Restructuring legislation

In the case of planned changes in the business operation, including collective dismissals (within 30 days, dismissal of at least 5 employees in companies with 21–99 employees, at least 5% of the workforce in companies with 100-600 employees, at least 30 employees in larger firms or at least 5 employees aged 50+), the employer is obliged to inform the works council and, if demanded by the works council, consult on the implementation of the changes, including measures to avoid or reduce collective dismissals. If the planned changes bring about negative consequences (understood as reduction of the income, longer commuting obligations and job loss) for all or a considerable number of employees in companies with permanently at least 20 staff members, a social plan can be agreed to avoid, reduce or remove the negative consequences for the employees. If the parties fail to agree on a social plan, the works council may refer the case to a public mediation and arbitration board (local labour and social court) consisting of a professional judge, two representatives of the company to be nominated by the employer and the works council and two other members from a list of people nominated to such boards. The board has to decide as quickly as possible, taking into account the interest of the company as well as of the employees. The decision of the board has to be implemented.

The information and consultation process refers to the period of time during which the employer has to provide information about collective dismissals (namely, within 60 days, cases of dismissals of at least 10 workers in companies with 20-99 employees, of at least 10% of the workforce in firms with 100-299 employees or of at least 30 dismissals in firms with 300 or more staff) and unions' representatives may ask questions and make suggestions about the social plan. During the information and consultation process, the employer has the obligation to inform workers on the intention to proceed to collective layoffs. The employer also has to provide information on the economic and social context of the firm, the reasons why he/she wants to proceed to collective dismissals, the timeline and the workers involved in the collective dismissals. During the information and consultation process, the employer must consult the workers' representatives (works council/union representative/workers) in order to avoid or reduce the collective redundancy and its consequences. The representatives may ask questions, make suggestions or comments regarding the business transfers and/or collective dismissals, as well as contest the procedure in case of irregularities. The employer has the obligation to provide all information requested (when possible) but is not obliged to take into account the workers' representatives' suggestions.

In Bulgaria, companies envisage redundancies only as last resort and only after having considered all possible alternative options and/or identifying and implementing supporting measures (such as phasing planned measures over time, extending or reducing working time, seeking replacement activities). The employer is obliged to consult with trade unions about such alternatives. The trade unions may submit a statement to the Employment Agency (not compulsory) related to options for future employment of the dismissed employees.

According to article 127, a collective dismissal must prompt the employer to begin consultations with the works council in a timely fashion and in the manner prescribed by the labour act, with a view to reaching an agreement aimed at avoiding redundancies or reducing the number of affected workers. The mentioned redundancies concern those employees whose employment contract is to be terminated due to business reasons and where there is an agreement between the employer and the employee, as proposed by the employer. The employer is obliged to provide the works council a written notification with all relevant information (see Selection of employees for (collective) dismissals). ​During the consultations with the works council, the employer is obliged to consider ways and means of avoiding the projected collective redundancies. The employer is also obliged to notify the public employment service of the mentioned consultations and provide information on the duration of consultations with the works council, outcomes and conclusions resulting therefrom, with a statement of the works council attached thereto, should he/she receive it. Article 128 (2) stipulates that for employees who are proclaimed as surplus, the employment relationship may not be terminated within 30 days from the date of delivery of the information to the competent public employment service (PES). The PES may instruct in written form the employer to postpone dismissal to all or individual workers for a period of a maximum 30 days, if the company can ensure continuation of the workers' employment for the extended period.

If an employer intends to proceed with collective dismissals (within 30 days, at least 10 dismissals in companies with 21-99 employees, at least 10% of workforce in companies with 100-299 employees or at least 30 dismissals in larger firms), he/she is obliged by Article 4 of the Collective Dismissals Law to enter in good time into consultations with the employees' representatives. The employer must have completed the consultations with the employees' representatives before he/she notifies the relevant authority on the intention to proceed to collective dismissals, since he/she has to provide information to the relevant authority also on the outcome of these consultations (Article 6). Collective dismissals can take effect at the earliest 30 days after the relevant authority has been notified (Article 8). These consultations should cover at least following issues:

• Possible ways and means for avoiding collective dismissals or the reduction of number of employees affected, and
• ways and means for lessening the impact of collective dismissals, by designing social measures, which should, among others, have the target of reemployment or retraining of dismissed employees.

