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The termination procedures depend on the type of employment contract, the position held by the employee, and the reason for termination.

Fixed-Term Contract

An FDC cannot be terminated before its stipulated expiry date unless the employee and employer sign a mutual separation agreement before a labor inspector. If one of the parties disagrees, the employment contract cannot be terminated unless for reasons of gross misconduct.

Unfixed duration Contract

For indefinite employment, written notice must be given. A UDC is terminated with cause when it is terminated on any of the following grounds:

• A reason related to the employee’s aptitude or behavior, depending on the requirements of the enterprise
• A force majeure situation
• Serious misconduct from the employee.

The employer must also notify the Ministry of Labor.

Upon termination, the employee is entitled to request a certificate of employment stating the dates of employment and information about the position held. If the employer refuses to provide this, the employer must pay the employee for damages.

The usual notice period during the probationary period is between 7 to 15 days. In the case of permanent employees, this period is in the range of seven to ninety days.

If the employer fails to give written notice or does not follow the notice period, compensation must be given to the employee for the amount that the employee would have earned during the notice period.

For indefinite period employment, the severance pay is as follows:

For fixed-term contract employment, employees shall receive at least 5% of wages obtained during the contract period.