Unlawful Dismissal & Compensation

When is a dismissal unlawful?

A dismissal may be declared unlawful on numerous grounds. Here are the most common reasons courts reverse dismissals:

Absence of valid grounds

• Non-existent redundancy — the position was renamed but not actually eliminated
• Unproven volume reduction — the employer cannot present evidence of an actual decline
• Non-existent disciplinary violation — the alleged violation was not actually committed
• Wrong legal basis — a basis different from the actual one was cited

Procedural violations

• Absence of hearing in disciplinary dismissal (Art. 193 LC) — automatic reversal
• Failure to carry out selection under Art. 329 LC — for redundancy or volume reduction
• Merely formal selection — without genuine assessment on both criteria (qualification and performance)
• Absence of a reasoned order — the order does not describe the specific violation or grounds

Violated protection

• Dismissal of a protected employee without Labour Inspectorate authorisation (Art. 333 LC)
• Pregnant employee, mother with child under 3, reassigned person, person suffering from certain diseases
• Trade union member — without consent of the trade union body

Expired deadlines

• Disciplinary sanction imposed after 2 months from discovery or 1 year from commission
• Service of the order after expiry of the notice period

Claims for unlawful dismissal (Art. 344 LC)

In case of unlawful dismissal, the employee may bring the following claims before the court, individually or cumulatively:

1. Declaration of the dismissal as unlawful and its reversal (Art. 344, para. 1, item 1) — the main claim, without which the others cannot be upheld
2. Reinstatement to the previous position (Art. 344, para. 1, item 2) — to the same position, with the same employer
3. Compensation for the period of unemployment (Art. 344, para. 1, item 3) — up to 6 gross monthly salaries
4. Correction of the dismissal grounds in the employment record book (Art. 344, para. 1, item 4) — when an incorrect basis was recorded

Court procedure

Deadline for filing a claim

The claim must be filed within a 2-month period from the date of service of the dismissal order (Art. 358, para. 1, item 2 LC). The deadline is preclusive — missing it extinguishes the right to bring a claim irrevocably.

Competent court

Labour disputes are heard by the district court at the employer's registered office or the employee's place of residence (at the plaintiff's choice). The proceedings are two-instance — the district court's decision may be appealed before the regional court.

Expedited proceedings

Labour cases are heard within an expedited 3-month period from receipt of the statement of claim (Art. 310 CPC). In practice, first-instance proceedings take 4-8 months, and with appeal — up to 12-18 months.

Burden of proof

In labour cases, the burden of proof is on the employer. The employer must prove:

• The existence of valid grounds for dismissal
• Compliance with all procedural requirements
• Carrying out the selection (for redundancy)
• Obtaining Labour Inspectorate authorisation (for protected employees)
• Compliance with deadlines (for disciplinary dismissal)

Court fees

The employee does not pay court fees when bringing a labour case (Art. 359 LC). Fees are paid by the employer if they lose the case. The employee owes only attorney's fees (if using a lawyer), which upon winning the case are awarded against the employer.

Full compensation table

The Labour Code provides for various types of compensation upon termination of the employment relationship. Here is the full overview:

Reinstatement

Upon an upheld reinstatement claim, the employee has the right to report to work within a 2-week period from receiving the court's notification of the final decision (Art. 345, para. 1 LC).

Practical aspects

• Position — the employee is reinstated to the same position they held before the dismissal
• Length of service — the time from dismissal to reinstatement is recognised as employment and social security service
• Failure to report on time — if the employee does not report within the 2-week period without valid reasons, the employment relationship is terminated
• Position is occupied — the employer must vacate the position for the reinstated employee; the substitute's employment contract is terminated under Art. 325, para. 1, item 5 LC
• Employer's refusal — if the employer refuses to admit the reinstated employee, they owe compensation under Art. 225, para. 3 LC

Frequently asked questions