowance. This is to ensure the rights of workers when they are unemployed.
A number of benefits that an employee can receive when fired, such as: the amount of money, the time for calculating the benefit, the salary calculated according to the allowance. These payments are made in accordance with the law.
Job loss allowance is what an employee can receive when the contract is terminated
7. Responsibilities of grassroots trade union
In case the handling of procedures and processes for dismissing employees requires the participation of the grassroots trade union executive committee, this unit needs to participate to support the procedures to be carried out. correct and correct. In fact, very few businesses can do this well, causing troubles, even businesses being sued in court.
The above is 7 note on contract termination that businesses need to master to help the business system run at its best. Hope this information from Acabiz really helpful for you.