When an employment contract is terminated upon your initiative, you must pay the employee transition compensation. The transition compensation depends on the length of service and the employee’s salary. In some cases, however, you do not need to pay transition compensation at all or a reduced compensation. In other cases, you must pay higher transition compensation.
If the dismissal is attributable to serious culpable acts or omissions on your side, the court can grant the employee a reasonable compensation on top of the transition compensation. The amount of the reasonable compensation will be determined by the court.