The purpose of consultations with the trade union organisation or the works council is to reach an agreement on the measures aimed at preventing or reducing collective dismissals (within 30 days, dismissals of at least 10 workers in companies with 20-100 employees, at least 10% in companies with 101-300 employees, or at least 30 workers in companies with more than 300 workers), the mitigation of their adverse effects for employees, and the possibility of placing workers in suitable jobs at another employer’s place of work. The Labour Office may conclude an agreement with the employer concerning the acquisition, upgrading or extension of a worker’s qualifications. If employee's retraining is carried out on the basis of an agreement with the Labour Office, it can fully or partially cover the associated expenses.  If a training facility supplies the employee's retraining for an employer, an agreement is concluded among the employer, the retraining facility and the Labour Office. Retraining of employees involving the acquisition, upgrade or extension of a qualification that takes place during working hours may be regarded as an obstacle to work on the part of the employee. For this period, the employee is entitled to an average earnings refund of wages. Retraining outside working hours takes place only if necessary.

If the restructuring exercise is expected to involve redundancies on a scale falling within the scope of the Danish Act on Collective Redundancies (within 30 days, at least 10 dismissals in companies with 21-99 employees, at least 10% in companies with 100-299 employees or at least 30 dismissals in larger companies), the employer must, as soon as possible, initiate negotiations with the employees or employee representatives. The employer must  explain the main reason for the expected restructuring in a letter addressed to the employees representative, as well as to the Regional Employment Council. The negotiations must aim at preventing or reducing the expected redundancies or, if this is not possible, alleviate the consequences of the redundancies. This means that the preparation of the restructuring has to take place in a timely manner in order for the information, consultation and negotiation to be carried out in accordance with the Danish Act on Collective Redundancies and/or the Danish Act on Employees’ Rights in the event of Transfers of Undertakings and/or the Danish Act on Information and Consultation of Employees. It is important to stress that the restructuring exercise is not subject to the ‘approval’ of the employees or employee representatives.

Before termination of an employment contract due to lay-off (in case of individual as well as collective dismissal), an employer shall, where possible, offer other work to the employee. Also, where necessary, the employer shall organise the employee's on the job training or change the employee’s working conditions, unless the changes cause disproportionately high costs for the employer. Prevention of the planned termination or reduction of the number thereof and mitigation of the consequences of the terminations, including contribution to the seeking of employment by or retraining of the employees to be laid off, have to be included in consultation upon collective redundancies (within 30 days, dismissals of at least 5 employees in companies with up to 19 staff, of at least 10 in firms with 20-99 staff, of at least 10% in companies with 100-299 staff or of at least 30 in larger companies).

The labour code provides for several alternative solutions that an employer needs to consider before implementing a redundancy plan Obligation to offer training prior to redundancies According to article L. 1233-4, before a redundancy plan can be implemented, an employer is obliged to offer either individual or collective training to affected employees to ensure redeployment within the company or the group which it belongs to. If the employer fails to provide training, the employee may ask for compensation in court. Redeployment obligation If redeployment within the company or the group which it belongs to cannot be accomplished, the employer can resolve to redundancies. If the employer fails to provide redeployment where possible, the employee may ask for compensation in court. The obligation to provide redeployment opportunities is limited to establishments located in France within the company or other undertakings of the groups which the company belongs to. The employer can choose to transmit individual and personalised redeployment offers to single employees or a list of available positions within the company (or the group which it belongs to) to all affected employees Regardless of the modality, the redeployment offer must be written and specific. According to article D. 1233-2-1, it must indicate the following:

• the job position and description;
• the name of the new employer;
• the nature of the employment contract;
• the work location;
• the level of compensation;
• the classification of the job.

