Supreme Court allows severance for state enterprise directors whose fixed-term contracts expired by law after five years.
Legislator summary
AI generatedThe Supreme Court of Poland partially overturned a lower court's dismissal of a director's claim for severance pay upon the expiration of his five-year fixed-term contract. The plaintiff argued that the statutory expiration of his indefinite-term appointment did not constitute a termination warranting compensation, while the lower courts held that only voluntary dismissal or early termination triggered the right. The court ruled that the term 'termination' encompasses statutory expiration and that the specific exclusion for five-year terms was inapplicable because the contract was originally indefinite, thereby granting the director his severance rights.
Legislator headnote
AI generatedArt. 2 ust. 2, 3 ustawy z dnia 9 marca 1990 r. o zmianie ustawy o przedsiębiorstwach państwowych; The expiration of a director's employment contract by statutory operation after five years constitutes a termination entitling the director to severance pay, as the statutory term does not negate the original indefinite nature of the appointment.