Termination of the employment contract – News

Overlapping Worker Compensation Claims

ATTENTION! automatic translation from Polish

If the employer terminates the contract illegally, the employee is entitled to compensation. Art. 60 of the Labor Code provides for compensation for unlawful termination of an employment contract during the notice period. This provision states that if the employer terminated the employment contract during the notice period in breach of the provisions on the termination of employment contracts without notice, the employee is entitled to compensation.

Whereas Art. 45 § 1 stipulates that if it is established that the termination of an employment contract concluded for an indefinite period is unjustified or violates the provisions on the termination of employment contracts, the labor court adjudicates, inter alia, on compensation.

In the case considered by the Supreme Court, the employer made two unilateral legal actions aimed at terminating the employment contract. First, he terminated the legal bond, and during the period of notice he dissolved it. Both actions were illegal. The employee sought compensation due to the termination of the employment contract and compensation for the termination of the employment contract without notice.

The District Court asked the Supreme Court to resolve the legal issue of whether an employee with whom the employer terminated the employment contract without notice in violation of the provisions on termination of contracts in this manner during the period of notice of the contract made earlier, also in violation of the provisions on termination of employment contracts under the procedure notice, may claim compensation for both actions of the employer.

The Supreme Court in a resolution of April 4, 2019 (file No. III PZP 2/19) stated that in the event of multiple compensation claims, the employee is entitled to not one compensation, but as many claims as defective activities were performed by the employer. This does not mean, however, that both damages are to be awarded in full.

The Supreme Court pointed out that in certain situations an employee will be entitled to only one compensation (this happens when the termination of the contract under Art.52 § 1 of the Labor Code took place on the last day of the notice) or two full compensation (if the immediate termination of the employment contract will make it impossible to fully comply with the notice period.