Each offer must specify the time limit for the employee to apply for the job. The limit cannot be less than 15 days from the publication of the offer. In case the employee does not apply for the job offers proposed within the planned time limit, she is deemed to reject the offers. These rules are applicable to dismissal procedures on economic grounds initiated since 23 December 2017. Non-compliance with these rules makes the redundancy unfair, meaning that the employee can claim compensation for damages. Collective performance agreements The collective performance agreements are an internal instrument of flexibility. It allows employers to negotiate working time arrangements, wages, terms and conditions for internal professional and geographical mobility of employees directly with trade unions (or other employee representatives at the company level), in order to meet the operational needs of the company or to safeguard and develop employment. Even if not compulsory, this instrument is in force since 1 January 2018. It covers all private companies independently of their size and it replaces the former internal mobility agreements and agreements to maintain employment. Employment protection plan According to article L. 1233-61 through L. 1233-64, an employer needs to first inform and consult with employee representatives and to then draft a Employment protection plan (Plan de sauvegarde de l'emploi). The latter can be either negotiated as a company-level agreement with trade unions or unilaterally drafted with the information and consultation of employee representatives throughout the restructuring process. The plan aims at avoiding forced dismissals and/or at reducing their numbers to a minimum. It has to include measures like internal mobility, creation of new activities by the company, external redeployment with a support scheme to help employees for business start-ups or business acquisitions, training, validation of professional experience, implementation of redeployment leave (congé de reclassement), access to the publicly-funded professional employability agreement (Contract de Sécurisation Professionnelle) that combines unemployment benefits with training and individual coaching, and measures aiming at working time reduction. In both cases, where deemed necessary, the works council may call in an outside expert of its choice, at the employer's expense, to gather advise on collective redundancies involving 10 employees or more. The law defines the role of the expert with some details in articles L. 1233-34 and L. 1233-35. According to article L. 1233-46, the employer needs to inform the labour inspectorate of its Job-saving plan at most the day following the first information meeting with employee representatives. Pursuant to article L. 1233-57, the labour inspectorate assesses the compliance with the information and consultation requirements and suggests improvements to the employment security plan, where needed. The labour inspectorate needs to approve the Job-saving plan for the latter to be considered valid. The works council may propose alternative measures to the restructuring process. In this case, the employer is obliged to provide the works council with a detailed reply on the reasons to choose their restructuring plan over the one suggested by employee representatives. Obligations of employers seeking external redeployment in case of redundancies In companies that are not insolvent, not under judicial redress and with a workforce of more than 1,000 employees, the employer is obliged to attempt to find an investor before closing an establishment that would result in collective redundancies. This obligation does not apply in case of bankruptcy. According to article L. 1233-57-14, The employer is obliged to inform potential buyers of the intention to sell the establishment by any appropriate means. If the employer fails to seek a buyer, the labour inspectorate may refuse to approve the employment security plan. The works council is informed about the business transfer offers received by the employer. Additionally, the works council might issue an opinion, participate in the search for a buyer and make proposals.

In establishments with a works council and at least 20 workers with voting rights, the employer has to comprehensively inform the works council of any planned alterations that may entail substantial disadvantages for the workers and consult the works council members on the planned alterations. The consultations should address whether the planned alterations have to take place, when they shall be implemented and how negative impacts for affected workers can be avoided. These consultations typically discuss the number of dismissals/redundancies, options of avoiding job cuts via short-time working or company-based job transfer agencies and alternative forms of work organisation and production. Works councils in establishments with more than 300 workers may hire professional consultants for support. If management and the works council can reconcile their interests in connection with the planned alterations, they lay down their interests in an agreed, binding interest agreement.  In case the planned dismissals cannot be avoided, the management and the works council go on negotiating a social compensation plan proving financial compensation for the affected workers. Any agreements have to be made in written form. In case an agreement cannot be reached, both parties may refer to the chair of the Federal Employment Agency for mediation. The mediator, however, is not allowed to take decision. 

A dismissal is defined as 'collective dismissal' when affecting:

• more than 6 employees in companies with 20 to 150 employees; or
• 5% of the workforce or 30 employees in companies with more than 150 employees.

