Termination of employment contract due to death or arrest of a staff member

One way of terminating the employment relationship is expiration of the contract. In certain cases, the employment contract expires by operation of law without the employer or employee having to perform any actions.

The reasons for the termination of the employment contract may be:

  • death of the employee,
  • death of the employer,
  • the expiry of 3 months of absence from work due to temporary arrest,
  • failure of the employee to report the return to work within 7 days from the termination of the employment relationship with another employer.

Death of an employee

In the event of an employee's death, the employment relationship expires on the day of death, while property rights under the employment relationship shall be transferred in equal proportions to the spouse and other persons fulfilling the conditions for obtaining a survivor's pension (according to the Act on Pensions).

In the absence of such persons, these rights shall be included in the succession. The property rights in the employment relationship are, for example the right to remuneration for work or the right to be paid in cash for unused holidays.

The deceased employee's family is entitled to a survivor's benefit. Its amount depends on the duration of employment of the worker at the employer and is equal to

  • one month's salary if the employee was been employed for less than 10 years,
  • three months' salary if the employee was employed for at least 10 years,
  • six-month salary if the employee was employed for at least 15 years.

The employer is exempt from the obligation to pay the severance pay if he has insured the employee for life. If the compensation paid by the insurance institution is lower than the severance pay, the employer shall be obliged to pay the family an amount equal to the difference between these benefits.

Death of the employer

The death of the employer shall result in the termination of the employment relationship unless the new employer takes over the establishment (e. g. by inheritance). An employee whose employment contract has expired due to the death of the employer shall be entitled to compensation in the amount of his or her remuneration for the period of notice. The obligation to pay compensation shall be borne by the heirs of the employer.

Temporary detention

The employment contract expires after the end of 3 months of the employee's absence from work due to temporary detention, unless the employer terminated the employment contract without notice due to the employee's fault. The period of three months of  temporary detention shall be calculated from the date on which the employee is detained. Before the expiration of this period, the employer cannot terminate the employment contract or terminate it without notice without the fault of the employee.

Note! The employer, despite the expiration of the employment contract due to temporary detention, is obliged to re-employ the employee if the criminal proceedings have been discontinued or if the employee has been acquitted and has reported his return to work within 7 days after the judgment becomes final. The above-mentioned rule does not apply in the case of conditional discontinuance of proceedings, as well as in the case when the criminal proceedings have been discontinued due to statute of limitations or amnesty.

Legal basis

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