Termination of employment without the provision of compensation

This article provides an overview of the law governing the termination of employment without the provision of any compensation.

According to article 5 of The Termination of Employment Law of 1967 (24/1967) ("the Law"), in the following circumstances the employer has the right to terminate an employment without compensating the employee:

(a) the employee fails to perform her duties reasonably satisfactory; or

(b) the employee becomes redundant; or

(c) the termination of employment is caused by force majeure; or

(d) the employment is terminated upon expiration of an employment contract or due to the retirement of the employee; or

(e) the employee demonstrates conduct so as to make herself subject to dismissal without notice.

In relation to point (e), the right of the employer shall be exercised within reasonable time. Furthermore, the following may amount to such conduct:

• conduct which makes it clear that the employee - employer relationship cannot reasonably be expected to continue; or

• serious misconduct or inappropriate behaviour in the performance of her duties; or

• criminal offence in the performance of her duties without the express or implicit consent of the employer; or

• serious or repeated violation or disregard of labour rules or other rules in relation to employment.

According to case law, the employer shall not terminate an employment contract for reasons associated with her behaviour or work before providing the employee with the opportunity to defend herself, unless it is not reasonably expected by the employer to provide such opportunity (St. D. Anderman ″The Law of Unfair Dismissal″, 3rd Edition, Butterworths p. 185-191, J. Bowers, A Practical Approach to Employment Law, 7th Edition, Oxford University Press, p. 348-352). Also, a single act of negligence or misconduct does not justify dismissal without notice unless it is accompanied by serious consequences (KEM (Taxi) Ltd v. Anastasios Tryphonos [1968] 1 CLR 52, Avghi Constantinidou v. F. W. Woolworth & Co (Cyprus) Ltd [ 1980] 1 CLR 302). Similarly, no conduct or behavior on the part of the employee which does not involve the element of serious misconduct, cannot be said to justify the termination of the employee's employment without notice (Anastasia Kasapi v. Technoplastics Ltd [1992] 1 A.A.D .919).

This article has been written by Chara Palekythriti, Lawyer - Legal Consultant ©

Disclaimer: This article is for informative purposes only and does not constitute legal advice, opinion or otherwise.