Although there is no explicit legal obligation to consider alternatives to collective dismissals, the legislation discusses the possibility of alternatives, foreseeing that undertakings and undertakings with restricted economic activity may, instead of terminating an employment agreement, serve written notice temporarily laying-off salaried employees after they have first consulted with the employees’ legal representatives. The notification may be via a single notice posted in a conspicuous and accessible place at the undertaking. Consultation occurs at a place and time set by the employer. The relevant departments of the labour inspectorate (SEPE), the social insurance foundation (IKA) and the labour force employment organisation (OAED) must be notified by the employer in any manner of the declaration of temporary layoffs of all or part of the workforce. The employees’ representatives are considered to be the legal representatives of the union that has at least 70% of the company’s employees as members, and the majority of those being dismissed. If there is more than one union in an undertaking or establishment, without any union covering 70% of the employees and the majority of those being dismissed, the persons nominated by the boards of the unions in a joint statement to the employer shall be considered the employees’ representatives. These representatives shall be designated in proportion to the strength of the unions, provided that they cover, overall, 70% of the employees and the majority of those being dismissed. If there is no union or unions meeting the conditions exposed in the preceding paragraphs, the employees shall be represented by a committee comprising of three members in the case of undertakings with between 20 and 50 employees, and five members for undertakings or establishments with more than 50 workers. If there are no employees’ representatives in the undertaking, information and consultation take place with all the employees.

The employer, if planning to carry out collective dismissals, shall initiate consultations with the works council. Collective dismissals are defined as those affecting at least 10 workers in companies with 21-99 employees, affecting 10% of workers in companies with 100-299 employees, and at least 30 workers in companies with 300 or more employees. The employer’s obligation to consult the works council shall apply until the conclusion of an agreement, or failing this 15 days after the beginning of negotiations. In order to reach an agreement between the employer and works council, the negotiations shall, at least, cover:

• the possible ways and means of avoiding collective redundancies;
• the principles of redundancies;
• the means of mitigating the consequences; and
• the reduction of the number of employees affected.

Section 9(2) of Protection of Employment Act, as amended, imposes an obligation on an employer proposing collective redundancies to initiate consultations with employees' representatives representing the employees affected by the proposed redundancies. These consultations include: 

• the possibility of avoiding the proposed redundancies, reducing the number of employees affected by them or otherwise mitigating their consequences by recourse to accompanying social measures aimed, inter alia, at aid for redeploying or retraining employees made redundant;
• the basis on which it will be decided which particular employees will be made redundant.

Alternatives to redundancy can sometimes involve states agencies, such as IDA (Industrial Development Authority) Ireland, particularly if the proposed job losses are in a locality where the job reductions have a more severe effect on the local employment levels. Collective redundancies, for the purpose of the act, are defined as: at least 5 in an establishment normally employing more than 20 and less than 50 employees, at least 10 in an establishment normally employing at least 50 but less than 100 employees, at least 10% of the number of employees in an establishment normally employing at least 100 but less than 300 employees, and at least 30 in an establishment normally employing 300 or more employees. The obligation to consider alternatives to collective dismissal/redundancies will not be changed by forthcoming legislation, dubbed the 'Plan of Action on Collective Redundancies following Insolvency Bill 2023', which will improve rights and redress on information and consultation, but the enhanced features on employee rights will bring alternatives to collective redundancies into more focus.

Italian law does not foresee an obligation on behalf of employers to consider alternatives to collective dismissals. However, the mandatory procedure foreseen by law no. 223/1991 aims at fostering dialogue between employers, employee representatives, and public authorities. According to this procedure, companies with more than 15 employees willing to carry out a collective dismissal (i.e. at least 5 dismissals within 120 days) as a result of the termination of the activity, or the reduction or transformation of the activity or work, need to give prior notice, in writing, to the company employee representatives (Rappresentanze sindacali aziendali, RSA) and to the respective employer associations. At the request of the company employee representatives and the respective trade unions, within seven days from the receipt of the communication, a joint examination is carried out between the parties, in order to examine the causes that have contributed to determining the surplus of personnel and the possibility of a (even partial) reduction in the number of dismissals, also through solidarity contracts and flexible forms of working time management. Hence, the obligation to preventive communication aims at allowing employee representatives to verify the total or partial inevitability of the dismissals planned by the company. The joint examination can be concluded with an agreement, through which the parties can provide:

• the assignment of workers to different tasks, also in derogation from the prohibition to modify in a worse way the duties of the worker envisaged by the art. 2103 of the civil code;
• the temporary posting or command of workers to other companies.

