Legal Problems in Remuneration and Payment of Wages in Stead of Advance Notice in Contract Termination

Abstract

This article aims to study the legal issues surrounding the payment of remuneration and wages in place of advance notice in cases of contract termination. The study found that while both the Civil and Commercial Code and the Labor Protection Act stipulate requirements for providing advance notice upon termination, they diverge in specific provisions: the Civil and Commercial Code mandates remuneration in lieu of advance notice, whereas the Labor Protection Act requires payment in the form of wages. According to legal principles, when a specific law like the Labor Protection Act exists, it should take precedence over general laws, such as those in the Civil and Commercial Code. The Civil and Commercial Code’s allowance for non-monetary remuneration instead of advance notice can leave employees without protections under the Labor Protection Act, which is not classified as a public order law. Additionally, employees are not entitled to interest or additional compensation and cannot seek recourse with a labor inspector when remuneration is substituted for advance notice, unlike under the Labor Protection Act’s wage-based provision. The current interpretation requiring verbal advance notice thus excludes employees from protections intended by the law. It is recommended that the principle of wage payment instead of advance notice, as specified in the Labor Protection Act, be applied as the specific governing law.