Employers may terminate contracts of employees who have a disability

2 November 2023 1 min read

At a glance

  • In rulings SL 1503 and SL 1817 of 2023, the Labour Chamber of the Supreme Court of Justice ruled that, in the case of employees who have a disability, the employer still has the power to terminate the employment contract. 
  • This is subject to their being a just cause for termination.

In rulings SL 1503 and SL 1817 of 2023, the Labour Chamber of the Supreme Court of Justice ruled that, in the case of employees who have a disability, the employer still has the power to terminate the employment contract. 

This is however subject to there being a just cause for termination. The Court clarified that where this is the case, prior authorisation from the labour inspector is not required. 

Authorisation from the Ministry of Labour is only required when the dismissal is directly related to the employee’s disability, and it has not been possible to make reasonable adjustments in the employee's position and workplace. This suggests that the employee's health condition is considered incompatible in a way that cannot be resolved.