Employment in the Republic of Croatia is regulated by the Labour Law. A contract of employment is a fundamental document that is employed. In addition to the employment contract, the content of the employment relationship is governed by the collective agreement, employment rules, as well as an agreement between the works council and employer. A very common way of termination of the employment contract is dissmisal, that can be a regular and outstanding. To cancel the contract of employment are very important objective reasons. Both parties (employer and employee) can terminate the employment contract. When the cancellation of the contract, the employer is obliged to give reasons for the cancellation, while the worker may terminate not specifying any reasons. For regular employment contract termination is necessary to comply with statutory or contractual notice period, while with extraordinary notice, no notice period but to the termination of the employment contract by giving extraordinary notice comes at the time of delivery of the Decision on cancellation of the other side. An employment contract can be canceled only in extraordinary within fifteen days from the date of knowledge of the facts underlying the dismissal. This is limitation period and dismissal passed the expiry of that period is null and void. The legal effect of cancellation of the employment contract is termination of employment.