Dismissal of an Employee in the Retirement Age

From 1.1.2022, the provisions of § 63 part. 1 of the Labor Code are supplemented by letter f). By this change, the employer can now provide notice to an employee who has reached the age of 65 as well as the age for entitlement to a retirement pension.

An employee with whom the employer terminated employment relation due to reaching the age of 65 is entitled for severance payment depending on the number of years worked for the employer.

Compensation payment is paid in a different amount depending on whether the termination of employment is „by notice“ or „by agreement“.

• In case of termination „by notice“ by the employer due to § 63 part. 1 letter f) of the Labor Code, the employee is entitled to compensation payment at least in the amount of:

a) the average monthly earnings of the employee, if his employment lasted 2-5 years
b) twice the average monthly earnings of the employee, if his employment lasted 5-10 years
c) three times of the average monthly earnings of the employee, if his employment relation lasted 10-20 years
d) four times of the average monthly earnings of the employee if his employment lasted at least 20 years.

• In case of concluding the termination „by agreement“, the employee is entitled to compensation payment of at least the amount:

a) the average monthly earnings of the employee if his employment lasted less than 2 years
b) twice the average monthly earnings of the employee if his employment lasted 2-5 years
c) three times the average monthly earnings of the employee, if his employment lasted 5-10 years
d) four times the average monthly earnings of the employee, if his employment lasted 10-20 years
e) five times the average monthly earnings of the employee, if his employment relation more than 20 years.