Mismanagement occurs in all workplaces and whether an employee is aware of the act or not, mismanagement constitutes a failure to comply with the obligations according to the employment contract. Depending on the severity the breach of contract is, it can result in termination of personal reasons. In 2022, a labor law reform was introduced to enhance employee safety and employment protection. Previously, a termination had to be based on a factual basis to be valid. However due to the labor law reform, the requirment has been replaced with factual reasons to increase the predictability of terminations for both employers and employees.

The purpose of the thesis is to investigate the extent an employee can misbehave at work before it constitutes factual reasons for termination. Furthermore, the employer's responsibilities in the terms of minor intervention as major actions will be investigated to ensure the termination to be carried out in the correct way according to the legislation and to be valid. Different legal sources such as legislative history, case law, doctrine and other litterature will be analyzed to achieve the purpose with this thesis.

With the development of the Employment Protection Act, employer's free right of termination has significantly been restricted. Increased employment protection alongside restrictions on the employer’s right to lead and distribute work means that the employer must now take various actions before terminating an employee. These actions can range from minor actions such as issuing warnings or reprimand to more significant intervention actions as redeployment. Employers can therefore never terminate an employee based on occasional occasions of mismanagement. Regardless of the seriousness of the breach of contract, the employer needs to make an overall assessment, considering the MMS-method to determine whether there are factual reasons to ensure a valid termination.