Employers, do not always assume that once two months have passed from the intended last day of employment (as per your termination notice), the employee can no longer challenge its validity in court.

Employees have a preclusive two-month period to file a lawsuit for invalid termination. However, the Supreme Court has now established that while this period is not formally extended, it can either be temporarily suspended or delayed if the employer and employee have concluded an out-of-court settlement agreement under the Civil Code.

Moreover, be aware that if fewer than five days remain before the end of this period when the settlement agreement ends, the period will not expire earlier than 10 days after it resumes.

An out-of-court settlement agreement can be concluded in writing or orally, explicitly or implicitly, as long as it is clear that both parties intend to negotiate a specific right or the circumstances establishing it, with the aim of resolving the matter outside of court proceedings. However, such an agreement does not include a mere unilateral attempt by one party to initiate discussions or a simple exchange of final positions that leave no room for further negotiation or an amicable resolution.

The above applies equally to both immediate terminations of employment and dismissals during the probationary period by the employer.

Therefore, when dealing with employees whose employment is being unilaterally terminated, ensure that your internal procedures, as well as the form and content of communication with the employee, are aligned with these principles.

(Supreme Court Judgment of 10 December 2024, Case No. 21 Cdo 565/2024)

Author: Helena Hailichová