A notice of grounds for termination represents the initial procedural stage in the process of termination of employment.
It is not merely a formality or simply one of the steps leading to a termination decision. A notice of the existence of grounds for termination (in essence, a notice of grounds for termination of an employment contract) has independent legal significance and plays an important role in assessing the lawfulness of a subsequent termination of the employment contract.
In employment disputes, courts pay particular attention to both the content of the notice and the manner in which it is issued. Irregularities at this stage frequently result in the annulment of the termination and the employer’s obligation to reinstate the employee or pay substantial compensation.
In the following text, we explain what a notice of grounds for termination is, when it is mandatory, what it must contain, and what the most common mistakes in practice are.
Misconceptions among employees (and sometimes employers)
One of the most common misconceptions among employees is the following:
“My notice period is 15/30 days, and if my employer wants to terminate my employment, they must also respect their own notice period. Is that what the law says?”
Employees have the statutory right to resign, without stating any reason, in writing, at least 15 days prior to the date specified by the employee as the date of termination of employment (notice period). The employment contract or the employer’s internal regulations may provide for a longer notice period, but not longer than 30 days.
On the other hand, there is no fixed period within which an employer may lawfully terminate an employee’s employment contract without stating a reason or legal grounds.
For every termination initiated by the employer, a lawful reason and a formal procedure must exist. That termination procedure begins with a notice of the existence of grounds for termination (hereinafter: a notice of grounds for termination of an employment contract).
When termination by the employer is justified
An employer may terminate an employee’s employment contract if there is a justified reason related to:
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the employee’s work ability and conduct (failure to achieve work results, lack of the necessary knowledge and skills, conviction for a criminal offense committed at work or in connection with work, failure to return to work after a period of employment suspension);
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a breach of work duties caused by the employee’s fault (e.g., negligent or careless performance of duties, abuse of position, or irresponsible use of work resources);
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failure to comply with work discipline (e.g., refusal to follow work instructions, abuse of sick leave, reporting to work under the influence of alcohol or narcotics, providing false information when entering employment, or violating rules established by the employer’s internal acts);
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or reasons related to the employer’s operational needs (redundancy or refusal to conclude an amendment to the employment contract).
What is a notice of grounds for termination
A notice of grounds for termination of an employment contract is a written act of the employer informing the employee of the existence of grounds for termination and granting the employee a time limit to respond to those grounds.
Its legal basis is found in Article 180 of the Zakon o radu (Labour Law), which prescribes the employer’s obligation to enable the employee to exercise the right of defense prior to terminating the employment contract.
It is important to emphasize that the notice:
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is not a disciplinary measure,
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is not a sanction,
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does not directly result in the termination of employment.
Its purpose is twofold:
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to allow the employee to comment on the allegations raised against them,
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to allow the employer to further examine the facts and evidence and thereby ensure procedural lawfulness in any subsequent termination process.
Precisely because of this role, the notice must not be treated as a mere formal fulfillment of a statutory obligation.
When a notice of grounds for termination is mandatory
A notice of grounds for termination is mandatory in cases where the employer terminates the employment contract due to the employee’s conduct, particularly where there is:
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a breach of work duties,
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non-compliance with work discipline.
In these situations, the law expressly requires that the employee be served with the notice before the termination decision is made and be granted a period to submit a statement.
When the notice of grounds for termination is not mandatory
A notice of grounds for termination is not required in cases of:
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termination due to redundancy,
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termination by operation of law,
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expiry of a fixed-term employment contract,
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certain cases of failure to achieve work results (subject to specific conditions).
In practice, a frequent mistake is the mechanical use of the notice, without clearly distinguishing between termination grounds related to the employee’s conduct and those based on organizational or objective reasons.
Mandatory content of the notice of grounds for termination
One of the key issues in court practice is whether the notice contains all legally prescribed elements. An incomplete or imprecise notice often leads to the unlawfulness of the subsequent termination.
The notice must contain:
1. A specific description of the act or conduct
The description must be:
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factually precise,
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time-specific,
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clear and understandable to the employee.
General statements such as “inappropriate behavior” or “breach of work discipline,” without specifying concrete actions, are insufficient.
2. Legal qualification of the breach
The notice should specify:
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which specific work duties or rules were violated,
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which internal act or statutory provision the employer relies upon.
3. Notice of the possibility of termination
The employee must be clearly informed that, if the grounds are established, termination of the employment contract may follow.
4. Time limit for response
The law prescribes a minimum period of 8 days from receipt of the notice during which the employee has the right to submit a written statement.
5. Signature of an authorized person
The notice must be issued by a person authorized to represent the employer or to decide on rights and obligations arising from employment.
The absence of any of these elements constitutes a serious procedural defect.
The employee’s right to respond to the notice and its purpose
The right to respond is not a mere formality but an essential part of the procedure. The employer is obliged not only to provide a time limit for response but also to genuinely review and consider the employee’s statement before making the termination decision.
In practice, the following question often arises:
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whether the employee’s silence affects the lawfulness of the procedure.
The employee’s silence does not prevent the employer from continuing the process. However, the employer must ensure that the employee was genuinely given the opportunity to respond to the notice of the existence of grounds for termination.
The most common employer mistakes in practice
Courts in the Republic of Serbia annul dismissals in a large number of employment disputes precisely due to mistakes made at the notice stage. The most common mistakes include:
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vague and undefined descriptions of the alleged breach,
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listing multiple unrelated events without a clear connection to a specific termination ground,
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serving the notice with a significant time gap after the alleged breach (more than six months),
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copying provisions from internal regulations without a factual description,
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issuing the notice merely “for form’s sake,” without a genuine intention to allow the employee to defend themselves.
A particularly risky practice is the so-called “accumulation of breaches,” where actions from an extended period are listed in a single notice without clearly classifying breaches of work duties and work discipline.
With regard to the clarity of the notice, although the Labour Law itself does not expressly require that evidence be delivered together with the notice of the existence of grounds for termination, court practice considers such evidence an important part of the notice:
“The employer is obliged to provide the employee with the evidence referred to in the notice of the existence of grounds for termination of the employment contract if the employee objects that, without reviewing their content, they cannot comment on the validity of the allegations.”
(Supreme Court of Cassation, Rev2 1039/2021, 18 May 2021, confirmed at the session of the Civil Division on 7 December 2021)
Relationship between the notice and the subsequent termination
The notice of grounds for termination and the subsequent termination decision must be mutually connected. Termination cannot be based on facts that were not the subject of the notice, nor on entirely different conduct of the employee.
Furthermore, the notice does not have unlimited effect over time. Employers must observe statutory limitation periods, meaning that termination may be given within six months from the day the employer became aware of the facts constituting grounds for termination, and no later than one year from the day those facts occurred.
Conclusion
A notice of grounds for termination of an employment contract is not a mere formality but a key procedural prerequisite for the lawful termination of employment in cases involving breaches of work duties and discipline.
A properly drafted notice:
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protects the employee’s rights,
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reduces the risk of employment disputes,
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ensures legal certainty for the employer.
Conversely, an inadequate or purely formal notice often proves to be the most costly mistake in the termination process. For this reason, it is always advisable in practice to approach this stage carefully and with appropriate legal support.
Law Firm Petrović Mojsić & Partners