The subject of this final work is, in the first part, to present eight legal reasons for termination of employment, with emphasis on regular and extraordinary termination of employment agreements. This final work further considers in more detail the legislative regulation of termination due to business reasons, as a subtype of regular termination of employment agreement. Reasons for cancellation, the procedure preceding the cancellation, the general elements affected by each cancellation such as annual leave and notice period, but also severance pay as a particular aspect of this type of cancellation, are discussed. In order to explore the issue of termination due to business reasons, each theory was supported by applied research where efforts were made to present practical challenges such as detecting permissible causes of economic, technical or organizational nature or calculating notice periods. The main purpose of this final work is to point out the peculiarities of termination due to business reasons of which employers must be aware in order to avoid unnecessary misunderstandings or possible disputes with the dismissed employee, while reflecting a transparent attitude towards workers who remain working in the company. The conclusion of this paper supports its purpose. That is, in order to legally terminate employment for business reasons, it is necessary for the employer to devote sufficient time to its preparation, study the conditions, properly determine duration of the notice period, implement the steps preceding the dismissal and properly conduct the dismissal procedure which, under certain conditions, includes the payment of severance pay to the employee being dismissed.