The phase dedicated to the joint examination between the parties must be completed within 45 days from the date of receipt of the communication from the company. After this deadline, the company communicates the results of the consultation and the reasons for any negative outcome to the territory labour Iispectorates (Ispettorati Territoriali del Lavoro). When the joint examination has given a negative outcome or has not taken place because it was not requested by the trade unions, the territory labour inspectorate has the power to convene the parties for further examination and can formulate proposals for reaching an agreement. This further examination must be completed within 30 days, a term starting from the date of receipt of the communication from the company. After these two phases, lasting 75 days in total, the employer can proceed with the dismissals even without having reached an agreement.

During consultations regarding collective redundancies (within 30 days, dismissals of at least five employees in companies with 21-49 employees, at least 10 employees in companies with 50-99 employees, at least 10% in companies with 100-299 employees or at least 30 employees in larger firms) the employer and the employee representatives shall examine all the possibilities of avoiding the collective redundancy or of reducing the number of employees to be made redundant and how to alleviate the effects of such redundancy by taking social measures that create the possibility to further employ or retrain the employees made redundant.

According to the Labour code (article 207), before taking a decision on collective redundancy, the employer must inform and hold consultations with the works council. At least 7 working days before the beginning of the planned consultation, the employer must provide the works council with written information on:

• the reasons for the planned dismissal;
• the total number of employees and the number of redundancies, by category;
• the period during which the employment contracts will be terminated;
• the selection criteria for redundancy;
• the terms of employment contract termination and other relevant information.

When an enterprise, institution or organisation does not have a works council or an employee trustee implementing the functions thereof, the employer must provide the aforementioned information within the time limits established therein to the employer-level trade union as well as to the employees, either directly or at a general meeting of employees of the employer. On the basis of the information provided (within five days of receipt of the information), consultations shall be held with the works council with the aim to agree on methods and measures to be used to avoid layoffs or to reduce the number of redundancies and to mitigate the negative consequences for the dismissed employees. Consultations must be aimed at coming to an agreement between the employer and employee representatives. The employer-level trade union must be informed by the works council of the course of consultations and shall be entitled to express its opinion to the works council and the employer. The employer must hold consultations for at least 10 working days from the first day of consultation unless the works council agrees to a different term (article 207). The Labour code also stipulates (article 48) that when, due to valid economic reasons that objectively exist in a certain territory or sector of economic activity and that are recognised as such by the government, the employer is unable to provide employees with work and the collective dismissal may occur, short-time working may be established by the employer. Short-time working time is shortened by up to 50% of the employee’s standard working hours. In this case, the employee is paid a short-time work benefit in accordance with the procedure established by the Law on unemployment social insurance. According to the Law on unemployment social insurance, the amount of the short-time work benefit shall be equal to short-time work hours (up to 50% of the working time rate) in proportion to the lower unemployment benefit that would be paid to the person in accordance with Article 8 of the Law on unemployment social insurance. The amount of the unemployment benefit used to calculate the short-time work benefit may not exceed 58.18% of the gross average wage paid in the national economy in the previous quarter. The short-time work benefit can be paid for a maximum period of three months (article 18). The State Social Insurance Fund Board (Sodra) carries out the final decision regarding the employer's request for short-time work benefits.

