Immediate termination of employment

Legal Framework for Immediate Termination of Employment

Immediate termination of employment is an extraordinary instrument of Czech labor law. It is used only in situations where the employer cannot be reasonably expected to continue employing the employee, and the employment relationship therefore ends without a notice period.

This is a unilateral legal act by the employer. The employee's consent is not required, and the employment relationship ends upon delivery of the written document. The effects cannot be unilaterally revoked; they can only be nullified by agreement of the parties or by a final court decision.

An employer may use immediate termination only for reasons expressly stated in the Czech Labor Code. Internal regulations, employment contracts, or managerial decisions cannot expand these reasons.

It is also necessary to distinguish between immediate termination by the employer and by the employee. An employee may immediately terminate their employment, for example, if the employer has not paid their wages within 15 days of the due date, or if, according to a medical certificate, they can no longer perform their work.

During protected periods, especially during pregnancy, maternity, paternity, and parental leave, the employer is not permitted to use immediate termination. In these cases, other legal instruments must be considered depending on the specific situation.

When an Employer Can Immediately Terminate an Employment Relationship

The first statutory reason is the employee's final conviction for an intentional criminal offense to an unconditional prison sentence. Generally, the sentence must exceed one year. If the criminal offense was committed while performing work duties or in direct connection with them, an unconditional sentence of at least six months is sufficient.

A final and binding court judgment is always a prerequisite. The employer should therefore rely on a judgment with a finality clause and verify that all legal requirements are met. This reason is relatively straightforward in practice because it is based on a court decision. Nevertheless, it is necessary to observe protected periods, deadlines, written form, proper delivery, and precise identification of the act and the court's decision.

Particularly Gross Breach of Employee's Duties

A more common reason for immediate termination is a particularly gross breach of an employee's duties. The Czech Labor Code does not define this term in detail, so its content is shaped by case law.

The breach of duties must be so intense that the employer cannot be reasonably expected to continue the employment relationship, even for the duration of the notice period. Courts distinguish between less serious, serious, and particularly gross breaches of duties. Only the last category allows for immediate termination.

When assessing the intensity, courts primarily consider the employee's person, their job position, their past work attitude, the degree of fault, the consequences caused, the amount of damage, and the impact on the employer's operations.

Typically, this can include unexcused absence, an attack on the employer's property, physical assault, a serious breach of OHS, or working under the influence of alcohol. However, even in these cases, immediate termination is not automatic. It always depends on the specific circumstances and evidence.

Selected Typical Situations: Absence, Alcohol, Attack on Property

For unexcused absences, a threshold of five working days is often used in practice. However, this is not an absolute rule. Courts always evaluate the reasons for the absence, communication with the employee, the impact on operations, and any potential damage.

Regarding alcohol in the workplace, there is a ban on consuming alcohol and a ban on entering the workplace under its influence. However, there is no universal alcohol level that would automatically justify immediate termination. For high-risk professions, the assessment will be stricter than for administrative positions.

An attack on the employer's property is generally viewed very strictly by the courts, as it undermines the fundamental trust between the parties. This can include theft, embezzlement, unauthorized handling of property, or misuse of IT resources. However, proving the act and its connection to the performance of work is crucial.

Protected Periods and Groups of Employees for Whom Immediate Termination Cannot Be Used

An employer may not immediately terminate the employment of a pregnant employee or an employee on maternity, paternity, or parental leave.

This prohibition applies regardless of the severity of the breach of duties. Therefore, the employer cannot use immediate termination even in a case where the conduct would be justifiable as a particularly gross breach for another employee. Situations where the employer is unaware of the pregnancy at the time of delivery are particularly risky. If the employee was already pregnant at the time of the immediate termination, there is a significant risk of invalidity.

Formal Requirements and Deadlines: Where Employers Most Often Get Burned

Immediate termination must always be in writing. An oral statement, SMS, or a regular email that does not meet the legal conditions is not sufficient. If the written form is missing, the employment relationship does not legally end. Delivery is equally important. The effects take place only when the document enters the employee's sphere of control. The employer must be able to prove delivery in a potential dispute.

Delivery can be made in person, by registered mail to the employee's own hands, via a data box, or electronically if legal conditions are met. Electronic delivery requires the employee's prior written consent and compliance with other requirements.

Factual Definition of the Reason and Prohibition of Its Change

The employer must precisely describe what happened in the immediate termination notice. It is not enough to state that the employee "committed a particularly gross breach of work duties" or to refer to a statutory provision. The description must be specific: when the conduct occurred, what the employee did, what duty they breached, and why the employer believes it constitutes a particularly gross breach.

