Global Employee Termination
Employee termination around the world is something that needs a lot of preparation. Different countries have different rules. Therefore, employers should be careful about the things that they do when terminating.
In this article, we will dive into the different rules and regulations of different countries while also providing important information that employers should know.
Reasons for Dismissal
In the United Kingdom, any employee can claim unfair dismissal if it is not under “fair reasons.” Examples are the employee’s conduct, capability, redundancy, etc.
With this in mind, employees with two years of service also have the right to request a written statement of reasons for the dismissal. The employer, on the other hand, must provide this statement within 14 days of the request.
Notice Period
The minimum notice period is between one to 12 weeks. This is entirely dependent on the length of service of the employee.
If the employer fails to do this aspect, it can result in a claim of “wrongful dismissal.”
Statutory Redundancy Payment
In the United Kingdom, severance pay is not required. There are only a few circumstances where an employer must pay after termination, one of which is statutory redundancy.
This payment is provided when the employee has two years of continuous service for the company and is then deemed redundant.
Another circumstance is when an employee is unfairly dismissed and brought about a successful claim.
Reasons for Dismissal
In Italy, there are two main categories for dismissal. It is “just cause” and “justified reason.”
Just cause is the termination without notice. This termination is done due to gross misconduct. Moreover, just cause does not provide the employee any notice period.
On the other hand, the justified reason is termination with notice. Justified reason can be grouped into two reasons. The first reason is subjective. It is when a breach of employment contract is done by the employee.
The second is objective, which is done for reasons of the employer’s reorganization or for physical inability to carry out assigned tasks.
Notice Period
Employers must provide a written dismissal to the employees hence the court can order a reinstatement as well as back pay.
Severance Pay
In Italy, severance pay is required. It is computed by the employee’s annual salary and divided by 13.5.
Reasons for Dismissal
Germany has the German Protection Termination Act. This act offers employees the best protection against unfair dismissals. With this act, termination is only possible in a few circumstances, most of which are:
- Long-term illnesses
- Poor performance
- Addictions
- Employee behavior
- Company restructuring
Notice Period
The employer must provide a written and signed notice of termination while also providing the notice period for the employee.
Moreover, the employer does not need to list the reasons for the termination, unlike in the United Kingdom.
Severance Pay
Employers in Germany have to pay for severance for only a few following cases:
- Written in the employment agreement.
- To settle a termination dispute
- Court dissolves the employment against payment of severance
- Part of the social plan
At-Will Employment
In the United States, they have “at-will” employment. This means that the employer and employee can end the employment at any time, for whatever legal reason.
The only reasons that are not allowed are discrimination, retaliation, and other illegal activities.
Health Care Benefits
Some workers have the right to continue their group health benefits for a limited amount of time.
Moreover, there are other notices that employers should do while terminating their employees such as in the Consolidated Omnibus Budget Reconciliation Act (COBRA).
Unemployment Benefits
Workers who lost their jobs through no fault of their fall and meet the other requirements necessary can be eligible for this benefit.
There are different insurance programs and payments that employees can avail of per state.
Notice Period
There is no statutory notice period in the United States. This is only mandated if it is written in the agreement, and practice, the standard duration is about two weeks.
Reasons for Dismissal
Employees and managers who have completed at least 12 months of continuous employment are entitled to protection against unjust dismissal.
Written Notice
Employers must provide a written notice of intent to terminate the employee at least two weeks. Moreover, employers must pay their employees two weeks’ worth of wages at the regular rate.
Severance Pay
Employees have the right to severance pay if they have at least 12 consecutive months of continuous employment.
The calculation is based on the employee’s two days’ pay at the annual regular rate.
Notice Period
There is no statutory notice period in the United States. This is only mandated if it is written in the agreement, and practice, the standard duration is about two weeks.
Employee termination is something that needs to be thoroughly reviewed. As discussed in the article, many countries have different regulation for the same thing.
With that in mind, there are services that can help remove all of the complexities such as hiring an EOR or PEO. Ultimately, the goal is to have a smooth process and to be respectful to the employees’ rights that will be terminated.
Global People is a leading local employment solutions provider for national and international corporations and can advise and escort you in your next destination.
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