The Labour Code provides two main policy tools to consider alternatives to collective dismissals, namely job retention plans and social plans.  Job retention plan (plan de maintien dans l'emploi) When the Conjuncture Committee (Comité de conjoncture), consisting of representatives from the government, the employers and trade unions, receives notification from a company with at least 15 employees of 5 dismissals within a three month period or eight within a six month period, they can invite social partners to negotiate on a job retention plan, which must at least cover the possibility of avoiding redundancies, mitigating their consequences, actions to assist redeployment, and financial compensations. The committee can coordinate, or allow a third party, to conduct a study to establish a job retention plan. Discussions on a job retention plan must include measures such as flexibility of working hours, voluntary part-time work, time saving credits, working time reduction in conjunction with vocational training or retraining measures. Measures to be discussed include early retirement, part-time unemployment, temporary loaning of manpower and individual guidance to help the employee secure alternative work.  With regards to implementation, the terms of the job retention plan are signed by social partners and forwarded to the Conjuncture Committee. The latter will then submit it for approval to the Minister of Labour, which will decide with the advice of the Conjuncture Committee. The social plan (plan social) Before initiating collective redundancies (dismissals of seven employees within 30 days, or 15 employees within 90 days), the employer must inform and consult its employee representatives in writing with regards to its plan to initiate a collective redundancy and preferably before the start of negotiations, or at the latest at the start of negotiations. Then the employer has to begin negotiations with employee representatives, defined as staff delegates, joint committees and trade unions if the company is bound to a collective agreement in order to establish a social plan for the individuals concerned. However, if a job retention plan has been agreed by the Ministry of Work, Employment and of the Social and Solidarity Economy in the last six months, the employer does not have to negotiate a social plan.  The negotiations must focus on the possibilities of avoiding or reducing the number of redundancies and reducing the consequences by means of internal redeployment within the company or reintegration into the job market and/or a more favourable financial compensation than established by law. Similar to the discussion on the job retention plan, the negotiation may also cover the application of the law on part-time unemployment, voluntary part-time work, reductions of working time, possible training, application of the law on temporary loans of employees, application of the law on early retirement, the duration of the plan, principles and procedures to regulate the implementation and follow-up of the plan.

In situations concerning collective redundancies Consultations shall cover ways and means of avoiding the collective redundancies (10 employees in companies with 21-99 employees, 10% of staff in companies with 100-300 employees, 30 employees in larger companies) or reducing the number of employees affected by such redundancies and mitigating the consequences. In exceptional circumstances Employers and trade union representatives may agree to different conditions of employment than those specified by law as a temporary measure to avoid redundancies. Such agreements must be approved by the Director of Industrial and Employment Relations, and this approval reviewed every 4 weeks, as is stipulated by Article 42 of the Employment and Industrial Relations Act. Past agreements involved recourses to a four day week which meant a reduction in the weekly wage.

Obligation to notify the public employment service In case of intended collective redundancies (within 30 days dismissals of at least 20 employees in one or more plants of the same company employed within one and the same region of the public employment service), the employer has to notify the relevant unions and the public employment service or the social agreement committee (if installed). The aim of the notification to the unions is consultation aiming to avoid or mitigate the restructuring plan. The public employment service will not start the procedure to issue the necessary dismissal permits if there has been no consultation with the unions (unless there is an immediate threat to the continuity of the enterprise or employment). In notifying the public employment service (UWV), the employer has to show to have considered alternatives that diminish the number of dismissals or alleviate the consequences of dismissal for employees. These alternatives have to include the possibility to provide education opportunities or placement in other companies. If the UWV does not accept the reasons or the scope of the collective dismissal, it can refuse to provide the necessary dismissal permits and thereby prevents the collective Trade unions and work councils must be consulted on the need, the size of collective dismissals, and on the social assistance measures provided for the employees to be dismissed. The term 'consultation' means that there must have actually been consultation unless these unions or councils (as specified in article 7a):

• do not respond to the written request by the employer, provided that the association has received the request at least two weeks before the date of the consultation; or
• has indicated in writing that they refrain from consultation. Consultation does not imply that agreement must also be reached. The term social assistance measures usually implies a social plan, which is drawn up by enterprises and usually supplements the sectoral or business collective labour agreement. In that social plan or prior to developing one, the employer considers possibilities for relocation and retraining.

