When an employer immediately terminates an employee’s employment contract with the payment of notice pay, it’s essential to understand the implications regarding salary payments. There’s a difference between termination with notice and termination with notice pay.
In the case of termination with notice, the notice period begins the first Monday following the week of notice, confirmed by registered letter no later than the previous Wednesday. The employee is entitled to their salary until the end of this period, proportionate to the days worked.
Conversely, in the case of termination with notice pay, the termination takes immediate effect, even if later confirmed by registered mail. The employee is entitled to their regular compensation until the end of their last working day, proportionate to the hours worked.
It’s important to note that the rule of guaranteed daily wage doesn’t apply in cases of termination. The Court of Cassation has clarified that this rule only applies in cases of work contract suspension, not in cases of termination. Therefore, if an employee is terminated after one hour of work, the employer is generally obligated to pay only for that hour of work.
In summary, in the case of termination with notice pay, the end of the employment contract is immediate, and compensation is provided proportionate to the services rendered on the last working day.
Our mission in the field of payroll management is to support you in recruiting new employees while ensuring compliance with their rights and obligations. We also strive to optimize the calculation of your compensation based on your personal needs as executives or shareholders.
