An employment agreement may be terminated on the following grounds: 1. mutual agreement of the parties; 2. decease of either an individual employer or employee; 3. expiration of the term of an employment agreement with no further extension; 4. demand of an authority so authorized by law; 5. reinstatement to the previous job or position of a wrongly dismissed employee; 6. the employee has been called to active military service; 7. a court judgement which sentences an employee to a punishment that prevents him or her from performing the job duties comes into force; 8. the employment agreement terminates at the initiative of an employer or an employee. When terminating an employment agreement with an employee, the employer shall fix the time for handover of the employee’s duties and specify such time in the decision to dismiss the employee. In addition, the employer shall be obliged to provide the terminated employee with the decision to terminate employment agreement, hand in his or her social and health insurance books and, if required by law, the severance pay on the date of his or her dismissal.