Eurofound's ERM database on restructuring-related legal regulations provides
information on regulations in the Member States of the European Union and Norway
which are explicitly or implicitly linked to anticipating and managing change.
If the employer is to fall under the scope of legislation on collective dismissal, at least 10 employees must be laid off within 30 days. If at least 5 people are subject to a form of termination of the contract of employment not connected to reasons related to the individual employees this can also be considered in the calculation. The shipping, hunting and fishing, and military aviation sectors are excluded from the legislation, as well as civil servants.
Economic reasons for restructuring are accepted in legislation where dismissals need to be 'objectively justified', and the employer has to demonstrate that no suitable alternative work is available.
When deciding whether a dismissal is objectively justified by curtailed operations or rationalisation measures, the needs of the undertaking shall be weighed against the disadvantage caused by the dismissal for the individual employee.
Commentary
A notice does not have to be given in order to meet the definition. A declaration of intent is enough.
The definition in the Working Environment Act is equal to the definition found in the Labour Market Act.
Additional metadata
Cost covered by
None
Involved actors other than national government
National government
Involvement (others)
None
Thresholds
Affected employees: 10 Company size: 10 Additional information: No, applicable in all circumstances
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