Look, nobody likes to talk about it, but at the end of the day, terminating employees is a part of business. Many major global employers implemented massive workforce reductions in 2024, with Volkswagen announcing 35,000 layoffs, Intel cutting 15,000 positions, and Tesla reducing its workforce by 14,000.
There's just no way to get around it. The reasons are many, but it always ends up the same-sometimes you have to tell people they are being let go.
But when dealing with a globally distributed workforce, terminations get complex fast. What works in the U.S. may not be legal for your employee remote working from Aruba. Even if they're on the same team working for the same company different laws may apply.
With remote work normalizing international hiring practices, companies that fail to navigate these cross-border termination requirements face significant legal ramifications and disruption. Having a plan for global termination protocols is essential for sustainable international growth.
Consider the stark differences: while Singapore requires notice periods ranging from one day to four weeks based on tenure, Vietnam mandates 30 to 45 days, depending on the contract. Japan's employment culture makes termination so restrictive that many employers resort to alternative strategies rather than direct dismissal. Meanwhile, countries like Ecuador and Uruguay have no official notice periods at all.
What is a notice of termination?
A notice of termination is a formal notification that an employer provides to an employee informing them that their employment will end on a specified future date. It serves as an advanced warning that the employment relationship will conclude, giving the affected worker time to prepare for the transition. Notice of termination may also be referred to as a termination notice, pink slip, or termination letter.
The primary purpose of a termination notice is to provide employees with sufficient time to secure alternative employment, make necessary financial arrangements, and attend to personal matters before their income is terminated. Providing ample notice also allows organizations to plan for knowledge transfer, train replacement personnel, and ensure business continuity during the transition.
Most countries worldwide require employers to abide by termination notice periods when offboarding employees. According to Deloitte, employers are required to provide a termination notice period in approximately 75% of countries worldwide. This widespread mandate, although varying across borders, reflects the collective recognition that workers deserve advance notice before losing their livelihood.
Terminating without "at-will" employment
For U.S. companies, "at-will" employment is a common practice that allows them to terminate employees without providing specific cause or advance notice. However, at-will is a double-edged sword-while it makes it easier for companies to dismiss employees without proper cause or notice, it also allows employees to resign from their position without notice or reason as well. That said, employers still cannot terminate employees for discriminatory reasons or in violation of other labor protections.
Countries outside the U.S. seldom utilize this practice, which significantly complicates the termination of global employees. Most international jurisdictions require "just cause" for termination, meaning employers must demonstrate legitimate business reasons and follow specific procedural requirements. If a company is based in the U.S. and is in the process of adding global employees, it must be aware of how the lack of at-will employment will affect its global business practices.
Writing termination clauses
International employment laws vary significantly, with each jurisdiction establishing distinct termination notice requirements that employers must follow. In Switzerland, for example, if a company plans to terminate an employee, it must observe the following termination notice periods:
- One month for employees who have been with the company for less than one year
- Two months for employees who have two to nine years of tenure with a company
- Three months for any employee who has been with the company for more than nine years
These variations exist across all international markets, and non-compliance can result in significant legal penalties, financial liability, and operational disruptions.
To ensure compliance when terminating global employees, companies must place extra emphasis on writing termination clauses into their international employment contracts. These clauses should address notice periods, severance obligations, and acceptable grounds for termination, taking into account each jurisdiction's specific requirements.
Effective termination clauses should also specify calculation methods for notice pay, outline any garden leave provisions, and clearly define post-employment obligations such as non-compete restrictions. Before planning to terminate employees, companies must ensure their employment contracts provide the right protection through well-drafted termination clauses.
Building a case for termination
In most countries, employees are protected from termination without cause through local employment laws. For instance, if a company in Mexico is trying to terminate an employee, they must prove the employee did one or more of the following:
- Intentional damage to company property
- Sexual harassment or bullying
- Misrepresented work qualifications or falsified employment documentation
- Revealed company secrets or confidential information
- Disobedience toward employers or managers
- Attending work under the influence of alcohol or drugs
- Committing immoral acts within the workplace
- Failure to comply with company procedures
- Repeated unexcused absences in less than 30 days
For example, under Mexican law, employers are required to provide written notice to employees stating the specific reasons for termination, including the exact dates when any misconduct occurred. This notice must be delivered personally or through a competent authority within five business days of the termination decision.
The burden of proof lies entirely with the employer in termination cases. Since each country has its own requirements for notifying employees of termination, it is essential for companies to build a comprehensive, well-documented case before attempting to terminate a global employee. This includes maintaining thorough records of any misconduct, disciplinary actions taken, and witness statements that can substantiate claims of just cause. This task must be executed in accordance with the country's labor requirements regarding termination causes.
Termination laws and practices by country
Understanding the nuanced termination requirements across different jurisdictions is vital for global employers. Each country maintains a distinct legal framework that reflects local employment traditions and worker protections.
United Kingdom
The U.K.'s employment landscape is undergoing significant transformation in 2025 with the introduction of the Employment Rights Bill. The most substantial change removes the traditional two-year qualifying period for unfair dismissal claims, making protection against unfair dismissal a "day one" right for all employees. This shift dramatically expands worker protections and increases potential liability for employers making termination decisions.
The new legislation also introduces a statutory probationary period that can extend up to nine months, during which different dismissal rules may apply. Employment tribunals now have enhanced powers to increase protective awards by up to 25% for employers who fail to comply with the Code of Practice on Dismissal and Re-engagement, particularly in cases involving "fire and rehire" practices. Changes to the U.K.'s termination of payments reflect the Labour Government's commitment to strengthening worker rights and creating more balanced employment relationships.
