This graduate thesis deals with the topic of the termination of employment contract, with special reference to business conditioned cancellation of the employment contract as one of the types of regular termination. The institute of termination of a contractual relationship, especially business conditioned cancellation, is very extensive and is the main component of the working life of every adult and increasingly minors. Cancellation is the most common way to terminate the contract and it is very important to consider the reasons and ways of it because that cancellation has important consequences for the worker who may later face various problems finding a job and also including financial problems. It is also important to know the rights and obligations of workers and employers in order to respect them and to protect workers from unilateral, arbitrary decisions of employers and guarantee their safety, which is the central role of labor legislation in the Republic of Croatia. Firstly, the institute of dismissal in general will be discussed, also mentioning other ways of the termination of employment. The main differences between regular and extraordinary dismissal will be discussed, as well as a comparison of business conditioned cancellation, which is the main topic of work, with other types of regular dismissal and then the conditions that must be met in order to dismiss termination of employment and how the procedure is carried out before it, in what form it must be and whether the workers are entitled to severance pay. As already mentioned, dismissal is one of the most common ways of terminating employment and various examples of case law that have solved its problems will be also mentioned.