In accordance with the Labour Code, grounds for termination of the employment contract are:
1. the parties' agreement;
2. expiration of the employment contract;
3. employer's initiative;
4. employee's initiative;
5. transfer of an employee at his request or with his consent to work for another employer or transfer to an elected job;
6. refusal of the employee to be transferred to work in another locality together with the employer or to continue working due to changes of conditions of the employment contract / change of ownership / reorganization of the enterprise;
7. owing to circumstances beyond parties’ control;
8. termination of an employment contract during probation period.
An employment contract (including fixed-term employment contract) may be terminated at any time by agreement of the parties.
The employee may leave job by his own initiative after serving one month written notice. The collective agreement is allowed to establish a shorter term. The employer may also agree to an earlier discharge.
Under the circumstances, excluding or significantly impeding the continuation of the work (health, retirement age, the radioactive contamination of other cases), as well as in cases of violation by the employer of labor legislation, collective agreement, and the employment contract, the employer is obliged to terminate the employment contract in time, that is specified in a statement of the employee.
Fixed-term employment contract can be terminated by following reasons: expiry of its term, completion of work, coming back to job of absent employee, end of the season. Fixed-term employment contract can be terminated prematurely at the request of the employee due to illness, disability, other good reasons that interferes with working of the employee or employer’s violation of labor legislation, conditions of the collective agreement or the employment contract.
Moreover in the situation of temporary job up to 2 month or execution of the duties of the absent employee up to 4 month workers have the right to terminate the employment contract by notifying the employer in writing within three days.
Either party may terminate the employment contract during the probation period notifying the other party in writing within three days.
Employment contract may be terminated by the employer in the following cases:
1) liquidation of company;
3) mismatch of employee to job because of state of health;
4) mismatch of employee to job because of insufficient qualifications;
5) repeated non-performance of job duties in the presence of disciplinary penalty;
6) absence from work without justifiable reasons for more than 3 hours or during the whole workday;
7) absence from work for more than four consecutive months due to temporary disability (unless it relates to pregnancy or occupational injury);
8) drinking alcohol, use of narcotic drugs, psychotropic substances, their analogues, toxic substances during working hours or in the workplace / being at work in state of intoxication;
9) on-the-job embezzlement;
10) violation of safety rules.
In the case of impending dismissal in connection with the liquidation of the organization or staff reduction (redundancy), employees are warned by the employer in written no later than two months before the dismissal. The employer has right (with worker's consent) to replace warning of the forthcoming discharge by compensation in the amount of two months average earnings. In this case, if the initiative in achieving such an agreement comes from the employer after the employee's warning of the impending dismissal, compensation will be paid in proportion to period remaining until the end of the two-month notice period. The order about the disciplinary discharge is delivered to employee (with his/her signature) in five days (not counting time of the disease and vacation).
There are reasons of dismissal owing to circumstances beyond parties’ control in the Labour Code:
a) conscription into the military;
b) where a former employee (earlier dismissed) has been reinstated by court’s decision;
c) violation of the rules of hiring;
d) non-election to the job;
e) administrative or criminal punishment which makes the continuation of work impossible;
f) death of employer (natural person) or an employee;
g) restrictions on particular activities which makes the continuation of work impossible.
Sources: §29, 35, 37, 38, 40-44 and 199 of the Labour Code
Severance pay is paid in amount of two-week average earnings at the dismissal by following reasons (without reference to the length of service):
- refusal of the employee to be transferred to work in another locality together with the employer;
- refusal of the employee to continue working due to changes of conditions of the employment contract / change of ownership / reorganization of the organization;
- mismatch of employee to job because of state of health;
- mismatch of employee to job because of insufficient qualifications;
- conscription into the military;
- where a former employee (earlier dismissed) has been reinstated by court’s decision;
- violation by the employer of labor legislation, collective agreement, employment contract.
For some categories of workers legislation establishes payment of the minimum compensation for the termination of fixed-term employment contract in case of violation by the employer of labor legislation, collective agreement, employment contract.
In the case of liquidation of company or downsizing, there is the severance pay in amount of not less than three average monthly earnings. The same rate of severance pay is established at termination of the employment contract with the head of the organization, his deputies and the chief accountant in connection with the change of the ownership of property. Persons having a second job do not have right to get severance pay.
Severance pay for temporary or seasonal workers is paid in cases:
- suspension of work for more than one week because of industrial reasons or reducing the amount of work - weekly average earnings;
- conscription into the military – two-week average earnings;
- violation by the employer of labor legislation, collective agreement, employment contract – two-week average earnings.
Wives (husbands) of servicemen get severance pay equal to two months average earnings if their dismissal is in connection with the transfer of the wife (husband) to serve in another area.
Other cases of providing severance pay are stipulated by other legislative acts and collective agreements. The amount severance pay may be increased by the collective agreement or the act of employer.
Sources: §48, 295, 302, 340 and 341 of the Labour Code