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The article discusses Article (77) of the Labor Law, which requires employers and employees to read the compensation clause related to unjustified contract termination before signing it. The article explains that compensation is calculated based on 15 days’ wage for each year of service for indefinite contracts, or the remaining wage of the fixed-term contract, with a minimum of two months’ pay. If the contract does not specify a compensation clause, the usual indemnity is the value of the remaining contractual wages, unless the contract states otherwise, provided it complies with the law. It emphasizes the importance of reviewing employment contracts to ensure rights are protected, as the compensation clause can make a significant financial difference. Both employees and employers should thoroughly understand this clause before signing.
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