An Employee May Be Entitled to Agreed Severance Pay Even in the Absence of Genuine Organisational Grounds

In its judgment of 27 August 2026, Case No. 21 Cdo 1215/2025, the Supreme Court considered an employee’s entitlement to severance pay agreed in a mutual termination agreement. The parties stated in the agreement that the employment relationship was being terminated on grounds of redundancy under Section 52(c) of the Labour Code and that the employee was entitled to severance pay equal to three times his average monthly earnings. In reality, however, the employer had … Continue reading An Employee May Be Entitled to Agreed Severance Pay Even in the Absence of Genuine Organisational Grounds