An employee who leaves after a takeover is not entitled to severance pay | PRO HR January 2022

2022.01.13

Within 2 months following a transfer of a work establishment or part thereof to another employer, an employee may terminate his/her employment without notice with 7 days' notice.

In such a case, the termination of employment results in the consequences that the labour law regulations associate with the termination of the employment relationship by the employer with notice.

It happens that in such a situation employees – pointing to deterioration of their working conditions as the reason for termination of employment with 7 days' notice – request payment of a severance pay under the Act on Special Rules for Termination of Employment with Employees for Reasons not Attributable to Employees.

However, as a rule, employees are not entitled to such severance pay. The right to severance pay may be considered as an exception, only in the case of a serious change in working conditions to the employee’s disadvantage. And these working conditions should be understood as, for example, reduction of the pay or withdrawal of bonuses, and not as circumstances associated with deterioration of working comfort, such as less modern IT system or worse work tools.

Find more in the PRO HR January 2022.