The relation between employees and employers emerged a lot since the introduction of the labour law. Globalisation and easier trade between countries changed the way markets function and economies of developed countries are now facing strong competition from certain developing countries, where the standard of labour law is significantly lower or does not exist. Thus, labour law is facing challenges in addressing the new circumstances under which both social and economic rights, as well as the competitiveness of the national economy, need to be maintained. Regulation of termination of the employment agreement is one of the essential institutes which needs to be updated to reflect the new circumstances. There will be comprehensive negotiations needed between employers, aiming for a purely contractual approach, employees, aiming for the protection of their employment, and government, aiming for a balanced budget, as well as for maintaining long-term sustainable social security system. All of them need to take into consideration the international obligations of the country, as well as good practices of updating labour law standards in other developed countries.
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