Grounds for dismissal under a fixed-term contract: the Court of Justice of the European Union ruled
In a decision of 20 February 2024, the Court of Justice of the European Union ruled that Member States may not provide that the early termination of a fixed-term employment contract does not have to be justified in writing, whereas this obligation exists for open-ended employment agreements.
Context
A Polish company dismissed an employee with a fixed-term contract without informing him of the reasons for the dismissal.
The employee claimed discrimination before the Polish court: he criticized the fact that Polish national law imposed an obligation to give reasons for dismissal for employees with open-ended contracts, but not on employees with fixed-term contracts. The Polish court referred the case to the European Court of Justice.
CJEU decision
According to European Directive 1999/70/EC, fixed-term workers may not be treated less favourably than workers with an open-ended contract, merely because of the duration of their employment, unless there are objective reasons for the difference in treatment.
This principle applies to working conditions, including the conditions under which employment contracts can be terminated.
In the present case, the Court held that:
- the absence of a written notification with the reasons for dismissal deprives the fixed-term employee of important information enabling him to assess whether the dismissal was unjustified and to consider whether he should challenge it;
- this difference in treatment is not justified by objective reasons. The obligation to give reasons for dismissal in the case of fixed-term contracts does not deprive employers of the flexibility offered by this type of contract.
Under Belgian law
Under CBA No. 109, fixed-term workers have the right to ask their employer for the specific reasons for their dismissal under the same conditions as workers with an open-ended contract.
If the employer fails to respond to their request or fails to respond in the prescribed form and within the prescribed time limit, fixed-term workers are also entitled to a lump sum civil penalty equal to two weeks' pay.
The concept of 'manifestly unjustified dismissal' and its lump sum penalty are limited to open-ended contracts.
To remember?
According to CBA No. 109, workers with a fixed-term contract who are prematurely terminated by the employer after the first six months of employment have the same right as workers with an open-ended contract to know the specific reasons for their dismissal. Belgian legislation is therefore already in line with this European case law.
Source : C.J.E.U., 20 February 2024, C-715/20, www.curia.be