An employee is entitled to severance pay if the employer terminates their employment contract for reasons unrelated to the employee (e.g., job liquidation). However, doubts about whether an employee is entitled to severance pay may arise if the employment relationship ends due to the employee's refusal to accept proposed new working or pay conditions (amendment notice).
Check-in
The right to a severance payment, referred to in Article 8 of the Act of 13 March 2003 on special rules for terminating employment relationships with employees for reasons not attributable to the employees, is granted to an employee with whom an employer employing at least 20 employees terminated the employment relationship for reasons not attributable to the employee.
There is no doubt that the provisions of the aforementioned Act apply to final termination notices. However, it is debatable whether these provisions can be applied in the event of termination of an employment relationship based on a notice of amendment. Although the purpose of a notice of amendment is to change the employee's working or pay conditions and to continue employment, not to terminate the employment relationship, if the employee refuses to accept the new conditions, the contract terminates upon the expiry of the notice period.
Case law
Case law has consistently held that an employee is entitled to severance pay only when the termination of an employment contract is due to reasons entirely beyond the employee's control. If the employer offers the employee objectively acceptable changes in the termination notice, and the employee rejects them, their decision may be considered a contributing factor to the termination. In such a situation, the employee is not entitled to severance pay.
In a recent judgment examining this issue (dated January 14, 2025, I PSKP 23/24), the Supreme Court also indicated that treating an employee's refusal as a contributing factor would, for example, occur when, given the interests of the employee and the employer, as well as the type and nature of the proposed work, it can generally be expected that the employee should accept the new terms and conditions offered. Therefore, after a refusal to accept them, severance pay may only be awarded exceptionally, if the new terms proposed in connection with the notice of amendment can be deemed to be intended to terminate the employment relationship or objectively unacceptable. If an employee rejects the new terms and conditions, which are objectively acceptable and not a sham proposal, in fact intended to terminate the employment relationship, they clearly have the right to do so. However, in the Supreme Court's view, there is no rational reason that would justify paying severance pay in such a situation.
This article is for informational purposes only and does not constitute legal advice.
The law is current as of January 30, 2026 .
Author:
Series editor:
