Will detention of an employee for serving a prison sentence automatically terminate the employment contract?

The Law Firm’s attorneys provided an opinion and assisted one of our Clients in resolving a case concerning the possibility of terminating an employment contract with an employee detained to serve a prison sentence.

The issue proved to be highly significant because if our Client had incorrectly determined the reason for the employee’s detention, it could have faced allegations of improperly terminating the employment contract. The procedure and legal basis for terminating an employment relationship differ depending on whether the employee has been placed in temporary custody or has been incarcerated to serve a prison sentence.

The Law Firm’s attorneys drew the Client’s attention to a crucial fact: the detention of an employee and their incarceration for the purpose of serving a prison sentence do not have the same legal consequences in labor law as the employee’s temporary arrest. In the first case, the employment contract should be terminated due to the employee’s absence from work, but only if the absence lasts longer than one month. In the second case, the employment relationship may expire unless the employer terminates the contract earlier due to the employee’s fault.

According to the Labor Code, the employer has the right to terminate the employment contract without notice under Article 53 § 1(2) of the Labor Code if the employee’s imprisonment results in an absence from work exceeding one month.

The detention and incarceration of an employee in a correctional facility for the purpose of serving a prison sentence constitute a justified reason for their absence from work.

Based on judicial rulings, we informed our Client that, in such a case, there are no grounds for terminating the employment relationship without notice under Article 52 of the Labor Code. This is because the situation does not constitute a serious violation of fundamental employee duties, primarily because such an absence from work is considered justified. Therefore, the only possible way to terminate the employment contract is under Article 53 § 1(2) of the Labor Code.

The Law Firm’s lawyers also provided the Client with practical guidance on terminating the employment contract, including advice on:

• Properly determining the one-month period of the employee’s absence due to their incarceration for serving a prison sentence.
• Correctly identifying the address to which the termination notice should be sent.
• Establishing and verifying the date the employee received the termination notice to accurately record it in the employment certificate as the last day of employment (in such cases, the employment contract is terminated on the date the employee receives the termination notice, not the date it was sent or drafted by the employer).

With the legal support provided by Law

Firm’s lawyers, the entire process of terminating the employment contract was conducted in full compliance with applicable regulations, ensuring that our Client avoided any negative consequences associated with applying an incorrect procedure for terminating the employment relationship.