Obligation to notify the works council All major strategic decisions with potential consequences for the employees are included by article 25 of the Works Council Act (Wet op ondernemindsraden). This article refers to the rights and obligations of enterprises towards their works councils. A key theme is the obligation to inform the works council so that the council may provide a formal reflection and advice on the proposed changes or dismissals. In the event that the council’s advice is not entirely or not followed, the enterprise must provide a formal response as to why the advice from the works council was not (fully) applied to the planned changes for the enterprise. The changes referred to in this article include both restructuring and business transfers (transfer of undertaking), but also major investments, closures and mergers and acquisitions. In case of restructuring, the employer has to consult the works council. The works council is entitled to at least one consultation meeting with the employer. In principle, a works council should be installed if there are 50 or more employees.  Furthermore, if the works council has given a negative advice on the intended dismissals after being consulted, the employer must abide by a one month waiting period before a permit for collective dismissal is given by the public employment service. A negative advice from the works council could also lead a court to invalidate any dismissals retroactively if employees contest their dismissal in the legal arena. If this happens, employees are entitled to reemployment or (additional) financial compensation.  In case of a disagreement, the employer has to postpone the decision for one month, during which the works council may go to court. If the advice is not followed by the employer, the works council can challenge the restructuring decision (and possible implementation measures already undertaken). Jurisprudence over the last 35 years shows that employers that have not taken their information and consultation duties seriously run the risk that the court rules the restructuring operation invalid. However, given sufficient care, the managerial prerogative prevails. The employer has to motivate his/her intended decision and show that he/she has considered possible alternatives. These may include, for example, a reduction in the number of dismissals, starting up new production lines, mergers, sale of the company. In the consultation process, the works council may ask about alternatives or bring up alternatives of its own. If the employer does not answer the relevant questions on alternatives, the regional court, who together with the UWV are also involved in checking plans for collective dismissals, might rule that the restructuring plan is invalid. The works council in smaller companies In smaller companies employing between 10-50 employees, the Works Council Act obliges the employer to consult the workers' representatives (which may be a works council, but not necessarily so), or the staff meeting on any decision that could lead to job loss or a significant change in the employment, labour conditions or working conditions of at least one-fourth of the persons employed in the company. Contrary to the situation with works councils, decisions cannot be challenged in court. The articles do not specify the need to present alternatives.

An employer contemplating collective redundancies (at least 10 dismissals within 30 days) shall at the earliest opportunity enter into consultations with the employees’ elected representatives with a view to reaching an agreement to avoid collective redundancies or to reduce the number of persons made redundant. The act does not specify any sanctions for the employer if consultations are not entered into, but NAV (Norwegian Labour and Welfare Administration) may decide to prolong the notice period if consultations have not started as early as the act prescribes. This regulation should allow employees to have influence over the final decision and how many employees that are affected. As a part of the consultation the employer is obliged to give the shop stewards or other representatives all relevant information including the reasons for the dismissals, number of employees that might be affected, which group(s) of employees will be affected, the timeframe of the dismissals, the criteria for deciding which employees will have to leave and so forth. A copy of this information should also be given to NAV as the public employment service, and the shop steward can bring forward their comments on the information provided to NAV directly. If redundancies cannot be avoided, efforts shall be made to mitigate their adverse effects. The consultations shall cover possible social welfare measures aimed, inter alia, at providing support for redeploying or retraining workers made redundant. In this process the employer may involve NAV as the public employment service. If the employer is considering closing down its activities or an independent part of them and this will involve collective redundancies, according to the Restructuring Act (omstillingslova), the possibility of further operations shall be discussed, including the possibility of the activities being taken over by the employees. 

