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Severance payment for an employee who terminates the contract

In a resolution dated July 2, 2015, the Supreme Court ruled that an employee who terminates the contract pursuant to article 55 § 1(1) of the Labour Code due to the severe breach of the employer’s fundamental duties is entitled to the severance payment referred to in article 8 in conjunction with article 10 § 1 of the Act of 13 March 2003 on special rules of termination of employment for reasons not attributable to employees, if these reasons constitute the sole reason for dismissal (ref. III PZP 4/15).

Consequently, the employee who terminated the employment contract because of the severe breach of the employer’s basic responsibilities towards the employees, may claim from the employer not only a compensation referred to in article 55 § 1(1) of the Labour Code, but also a severance payment for termination of the employment for reasons not attributable to employees.

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