Dismissing an employee: rules, notice and template (2026)

Dismissing an employee is one of the most delicate tasks an employer can face. The procedure is governed by the Salaried Employees Act, the Employment Certificate Act, any collective agreements and general employment-law principles, and flawed dismissals can cost the business dearly. This guide goes through the rules on fair dismissal, the statutory notice periods and what you should do before you send the dismissal.

When is a dismissal fair?

Section 2 b of the Salaried Employees Act requires that a dismissal of a salaried employee who has been employed for at least 1 year is "reasonably justified by either the business's or the employee's circumstances". An unfair dismissal can trigger compensation to the employee.

Fair grounds on the business's side

• Operational reasons: cutbacks, restructuring, mergers or the elimination of a position
• Finances: the business's finances require a reduction in staff

Important: the business should as a rule consider whether the employee can be redeployed to another position before dismissing on the grounds of the business's circumstances.

Fair grounds on the employee's side

• Poor performance: documented and raised on an ongoing basis
• Cooperation problems: documented, concrete and serious
• Misuse or rule breaches: for example alcohol or IT misuse (typically requires a warning)
• Sickness absence: long-term or frequent (requires careful handling)

When is a dismissal not fair?

• Discrimination (sex, race, disability, pregnancy, religion, age and more)
• Dismissal during pregnancy or leave (strongly protected)
• Retaliation for pointing out illegalities (whistleblower protection)
• Dismissal on the grounds of union membership

Notice period for salaried employees

Section 2 of the Salaried Employees Act sets the minimum notice periods for salaried employees. The notice depends on how long the employment has lasted:

Length of service	Notice period (employer to employee)
Probation (agreed, at most 3 months)	14 days
Under 6 months	1 month to the end of a month
From 6 months	3 months to the end of a month
From 2 years 9 months	4 months to the end of a month
From 5 years 8 months	5 months to the end of a month
From 8 years 7 months	6 months to the end of a month

Collective agreements or individual agreements can set longer notice periods.

The employee's own notice period is typically 1 month to the end of a month, regardless of length of service.

Severance pay

For salaried employees with long service, there is a requirement of severance pay on the employer's dismissal (section 2 a of the Salaried Employees Act):

Length of service	Compensation
At least 12 years	1 month's pay
At least 17 years	3 months' pay

The compensation is paid regardless of whether the employee subsequently retires. The former rule that the compensation lapsed on transfer to the state pension or an employer-funded old-age pension was repealed by a legislative amendment in 2015.

Step by step: a lawful dismissal

Step 1: document the basis

Before you send a dismissal, you must have documentation for the reason:

• Performance problems: warnings, emails and minutes from conversations
• Operational reasons: decision minutes and accounts
• Rule breaches: incident reports and statements

Documentation is your most important protection against a subsequent case.

Step 2: consider a warning

For problems concerning the employee's conduct or performance, it is good practice, and in practice often a precondition for a fair dismissal, to have given at least one written warning before dismissing.

The warning should:

• State the specific problem
• State what is expected of the employee
• State the consequence if there is no improvement

Step 3: hold a dismissal meeting

It is recommended to invite the employee to a meeting before the dismissal letter is handed over. The purpose:

• Give the employee the chance to say something
• Hand over the dismissal in person
• Clarify practical questions

Always have a witness (for example HR or the immediate manager) at the meeting.

Step 4: the dismissal letter

The dismissal should be sent in writing with:

• The date of leaving
• Information about the length of the notice
• Any garden leave
• Any severance pay
• A reason (which must be given if the employee requests it)
• Information about holiday, pension and a reference

Garden leave vs. suspension

Garden leave means the employee does not have to attend work during the notice period but still receives pay. Typically used for:

• A risk of sabotage, data theft or competing acts
• Access to confidential information
• Uncomfortable relationships at the workplace

An employee on garden leave can take other paid work during the period, but the pay from it can under the rules be offset against the pay the employer must pay, unless otherwise agreed.

Suspension is a temporary prohibition on attending work while a matter is investigated. Pay is typically maintained during suspension.

Special rules for specific groups

Pregnant employees and parents on leave

Dismissal during pregnancy or leave is subject to a reversed burden of proof: the employer must prove that the dismissal is not based on the pregnancy or leave. Avoid dismissal in these periods unless the reason is entirely clear and well documented.

Staff and working-environment representatives

These employees enjoy special protection and can only be dismissed on compelling grounds. The union must as a rule be notified.

Older employees

Older employees are protected against age discrimination. Document that the reason is fair and not age-related.

Employees with a disability

The employer has an accommodation duty, that is a duty to make reasonable accommodations before dismissing. A failure to accommodate can constitute discrimination.

Summary dismissal vs. ordinary dismissal

Summary dismissal (bortvisning) is an immediate ending of the employment without notice. It is only lawful on a gross breach by the employee:

• Theft
• Unlawful absence
• Violence at the workplace
• Gross breaches of confidentiality

Summary dismissal requires the act to be serious enough and the employer to react quickly (typically within a few days).

Consultation requirements in collective redundancies

If you are dismissing a larger number of employees within 30 days, the Act on collective redundancies can apply. The specific thresholds depend on the size of the business. The Act means:

• Consultation with the employee representatives (staff representative or union)
• Notification of the regional labour-market council and the job centre
• In some cases an extended notice

What does an unfair dismissal cost?

An employee who considers themselves unfairly dismissed can pursue the claim via their union or through the courts. The compensation is set specifically:

• For an unfair dismissal of a salaried employee (section 2 b): compensation whose size depends on the length of service and the circumstances, in serious cases up to several months' pay
• For a missing or deficient employment certificate: compensation whose size depends on the nature of the defect
• For discrimination: a separate compensation that can be substantial

Frequently asked questions

Can I dismiss an employee by text or email?

A dismissal can in principle be made by email, but a formal letter is recommended. Make sure you can document that the notice has been received.

Must I state a reason for the dismissal?

For salaried employees, you must state a reason if the employee requests it. It is good practice to include a reason from the start.

Can an employee demand their position back?

Normally not. But for certain types of discriminatory dismissal or breaches of special legislation, reinstatement can occur.

What happens to holiday in the notice period?

The employee accrues holiday as normal. Accrued holiday can be taken during the notice period under the Holiday Act's rules, and unused holiday is settled on leaving.

Must dismissal take place at a particular time of the month?

For salaried employees, dismissal takes place "to the end of a month", that is the leaving date is the last day of a month. The notice runs from the receipt of the dismissal.

Conclusion

A lawful dismissal requires correct notice, a fair reason and proper documentation. Errors in the process, even in an otherwise justified dismissal, can result in compensation to the employee. Invest time in preparing the dismissal correctly: document, warn, hold a meeting, and write a correct dismissal.

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The content of this article is for guidance only and does not constitute legal advice. Consult an employment lawyer for advice on your specific situation.