In Wage Compensation Following Invalid Termination of Employment, the Court Examines Only the Circumstances Relevant under Section 69(2) of the Labour Code

June 2026

In its judgment of 12 June 2026, Case No. 21 Cdo 596/2025, the Supreme Court dealt with a dispute concerning wage compensation following a final and binding determination that a notice of termination of employment was invalid. The employer argued, in particular, that the employee had notified the employer late that he insisted on further employment, requested a reduction in wage compensation, and challenged the method used to determine the employee’s probable earnings.

The Supreme Court confirmed its previous case law, according to which the requirement to notify the employer “without undue delay” that the employee insists on further employment is merely an organisational time limit; moreover, the legislation has since been amended.

When deciding on a potential reduction of wage compensation, the relevant circumstances are primarily those relating to the employee’s further employment opportunities after the expiry of six months, rather than other circumstances relied on by the employer. At the same time, however, the Supreme Court quashed the decisions of the lower courts in the part concerning the calculation of probable earnings, as those earnings had not been determined in accordance with the Labour Code.

The judgment clearly summarises and confirms the settled case law concerning Section 69 of the Labour Code and also recalls that probable earnings cannot be determined mechanically on the basis of average earnings from a previous period.

HR LU 06/26 download here.

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