Germany
German employment law provides some of the world's strongest worker protections through the Kündigungsschutzgesetz (Protection Against Dismissal Act). This legislation applies to companies with more than 10 full-time equivalent employees and covers workers who have been employed for more than six months. Under these conditions, terminations must be "socially justified," meaning employers must demonstrate valid operational, behavioral, or personal reasons for dismissal.
In Germany, Statutory notice periods range from four weeks to seven months, depending on the length of service. For operational dismissals during economic difficulties, employers face particularly stringent requirements, including proving persistent work reduction, demonstrating that no alternative employment exists within the company, and conducting proper "social selection" (Sozialauswahl) that considers factors like seniority, age, family obligations, and disability status. While severance payments are not automatically required, they are commonly the result of court settlements, typically calculated at half a month's salary per year of service.
France
France operates a structured three-tier termination system: resignation (employee-initiated), mutual agreement (rupture conventionnelle), and dismissal (employer-initiated). For employer-initiated dismissals, the law mandates a formal procedure beginning with a pre-termination meeting, which must be scheduled at least five working days in advance. Following this meeting, employers must wait a minimum of two days before issuing any dismissal decision.
The dismissal process requires written notification specifying the exact reasons for termination. Employees with more than eight months of service are entitled to severance pay, calculated at one-quarter of a month's salary per year for the first 10 years, and one-third of a month's salary thereafter. Notice periods vary according to employment contracts and collective agreements, with payment required throughout the notice period regardless of whether the employee continues working.
Netherlands
The Netherlands implemented significant changes to employment law in 2025, particularly ending the enforcement moratorium under the Employment Relationships Deregulation Act (Wet DBA) on January 1st. The Dutch Tax Authority now actively enforces worker classification rules, with penalties beginning in 2026 for companies that misclassify employees as independent contractors. A "soft landing" approach applies throughout 2025, with no retroactive corrections before January 1st unless malicious intent is proven.
Dutch law requires employers to provide a statutory transition allowance calculated at approximately one-third of a month's fixed salary per year of service. The maximum transition allowance increased from EUR 94,000 to EUR 98,000 in 2025, or one year's total compensation, whichever is higher. A written termination notice is mandatory, and employers must demonstrate legitimate business reasons for dismissal while following specific procedural requirements.
Spain
Spain recently enacted Law 2/2025, which took effect on May 1, 2025, fundamentally changing termination procedures related to employee incapacity. The law eliminates automatic termination of employment contracts due to permanent incapacity, making such terminations conditional on the employee's consent and the employer's efforts to adapt the position or relocate the worker. This represents a significant shift toward greater worker protection and accommodation requirements.
The new legislation also introduces suspension of permanent incapacity benefits when employees perform work incompatible with their condition, and establishes urgent judicial proceedings for resolving termination disputes in these cases. These changes reflect Spain's commitment to protecting workers with disabilities and requiring employers to exhaust accommodation options before considering termination.
Australia
Australia introduced the Digital Labour Platform Deactivation Code and Road Transport Industry Termination Code in February 2025, extending employment-like protections to independent contractors in specific sectors. These codes, which commenced on February 25, 2025, establish comprehensive disciplinary processes that must be followed to ensure the fair deactivation of digital platform workers and the fair termination of independent transport workers. The requirements go significantly beyond existing small business dismissal codes.
The new codes in Australia mandate specific warning and appeal processes before any deactivation or dismissal can be considered fair. This expansion of procedural fairness to contractor relationships represents a notable shift in Australian employment law, striking a balance between worker protection and the integrity of independent contracting arrangements, while requiring employers to implement more rigorous termination procedures.
Japan
Japan maintains one of the world's most restrictive termination environments, with no concept of "at-will" employment. Japanese law requires that all terminations be "objectively reasonable and appropriate upon social convention," creating an extremely high bar for dismissal. The Labor Standards Act mandates a minimum 30-day notice period or payment in lieu, but cultural expectations and legal requirements make termination significantly more complex.
For economic dismissals, Japanese case law has established four strict requirements: demonstrating the necessity of reducing the workforce, proving termination is the only viable option, conducting objective employee selection, and following just procedures with thorough communication.
Employers must exhaust all alternatives, including director pay cuts, hiring freezes, voluntary retirement programs, and employee transfers, before considering involuntary termination. There is no statutory severance pay requirement; however, many companies provide compensation to facilitate mutual agreement terminations, rather than face potential legal challenges.
How an employer of record can help
For many companies, determining how to effectively end their employment arrangement with an employee can be a challenge, especially with the various requirements present in each foreign country. In this instance, many companies seek the help of an Employer of Record (EOR). These providers operate as the legal employer in the country and help companies navigate local labor laws to ensure compliance, all the way from onboarding to termination.
Make global employment (and termination) easy with Pebl
If you've learned anything from this blog, it's that termination notice requirements vary wildly across the globe. Learning everything on the fly is just not going to cut it-you have to know these down to the letter (or kanji) in order to stay compliant.
With Pebl's (previously Velocity Global) Employer of Record service, we operate as the legal employer in 185+ countries worldwide. That means our country-specific experts are the ones who handle payroll, benefits, onboarding, and everything else, including making sure that any terminations are compliant with local regulations, worldwide. Reach out to make your global journey easier.
Disclaimer: This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided "as is," and no representations are made that the content is error-free.
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Topic:
HR Strategies
