1. Dismissals
An employment contract may be terminated for certain reasons which normally do not give rise to a dispute, such as mutual agreement, death, expiration of the contract term, retirement, and so on.

In addition, the law regulates three principal grounds for dismissal of an employee:

– Collective layoff
– Objective causes
– Disciplinary action The following table shows the causes and main features of the various types of dismissal:

2. Classification of the dismissal
A worker dismissed for any objective cause or disciplinary action may appeal the decision made by the employer before the Labor Courts although a conciliation hearing must first be held between the worker and the employer to attempt to reach an agreement. This conciliation hearing is held before an administrative body of conciliation and arbitration.

The dismissal will be classified in one of the three categories set forth below:

For cases of dismissals declared to be unjustified, the obligation to pay salaries during the proceeding, with the option of paying compensation from the date of dismissal until notification of judgment, or until the worker finds other employment before judgment is passed, or until the date of deposit of the compensation (and salaries during the proceeding) at the Labor Court is also applicable where the following requirements are met:

– The company recognizes the dismissal to be unjustified.

– The worker is offered the legal compensation and salaries during the proceeding.

– The respective amount is deposited at court at the worker’s disposal.

– The dismissed worker is so informed.

– He accepts the compensation or subsequent declaration of unjustified dismissal.

However if the deposit is made at Court within 48 hours after the dismissal, salaries during the proceeding will not be payable.

Salaries during the proceeding will also be payable if the dismissal is declared unjustified and reinstatement is the option taken.

However, if the worker has received unemployment benefit, the employer must deduct the benefit paid by the management entity from the salaries during the proceeding, and refund its amount to the latter.