The stated reason cannot be changed later. In court proceedings, the employer can only rely on the facts stated in the document delivered to the employee. If the reason is described vaguely, the court often does not even get to assess the intensity of the conduct itself.

Deadlines for Immediate Termination After the 'Flexi-Amendment'

The employer must issue the immediate termination within 3 months from the day they learned of the reason. At the same time, an objective deadline of 15 months from the day the reason arose applies. If these deadlines expire, the employer's right to immediately terminate the employment relationship ceases. The court takes this into account even without an objection from the employee.

The subjective deadline begins from the moment the authorized person at the employer learns of the decisive facts to an extent that allows them to assess whether the conditions for immediate termination are met. It is therefore not always safe to wait, for example, for the outcome of a police investigation.

Link to Internal Regulations, Contracts, and Evidentiary Material

A successful defense of an immediate termination often depends on whether the employer has well-drafted employment contracts, job descriptions, internal policies, and records of duty breaches.

Internal rules must comply with the law, and the employee must be demonstrably familiar with them. If the employer claims a breach of an internal policy, they must be able to prove that the employee knew the rules and had the opportunity to follow them.

High-quality documentation is also important: attendance records, minutes of meetings, findings from internal investigations, communications, witness statements, and camera or IT records, if obtained lawfully.

Risks of Invalid Immediate Termination for the Employer

If the employer acts contrary to the law, the employee can file a lawsuit for the invalidity of the employment termination. They must do so within two months from the day the employment was supposed to end.

If the employee announces that they insist on continued employment, the employment relationship continues, and the employer must provide them with wage compensation. Furthermore, during the dispute, the employee is entitled to vacation leave, as this is considered an obstacle to work on the part of the employer.

If the employee does not insist on continued employment, the employment relationship is considered terminated by agreement, and the employee is entitled to wage compensation for a period corresponding to the notice period. The financial consequences are lower in this case, but the decision rests with the employee.

The Court's Moderation Right and Its Limits

The Czech Labor Code allows the court to reduce wage compensation if the period for which the employee is entitled to it exceeds 6 months. The court takes into account, in particular, whether the employee was employed elsewhere in the meantime, what earnings they achieved, and for what reasons they did not engage in work.

However, the moderation right is not a certainty. The employer should therefore not rely on the court significantly reducing the compensation. It is safer to assess the financial risks before delivering the immediate termination notice.

Return of Severance Pay and Other Financial Impacts

Immediate termination itself does not create an entitlement to severance pay. However, if an employee previously received severance pay and the termination is subsequently deemed invalid, the question of its return as unjust enrichment may arise.

Other risks include court costs, legal representation costs, management time, potential penalties from the labor inspectorate, and reputational damage, especially in cases involving key employees or sensitive issues.

Procedural Risks and Court Costs

Only a court can rule on the invalidity of an employment termination. A dispute can last for more than a year and represents not only a financial burden for the employer but also operational and reputational complications.

The employer must be prepared to prove the act, the intensity of the breach, compliance with deadlines, proper delivery, and the absence of a protected period. If any of these elements are not proven, there is a risk of losing the dispute.

How to Proceed in Practice: Dispute Prevention and Secure Process Setup

The decision to immediately terminate employment should not be an impulsive reaction to a conflict or an employee's failure. Management should first evaluate which duty the employee breached, whether it is truly a particularly gross breach, and whether there is evidence usable in court proceedings.

Internal investigation must be systematic. It is advisable to secure witness statements, analyze documents, verify attendance, process technical evidence, and maintain the procedural integrity of the entire process.

At the same time, it is advisable to compare multiple scenarios: immediate termination, notice of termination, agreement, or internal corrective measures. Each solution has a different impact on the speed of termination, costs, operational continuity, and the company's reputation.

Working with Evidence and Forensic Support

The burden of proof in a potential dispute lies with the employer. It is therefore not enough to merely be convinced that the employee has erred. The employer must be able to prove their claims.

Evidence may include work reports, attendance records, email communication, minutes of meetings, camera footage, IT logs, test results, or witness testimonies. For alcohol, it is important to use a calibrated device or a medical examination, otherwise the evidence may be challenged.

For IT incidents, it is essential to securely preserve data and respect data protection rules. Illegally obtained evidence can cause further complications in court proceedings.

Communication with the Employee and the Choice Between Notice of Termination and Immediate Termination

The way of communicating with the employee can significantly influence further developments. Even in a tense situation, it is advisable to proceed calmly, factually, and professionally. It is appropriate to describe the alleged misconduct to the employee and give them space to respond.

The choice between immediate termination and a notice of termination is strategic. Following the 'flexi-amendment', the notice period for termination due to a breach of duties is shortened to one month and begins on the day of delivery. This increases the practical usability of a notice of termination as a safer alternative.

