Labor law

Employer’s Rights and Responsibilities

The employer’s rights encompass the ability to initially select the preferred employee for the job. The employer has the right to terminate an employee and dissolve the employment contract when it is justified by the law. Furthermore, the employer has the authority to manage work and provide instructions and directives related to work management. This so-called managerial right includes at least the employer’s right to issue directives regarding the content of the work, the method of performance, and working hours.

The right to manage also involves the employer’s authority to interpret, in a reasonable manner, how legal guidelines or agreements applicable to the employment relationship are to be applied. The employee always has the right to challenge such decisions and, if necessary, bring the matter before a court for resolution. Incorrect interpretation by the employer could result in, for instance, an obligation to provide compensation to the employee for any damages incurred.

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The Employment Contracts Act obligates the employer, even if the employment contract itself does not contain binding provisions.

The most significant obligation of the employer, from the employee’s perspective, can be considered the duty to pay wages. The employer is also bound by non-discrimination rules, which inherently prohibit treating employees unequally, as well as legal obligations related to occupational safety.

Additionally, the employer is required to provide the employee with information about the key terms of employment and to adhere to generally applicable collective agreements in their operations. Therefore, the rights and responsibilities of the employer and the employee largely complement each other, regardless of the industry.

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