Monday, September 23, 2024

European Union – Dismissal of Fixed-Term Employees Must Be Reasoned

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K.L. and a company in Poland entered into a fixed-term employment contract from 1 November 2019 to 31 July 2022.  On 15 July 2020, the company notified K.L. about the termination of the employment contract by means of a statement and respected one-month notice period.  Termination took effect on 31 August 2020.  Reasons for termination were not stated.

K.L. claimed that dismissal was unlawful, and he claimed compensation.  K.L. stated, among other things, that even though Polish law does not require that reasons for dismissal be given in fixed-term contracts, such difference of treatment is discriminatory.

According to Polish law, reasons for dismissal are required in permanent employment contracts and not in fixed-term contracts.

European Directive 1999/70 aims to put into effect the framework agreement in fixed-term contracts that stipulates the principle of non-discrimination in respect of employment conditions for fixed-term workers.  Different treatment of fixed-term contracts may be justified on objective grounds.

The Advocate General argued that the non-discrimination clause in EU Directive 1999/70 is not an absolute obligation of equal treatment between permanent workers and fixed-term workers.  The two types of contracts have different socio-economic functions and that non-discrimination in working conditions between permanent and fixed-term workers applies to comparable working conditions.

The CJEU disagreed with this reasoning and found that Polish implementation of Directive 1999/70 that made a distinction concerning the reason for dismissal between permanent workers and fixed-term workers was unjustified and infringing EU law.  The Court mentioned, among other things, that if a fixed-term worker doubts the validity of the reasons for dismissal, for example the worker’s dismissal is discriminatory, the worker is left with no other choice but to bring the employer to court and challenge the dismissal.

By not requiring that reasons for dismissal be stated in fixed-term contracts, Polish legislation deprives fixed-term workers of important information for assessing whether the dismissal is unjustified.  The Court concluded that such difference in treatment of fixed-term workers compared to permanent workers was in principle depriving fixed-term workers of the right to an effective remedy that is guaranteed in the European Charter of fundamental rights.4    

This ruling means that Poland’s Labour Code will have to change to comply with the ruling.

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