Dismissal is not the same across Europe
There is no European dismissal rule. Each country has its own labour code and, on top of that, collective agreements add their own sector-specific rules. What in Spain sounds like fair, unfair or null dismissal does not transfer as such to other markets.
Here we review the essentials in the six markets where Filnet operates: Portugal, Germany, France, Italy, Andorra and Dubai.
Portugal: notice by seniority and 12 days per year
The Portuguese Código do Trabalho distinguishes between dismissal for reasons attributable to the employee and dismissal due to extinction of the position or collective dismissal. With just cause there is no severance, but the procedure requires written form and a prior hearing.
In dismissals for objective or collective reasons, compensation is 12 days of base salary per year worked for contracts after November 2011 (earlier ones are governed by 20 days). Notice ranges from 15 to 75 days depending on the employee's seniority.
Germany: the country that protects employees the most
The Kündigungsschutzgesetz protects employees in companies with more than 10 employees. From that point on, dismissal requires social justification: economic (betriebsbedingt), personal or conduct-related reasons.
The notice periods under article 622 of the BGB start at 4 weeks, counted to the 15th or end of the month, and increase with seniority up to 7 months at 20 years. Severance (Abfindung) is not automatic: it is usually agreed at around half a salary per year worked to avoid trial.
France, Italy, Andorra and Dubai at a glance
In France the statutory severance for dismissal is one quarter of monthly salary per year for the first 10 years and one third thereafter. Notice ranges from 1 to 2 months and dismissal requires a real and serious cause.
In Italy the TFR (trattamento di fine rapporto) always accrues, regardless of who ends the relationship, and is roughly equivalent to one salary per year. The notice period is set by each collective agreement (CCNL).
In Andorra the labour code regulates severance for dismissal, and in Dubai federal law 33/2021 sets a notice period of 30 to 90 days and an end-of-service gratuity of 21 days' salary per year for the first 5 years, and 30 days from the sixth year onwards.
What to review before dismissing
A poorly documented dismissal can be declared null and void, forcing you to reinstate the employee or pay much more than expected. With local advice, you minimise that risk and save money in the end.
Key points
- Type of contract and employee's length of service
- Collective agreement applicable to the sector
- Mandatory notice period in the country
- Minimum statutory severance pay
- Documentation justifying the reason
