Czech Supreme Court accepts US at will termination clause

The zero edition of the journal EELC, which provides a summary of judicial decisions of particular European countries courts, includes a Czech Supreme Court decision case No. 21 Cdo 4196/2007 summarised by Natasa Randlova. This judgment deals with a notice of termination which was given by an employer to his employee according to an employment contract under Californian law (applicable due to choice of law made by the parties). The termination was given for no reason, that is why the employee claimed, that the termination was in breach of Czech law, and therefore invalid. But the Supreme Court ruled that this termination is in contrary neither to Czech public order, nor the mandatory rules of Czech law as specified by the Rome Convention on the Law Applicable to Contractual Obligations. So according to this decision of the Supreme Court, an “at will” termination which is in accordance with foreign law may be valid.

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