Legal & Tax Alerts

The High Court of Cassation and Justice clarifies the calculation method of the notice period

On 20 May 2024, the High Court of Cassation and Justice (“HCCJ“) issued Decision no. 8/2024 (the “Decision“) in the field of employment relations. In ruling on the appeal in the interest of the law, the HCCJ established that, in interpreting and applying the provisions of article 75 para. (1) and article 278 para. (1) of Law no. 53/2003 – Labor Code (the “Labor Code“), the notice period for dismissal shall commence on the day following the communication of the notice and shall end on the last day of the period. The decision is mandatory and must be reasoned and published in the Official Gazette.

Prior to this Decision, there was a lack of uniform case law on the calculation method of the notice period, with some courts considering that neither the day of the notification nor the last day of the period should be taken into account when calculating the notice period, in accordance with the provisions of the Civil Procedure Code (article 181) and the Civil Code (article 2553).

The HCCJ has established through the Decision that the above-mentioned provisions do not apply to the notice period in case of dismissal.

The decision of the HCCJ has a significant impact on employers and employees, providing a clear and predictable interpretation of the legal provisions on the calculation method of the notice period. In a context where failure to grant the full minimum notice period provided for by the Labor Code may lead to the annulment of the dismissal decision, the reinstatement of the dismissed employee and the employer’s obligation to pay compensation equal to the indexed, increased and updated salaries and other rights that the employee would have benefited from, the clarification of the calculation method of this period is welcomed, eliminating uncertainties and ensuring the uniform application of labor law.

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