Changes to the notice period: what has flexinovela brought to the Labour Code?

Why the rules on terminations have changed

For many years, the rules for termination of employment were set fairly rigidly. In practice, this meant that even if an employee or employer delivered notice at the beginning of the month, for example, the notice period did not start until the following month. The actual termination of the employment relationship was thus often unnecessarily prolonged by several weeks. The Ministry of Labour and Social Affairs, in promoting flexinovela, explicitly stated that the aim was greater flexibility and fewer unnecessary delays, not a weakening of basic employee protection.

How the notice period runs today

The new wording of Section 51 of the Labour Code states thatthe notice period begins on the day on which the notice is delivered to the other party and ends on the day that coincides with that day. If there is no such day in the last month, the end of the notice period shall fall on the last day of the month. The basic period of notice shall always be at least two months.

Practical example: if the employer gives notice to the employee on 5 May, the two-month notice period ends on 5 July. Previously, in a similar situation, it would only run from 1 June and the employment relationship would not end until 31 July. The difference is therefore really noticeable.

At the same time, however, it is not the case that all older employment contracts must automatically “fall under the table” after 1 June 2025. The MLSA expressly points out that if the parties have previously agreed in writing on a different notice period, for example from the first day of the following month, such an agreement may still prevail. However, there is not complete unanimity among experts on this issue, so it is always wise to check the specific text of older contracts.

When is the notice period only one month

The one-month notice period now applies to notice given by the employer for reasons under section 52(f) to (h) of the Labour Code. This refers to situations where the employee does not meet the prerequisites laid down by law for the performance of the agreed work or, through no fault of the employer, does not meet the requirements for the proper performance of that work, or where there are grounds for immediate termination of the employment relationship or serious or persistent minor breaches of work obligations.

This is practically very important. If the employer gives notice, for example, for unsatisfactory performance or for breaches of work obligations, the employment relationship may end more quickly than before. In contrast, for normal organisational reasons or most health reasons, a minimum of two months’ notice remains the standard.

Health reasons: what has changed the most

There has been a big change in the medical reasons for termination. The previous wording of the Labour Code distinguished between work-related accidents and occupational diseases on the one hand and general long-term incapacity for work on the other. As of 1 June 2025, Section 52(d) is worded more generally: the employer may give notice if the employee has, according to the relevant medical opinion, lost the ability to perform his/her previous work on a long-term basis due to his/her health condition. Separately, point (e) regulates the attainment of the maximum permissible exposure at the workplace.

At the same time, however, there is a special rule for cases where the long-term incapacity is related to an occupational accident, occupational disease or the risk of such a disease. In such a case, the employee is no longer entitled to severance pay as before, but to a lump-sum compensation pursuant to Section 271ca of the Labour Code in an amount of at least 12 times the average monthly earnings. This compensation replaced the existing severance pay as of 1 June 2025. On the other hand, in the event of termination of employment on the grounds referred to in Section 52(e), a severance payment of at least 12 times the average earnings is payable.

It is also important for practice that this lump-sum compensation is paid upon termination of employment at the next pay date, unless the employer and the employee agree otherwise.

Protection period and other exceptions

If, for example, the employee is on sick leave, pregnant, on maternity leave or on protected parental leave, the notice period is either prohibited or interrupted according to the existing rules. Thus, the amendment did not introduce a “free hand” for dismissals during sickness or parental leave. It has merely changed the general way in which the notice period is calculated where protective barriers do not operate.

The situation for organisational changes is also important. The MoLSA explicitly points out that in the case of dismissal for redundancy, the timing between the delivery of the notice and the effectiveness of the organisational change must now be much more carefully monitored. If an employer gives notice too soon, it may lose the causal link between the organisational change and the termination of the employment relationship, and the notice may be invalid.

What this means in practice for employees and employers

For the employee, change is a double-edged sword.On the one hand, they may leave their jobs more quickly if they decide to resign. On the other hand, they have less “reserve time” than before when they give notice from their employer because they no longer have to wait for the next month to start. So, in real terms, the period to find a new job may be shorter.

For employers, the amendment mainly means more flexibility and less artificial waiting. However, it also requires greater precision in the scheduling of termination notices, particularly for organisational changes or employment contracts that contain older notice periods.

A typical example from practice: a company is abolishing a job on 1 May 2026. If the employer mistimes the delivery of the notice, the employment relationship may end too soon and the notice will be invalid. In addition, in some calendar combinations, it is not even possible to get the employment relationship to end on the exact last day before the organisational change takes effect, and the employer must then resolve the situation, for example, by agreement, a different effective date for the change or a barrier to work on its side.

Summary

As from 1 June 2025, the notice period will, in principle, start from the date of delivery of the notice to the other party. The basic length remains at least two months, but for notice given by the employer for reasons under section 52(f) to (h) it is now at least one month. There have also been significant changes in the area of health reasons: in the event of an occupational accident, occupational disease or threat of such a disease, the termination of employment no longer provides for severance pay but for a lump-sum payment of 12 times average earnings. The protection periods have been maintained and, in the case of organisational changes, the correct timing of termination is now even more important. Overall, the amendment has accelerated the termination of employment but at the same time increased the importance of accurate contractual and personnel documentation.