In cases of collective redundancies (within 30 days, dismissals of at least 10 employees in companies with 20-99 workers, at least 10% of workforce in firms with 100-299 workers or 30 dismissals in larger companies than 300 employees) employers must provide (in writing) specific information about the planned dismissals to the company trade union or employees' representatives. This should occur in advance to enable the trade union or employees' representatives to start a consultation process and make own proposals. The consultation shall specifically cover the possibility of avoiding the collective redundancies or reducing their scale. Also employment matters shall be discussed related to such redundancies, and specifically chances of the employees planned to be made redundant to qualify for other jobs, retraining, or to secure other employment (outplacement). The employer is obliged to provide the trade union or employees' representatives with the following information (in writing):

• the reasons for the projected redundancies;
• the number of employees employed and job categories they belong to as well as the job categories of the employees to be made redundant;
• the period over which the projected redundancies are to be effected/implemented;
• the proposed criteria for the selection of the employees to be made redundant;
• the order of making the redundancies (ranking of employees to be made redundant, timing of the process);
• proposals on resolving the employment matters connected with the projected collective redundancies (such as training or other support mechanism as outplacement, psychological support etc.), and if they cover any payments, the method to be used for calculating of their amounts.

Except of the information about payments the same information should be delivered by employer to local employment office at the same time. The employer is obliged either to conclude an agreement with trade unions (within 20 days of notification) or issue a dismissals regulation after consultation with employees' representative if there is no trade union. If the employer and trade unions do not reach an agreement, the employer needs to issue a dismissals regulation. This should take into consideration the process of negotiation with trade unions.

The information and consultation process with workers’ representatives in the framework of collective dismissals shall cover alternative measures aimed at reducing the number of workers to be dismissed, namely: * suspension of the employment contracts; * work reduction; * professional retraining and reclassification; * pre-retirement and early retirement. The application of the 'professional retraining and reclassification' and the 'pre-retirement and early retirement' measures depends on the agreement of the worker. Collective dismissal is defined as the dismissal of at least two workers in micro and small companies, and at least five workers in larger companies.

If an employer contemplates to resort to collective dismissals (i.e. dismissal of at least 10 employees in companies with 21-99 workers, at least 10% of staff in companies with 100-299 workers or at least 30 employees in larger firms), the employer is under the obligation to initiate, in due time, for the purpose of reaching an agreement, consultations with the trade union or the employee representatives, as appropriate, with regard to the methods and the means by which collective redundancies can be avoided, or the number of redundancies can be diminished, the social measures that can be taken to reduce the social effects of the dismissals, such as the employer’s support for the redundant employees’ vocational requalification or retraining. The trade union or the employee representatives may, within 10 days of the receiving date of the collective dismissal notice, propose to the employer measures to avoid collective dismissals or reduce the number of redundancies. Within five days of the receiving date of the proposals made as above, the employer must respond in writing, and substantiate the decision.

According to Act No. 311/2001 Coll. of the labour code, at least one month before the start of collective dismissal, consultations with the employee representative or the affected employees need to be held with the aim of reaching an agreement. Employers should attempt to minimise redundancies, try to redeploy the affected employees within other workplaces at the organisation and reduce the negative impact of the collective redundancy (dismissals of at least 10 employees in companies with 21-99 workers, at least 10% of staff in companies with 100-299 workers, or at least 30 employees in companies with 300 or more workers, within 30 days). Then the employer has to submit in written the outcomes of consultations with the employee representatives on measures to mitigate the unfavourable impact of collective dismissal on employees to the competent employment office of the headquarters of Employment, Social Affairs and Family (ÚPSVaR). During the available time to the start of dismissals, the employment office should look for ways of employing the redundant employees elsewhere, and ways of employing the redundant employees after retraining.

The act allows the termination of any employment contract, not just in the event of collective redundancies, only as ultima ratio – the last resort. With collective redundancies (within 30 days, dismissal of at least 10 workers in companies with 21-99 employees, at least 10% in companies with 100-299 employees and at least 30 dismissals in larger firms) the employer must aim to achieve an agreement and first consult with the trade unions. The dismissal programme for redundant workers must also contain measures for limiting the number of laid-off workers as much as possible and for preventing the harmful consequences of termination of the workers’ employment relationships, whereby the employer must check the possibilities of continuation of employment under modified conditions. By trying to reach an agreement, the employer must consult with the trade union on possible measures for limiting the harmful consequences of collective dismissal. The employer must send the dismissal programme to the employment service as well as to the trade union for information. