Many companies face similar employment issues, even across different industries. In discussions with HR Managers, General Counsel and the Board of Directors, the following are the eight questions that come up most frequently:
1. “Can employees be prohibited from running a side business?”
This is permissible, provided it is stipulated in the employment contract or company regulations, is proportionate, and is limited to businesses that are in direct competition or that utilise the company’s resources. Prohibitions that are too broad are difficult to enforce.
2. “What should be done if an employee suddenly fails to turn up for work and cannot be contacted?”
Do not proceed with dismissal straight away. Send a summons to their last known address (at least three times on different days) and document all attempts. If there is no response after five working days, dismissal on grounds of unauthorised absence may be processed in accordance with the procedure.
3. “Can an employee on sick leave be made redundant?”
Generally speaking, this is highly risky and is often considered unlawful. An exception may apply if the illness lasts for more than 12 consecutive months, in which case the employee is entitled to compensation in accordance with the applicable regulations.
4. “Can a company deduct from an employee’s salary because of losses they have caused?”
This cannot be done unilaterally. Written consent from the employee is required, and the amount must not exceed 50 per cent of their monthly salary. Without such consent, this could constitute a breach of the right to remuneration.
5. “Can the probationary period be extended?”
It can be extended with the agreement of both parties, set out in an addendum. The extension must be agreed before the probationary period ends.
6. “An employee who has resigned refuses to pay the one-month’s notice in lieu. What can be done?”
Claims for reimbursement of notification costs may be pursued through civil proceedings if there is an explicit clause to that effect in the employment contract. In practice, many companies choose to withhold reference letters or the processing of employment certificates as a means of leverage; however, this must be done with care so as not to be regarded as a deprivation of the employee’s rights.
7. “Is it permissible to schedule mandatory meetings after the end of official working hours?”
If instructed by the company, this is, in principle, considered overtime for which compensation is required. The risks increase if this practice is carried out repeatedly without compensation, particularly for non-managerial staff.
8. “What is the difference between redundancy for efficiency reasons and redundancy due to company closure?”
Both entitle employees to severance pay, but the formula and scope of compensation differ. Redundancy for efficiency reasons: 1x PMTK. Redundancy due to company closure caused by force majeure: 1x PMTK. Redundancy due to company closure resulting from losses: the formula varies depending on the duration of the losses. The calculation details differ significantly; always seek advice before making an announcement.