Individual Dismissal 2025: The Complete Guide for Employers and Employees

Individual dismissal through redundancy is one of the most common legal forms of termination of employment. In 2025, the Labor Code clearly sets out the steps and conditions to be followed by employers in order to avoid litigation, as well as the rights of employees. In this step-by-step guide, we explain what an individual dismissal entails: definition, required documentation, notification, notice, notice of termination, termination decision and the right to appeal.

 

1. What is Individual Dismissal?

Individual dismissal is a termination of the individual employment contract at the employer’s initiative, for reasons outside the employee’s personal sphere. It may arise as a result of reorganization, restructuring or downsizing.

✔️ Real and serious causes:

• Fall in company revenues;
• Reduced market demand;
• Internal reorganization or streamlining;

2. Documentation for Dismissal

📌 Main steps for due process:

1. Explanatory memorandum – justifies the reorganization;
2. Reorganization plan – approved by internal decision or AGM;
3. Updated organizational chart – reflects the new structure;

On the basis of these documents, the AGM’s decision to abolish the post is issued.

3. Notifying the Employee

✅ Must be submitted in writing and include:

• Minimum 20 working days’ notice;
• List of posts available in the company (if any);
• Employee rights during the notice period;

💡 The employee is paid in full and must fulfill their duties until the end of their notice.

Please note: the period of notice starts to run from the day following the written notification. According to the Labor Code, notice must be given at least 20 working days before the actual termination of the individual employment contract.

If there are provisions in the CIM for a period of notice longer than these 20 days, notice must be given in accordance with the CIM. It is important that the notice period is strictly observed, as termination of the contract without notice may be considered unlawful. Also, notice can only be suspended in situations expressly provided for by law, such as sick leave.

4. Termination Decision

According to Art. 65 and Art. 76 of the Labor Code, the decision must include:

• Reasons for dismissal;
• Duration of notice;
• List of vacancies (if any);
• Selection criteria – for collective redundancies only;

5. Challenging the Dismissal Decision

An employee who considers the decision unfair or unlawful has the right to challenge it. He or she has 45 calendar days from the date of the decision to appeal to the court or the ITM.

6. Compensations Granted

Depending on the collective or individual contract, employees may receive:

• Compensation;
• Support for professional reintegration;
• Priority for re-employment in case of vacancy;

7. Conclusion

Individual dismissal should be treated seriously by both employers and employees. Compliance with the legal procedure, clear communication and full documentation are essential to avoid disputes. To be on the safe side, the support of a specialist in employment law is recommended.

Need help drafting dismissal documents or challenging an unfair dismissal decision? Contact our team of consultants and get full step-by-step support!

For other HR topics of interest see also this article.