In the Czech Republic, the following scenarios can be grounds for an employee to be terminated:

• When an employee and employer have agreed to terminate the contract at a specific date. 
• When an employee submits a notice of termination to the employer.
• When an employer and employee agree for immediate termination of the employment contract.
• When an employer terminates an employment contract during the probationary period.

A written notice must be given by either the employer or the employee when terminating an employment contract. Notice period is generally 2 months before the effective date of dismissal.

Severance pay

The Severance Pay in the Czech Republic varies on the reason for dismissing an employee. When employees are dismissed because they are incapable of performing due to health reasons, they are entitled to a month’s pay as a severance pay. When employees are dismissed due to redundancy and company reorganization, their severance pay ranges from one month’s to three months pay, depending on their years of service.