If the intensity of the breach is not unequivocally the highest, a notice of termination or an agreement may be a more reasonable solution than an immediate termination with a high risk of a court dispute.

Specifics for Managerial Positions and During the Probationary Period

For managerial positions, a breach of duties is usually assessed more strictly. Senior employees have greater responsibility, access to sensitive information, and a greater influence on the company's operations. Misuse of information, conflict of interest, or a breach of loyalty can therefore reach a high intensity.

The situation is different during the probationary period. The employment relationship can be terminated in writing for any reason or without stating a reason. However, the written notice must be delivered no later than the last day of the probationary period.

Following the 'flexi-amendment', a longer probationary period can be agreed upon: up to 4 months for regular employees and up to 8 months for senior employees. Here too, it is advisable to continuously evaluate the employee's performance and not to postpone a potential termination until the last minute.

Overview of Selected Practical Cases and Their Assessment by Courts

Unexcused absence is one of the most common reasons for which employers consider immediate termination. The five-day rule is only a guideline. Courts examine the specific circumstances, the reason for the absence, communication with the employee, and the impact of the absence on operations.

There are cases where a longer absence did not lead to the recognition of immediate termination because the court took into account the employee's social situation or communication ambiguities. Conversely, a shorter absence can be serious if it causes significant damage or operational complications. The key is therefore to document not only the absence itself but also its impact on the employer.

Alcohol and Other Addictive Substances in the Workplace in Case Law

The ban on alcohol in the workplace is a fundamental OHS rule. Nevertheless, courts do not evaluate every positive test the same way. In high-risk professions, even a low level of alcohol can justify a strict approach, while in administrative work, a milder measure may be more appropriate.

The employer should have a clear internal policy on testing, designate authorized persons, the measurement procedure, the use of a calibrated device, and the procedure for refusing a test.

Misuse of Employer's Property and IT Resources

An attack on the employer's property undermines the fundamental trust between the parties. This can include not only the theft of items but also the misuse of IT resources, downloading sensitive data, unauthorized handling of documents, or using company systems contrary to the rules.

The employer must prove that the conduct actually occurred and that the employee was familiar with the rules for using the property. For IT evidence, it is also necessary to ensure the lawful preservation of data and data protection.

Wage Dispute and Concurrence with Immediate Termination by the Employee

A specific situation is the concurrence of actions by both parties. An employee can immediately terminate the employment relationship if the employer has not paid their wages within 15 days of the due date. The employment relationship then ends upon delivery of the immediate termination by the employee, and the employee becomes entitled to wage compensation for a period corresponding to the notice period. 

Before any crisis personnel step, it is therefore advisable to quickly verify the status of wage obligations and prevent a procedurally disadvantageous concurrence.

The Role of Our Lawyers from ARROWS Law Firm in Managing Risks Associated with Immediate Termination

Immediate termination of employment should not be addressed only at the moment of crisis. The foundation is the preventive setup of employment contracts, internal policies, job descriptions, attendance records, and rules for working with the employer's property.

Also important is the training of managers and HR professionals who are the first to encounter breaches of duties. They must know how to secure evidence, how to communicate with the employee, and when to hand the situation over to lawyers.

ARROWS helps clients set up HR processes, prepare internal documentation, train management, and evaluate specific cases before the decisive document is delivered.

Consultancy in Specific Cases and Representation in Disputes

In crisis situations, ARROWS will evaluate the factual situation, assess the available evidence, recommend a suitable course of action, and prepare the necessary documentation. This may involve immediate termination, a notice of termination, an agreement, or a combination of other measures.

In the event of court proceedings, ARROWS represents employers before the courts, prepares a procedural strategy, works with evidence, and, in justified cases, uses arguments for the moderation of wage compensation.

Final Summary

Immediate termination of employment is an extraordinary tool that can only be used in the case of an employee's final conviction for an intentional criminal offense or for a particularly gross breach of duties.

It cannot be used for general dissatisfaction with work performance, repeated minor infractions, or situations where the employer lacks sufficient evidence. In these cases, a notice of termination, an agreement, or other HR measures are more appropriate.

The greatest risks stem from errors in form, delivery, factual description, protected periods, and deadlines. Following the 'flexi-amendment', it is necessary to monitor especially the subjective 3-month deadline and the objective 15-month deadline. An invalid immediate termination can mean an obligation for the employer to pay wage compensation for a long period, including entitlement to vacation, court costs, and reputational damage.

Each case should therefore be legally and evidentially analyzed in advance. ARROWS helps employers set up preventive processes, prepare secure documentation, negotiate agreements, and represent clients in potential court disputes.