European Restructuring Monitor (ERM)
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.
55/2001: Ch. 12, Sec. 2. 1333/2021: Ch. 6, Sec. 44-45. 1233/2013: Ch. 7, Sec. 43-45. 449/2007: Sec. 21-23
The Employment Contracts Act sets the regulation for compensation for an employer’s wrongful termination of an employment contract. An employer who terminates an employment contract against the conditions set by legislation, or who has caused the employee to end the contract through disrespecting employment legislation, may have to reimburse the ex-employee with a sum corresponding to a minimum of three and a maximum of 24 months' salary. For employee representatives, the sum may correspond up to 30 months' salary. The reimbursement sum will depend on:
Furthermore, if cooperation negotiation procedures during restructuring are not respected, the employer may be liable to pay an affected employee a compensation of up to €35,000 (indexed). This applies to private companies with 20 employees or more. For local governments the maximum compensation level is €30,000 and for state employers and employees, the maximum compensation sum is €34,140. The compensation sum will depend on the degree of neglect towards negotiation procedures, the general conditions of the employer, and the duration of the employee's employment contract as well as the nature of the measure that affects him/her. An employer can in addition be liable to a fine by, in other ways, breaching the obligations to co-operate.
Employees can take action against non-compliant employers through trade union representatives and the courts. The indemnification expires if no action is taken within two years of the employer's breach against contract termination conditions.
Trade unions generally offer legal support to their members in case of employer non-compliance with dismissal regulations.
Eurofound (2015), Finland: Effects of non-compliance with dismissal regulations, Restructuring legislation database, Dublin, https://apps.eurofound.europa.eu/legislationdb/effects-of-non-compliance-with-dismissal-regulations/finland
This Eurofound research paper explores key trends in restructuring in recent years, highlighting the companies that announced the largest job losses and job gains in the EU. It builds on an analysis of company announcements recorded in Eurofound’s European Restructuring Monitor (ERM), alongside a new classification of restructuring events involving changes in company location.
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Employers increasingly use tools such as email, SMS and messaging apps like WhatsApp or Signal to communicate with employees. While these technologies offer both efficiency and convenience, their use in communicating sensitive information, particularly for notifying employees of dismissal, raises legal concerns. This article explores the legal framework on dismissals across the EU, with a special focus on the use of digital means for communicating employment dismissals. Drawing on examples from various Member States, it examines the legal validity of digital dismissals.
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In 2024, the automotive sector in the EU came to the fore in public and policy discussions. The focus was on the slowdown in electric vehicle (EV) sales, rising global competition, belated investments in new technologies, and the potential closure of production lines in Europe. A number of European car manufacturers and suppliers announced their intention to make large-scale redundancies and change long-standing collective agreements on job security and wages, while workers raised concerns amid demonstrations and industrial action.
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