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Employment can be terminated by the employer or the employee. The first 26 weeks
constitute a probationary period. During this period the employer or the
employee may terminate the employment without notice.
The employee is entitled to compensation if the employer dismisses him after
the probationary period has expired. The amount of compensation depends on the
employee’s length of service.
An employee who has been with the same employer for more than 104 weeks and
is dismissed before reaching the pension period because he is surplus to
requirements is entitled to a payment from the redundancy fund. The employment
of a seasonal worker totalling more than 15 weeks with one employer is treated
as continuous.
The following conditions apply:
- the dismissal of 10 individuals together by an organisation employing
21-99 individuals or of 10% of the employees of an organisation employing
100-299 individuals or of 30 individuals together by an organisation
employing more than 300 individuals is treated as a group dismissal;
- the employer must consult the representatives of the employees in good
time and give them sufficient information about the decision and the amount
of compensation etc.;
- the employer must inform the Ministry of Labour and Social Insurance.
The following information is relevant with regard to pensions:
- the social insurance contribution is 6.3% for employees, 6.3% for the
employer and 4% for the State;
- social insurance contributions are paid by all persons who earn a living
as employees;
- self-employed people also pay social insurance contributions, the level of
which is based on income, profession and the place of the employment;
- all insured persons (salaried persons, self-employed persons and insured
persons who have paid contributions voluntarily) are entitled to the old-age
pension. Persons insured in the social insurance system receive the pension
at 65 years of age or at 63 years of age in accordance with the relevant
conditions;
- widows of insured persons are entitled to the survivor’s pension in
accordance with the relevant conditions;
- an employee is entitled to the invalidity pension if he has not reached
the age of 63 and on the basis of specific conditions such as inability to
work and having been unable to work for a period of at least 156 days. The
pension comprises the basic pension and a supplementary amount.
Allowances for bodily injury sustained at work and disability and death
benefits are also paid on the basis of the Social Insurance Department
legislation.
Text last edited on: 12/2007
Source: European Union
© European Communities, 1995-2008
Reproduction is authorised.
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