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.
Employment Protection Act, article 3, 17, 18 and 23
Collective redundancies (dismissal of at least 6 employees in companies with 21-59 workers, at least 10% (or 26) in companies with 60-499 workers, or at least 30 dismissals in larger firms) have to be announced to the public authorities and only come into effect if they are approved by the authorities within three weeks time. The law does not foresee any penalties for the employer in case of non-compliance.
Since 2004, the employment protection act only applies to establishments with a minimum of ten full-time workers on permanent contracts. Workers working in the establishment for at least six months who object to their individual dismissal on social grounds may turn to the works council for complaint. The works council shall consult with the employer to find a solution.
In case a works council is not in place the individual worker has to appeal to the labour court.
The above derives from the Employment Protection Act as the Work Constitution Act does not foresee the case of non-compliance as the employer is not obliged to conclude a balance-of-interests agreement. However, a social plan has to be agreed upon, either by the works council and management or by an arbitration committee.
In 2021, the Employment Protection Act was amended. More works' council election initiators were granted better protection against dismissals. The new rules apply to the first six employees listed in the works council election as well as works' council election initiators. They cannot be dismissed on ordinary grounds until the invitation to the election meeting. Dismissals are only possible due to extraordinary, special reasons.
Eurofound (2015), Germany: Effects of non-compliance with dismissal regulations, Restructuring legislation database, Dublin, https://apps.eurofound.europa.eu/legislationdb/effects-of-non-compliance-with-dismissal-regulations/germany
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