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Termination of employment – how to turn it to your advantage?

Everyone probably shudders a little when they hear the word “termination”. Unfortunately, there have been more and more unpleasant reports on social networks and in the media recently about mass layoffs both in the Czech Republic and abroad. And so I decided to make a list of tips on what to do when you found yourself in this unfortunate situation, how to deal with it and how to turn it to your advantage.

You’ve been fired. And now what?

KEEP CALM!

First of all, it’s good to remember that this happens to lots and lots of people every day. It’s not the end of the world, nobody died, take a deep breath and keep your cool. One journey ends and another, perhaps more interesting, begins.

People often take the blame that they did something wrong when they were fired, that they failed somehow. However, in the vast majority of cases, it is a failure on the part of the employer (whether procedural, managerial or a combination of both).

Also, there’s nothing worse than making a scene or some sort of prank as payback when you leave work. This can negatively affect your success in finding a new job – your future employer is likely to check references from your previous company and you may not be hired.

 

Termination notice and its structure

The notice should include the reasons for termination, the date on which the notice takes effect and whether the employee is entitled to severance pay.

The employer should also offer support in finding a new job, for example through a reference or recommendation.

 

Severance pay

The amount of severance pay is between one and three average monthly salaries, depending on how many years the employee has been employed (two or more years of employment is sufficient for the maximum severance pay).

Employees are only entitled to severance pay if the employer gives notice for reasons on the part of the employer. For example, the reason may be a reduction in workforce or redundancy, relocation, work-related injury due to the employer, etc.).

As a general rule, if your employer gives you notice and it does not include severance pay, discuss this with a lawyer, as the Labour Code sets out very specific conditions under which the employer does not have to give severance pay.

 

What about a termination agreement with the employer?

Employers sometimes try to save on severance pay by seeking to negotiate a deal with the employee. It’s good to know that if an employee signs a termination agreement, they lose the right to severance pay if the agreement does not specify severance pay in writing.

At the same time, the agreement deprives you of some amount of unemployment benefits, as the Labour Office pays only 45% of your average monthly net salary. In the case of a standard notice from the employer, the Labour Office usually pays 65% for the first two months and 50% for the next two months, before dropping to 45%.

The agreement with the employer may or may not be beneficial to the employee. It always depends on the terms of the agreement and the situation both parties are faced with. It can sometimes be advantageous to mutually agree on a deal – for example, if the employer can offer the employee an interesting job in another business the employer owns. It’s always polite to at least give the other party a chance to put the deal on the table. However, if the employee is unsure about the agreement or the termination itself, they should consult a lawyer. There’s no need to sign in a hurry.

 

Termination by the employee

There are times when an employee may wish to leave the job on their own, in which case they may give their notice without even having to write down the reason for their decision. This type of notice does not entitle you to severance pay.

The notice period starts from the month following the month in which the notice is delivered to the employer. The notice may be delivered in person or by recorded delivery. If you are unsure whether your employer would sign it at the place of receipt (e.g. your boss is on holiday), it may be a good idea to send it by recorded delivery and keep the certificate of posting in order to confirm the date of receipt.

 

When to register with the Labour Office?

Ideally within 3 working days of the end of employment. Otherwise, there is a risk that the compulsory contributions will start to be paid by the Labour Office on a date other than the day immediately following the termination of the employment and the dismissed person will have to pay the contributions for the period in between.

 

First steps towards a new job

  1. Have a clear idea of what your ideal employer should look like – just list what you liked/disliked about your previous job and think about where your career should go from there.
  2. Update your CV and LinkedIn.com profile – TIP: If you want to read about how to make your CV as polished as possible or even download a template, click here for an easy-to-follow guide.
  3. Create a profile on jobs.cz, profesia.cz or other job portals. You can therefore be contacted based on your profile.
  4. Contact your favourite recruitment or outsourcing agency 👀
  5. Post on LinkedIn that you have quit your job and are looking for a new position. Don’t forget to set the “OpenToWork” option on your profile. This will let your photo show that you are open to job opportunities. I recommend describing what position you are specifically looking for – TIP: And if you’re confused about how to complete your LinkedIn profile, check out this easy-to-follow guide.
  6. Check whether there is a job fair or workshop coming up soon.
  7. Contact your former colleagues/friends and ask if they know of an interesting opportunity.
  8. Focus on your development, as job seeking can take some time – it’s a good idea to use your time off not only to relax but also to upskill.

One final piece of advice – job seeking can be time-consuming and mentally demanding, but it's best to remain optimistic and enthusiastic. This will not only increase your chances of success in interviews, but also improve your overall quality of life.

 

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