Questions & Answers
Arbitrary dismissal and calculation of the compensation
I believe I have a strong case of arbitrary dismissal.
I understand from article 115 of Labor Law that if this is the case my employer is bound to compensate me for a maximum of 3 months total wages.
My questions are:
1) By using the word maximum does that mean they can pay less than 3 months?
2) My contracted monthly pay is split into two parts: basic and allowance. Could they argue I am only entitled to 3 months basic pay and not the total amount?
Dear Questioner,
Answering your questions by their numbers:
1) Yes. That is the meaning of the word maximum. And in the case that the court actually considers that the termination was arbitrary. It can be 1, 2 or 3 months.
2) No. The compensation in case of the arbitrary dismissal should be calculated based on the total monthly income.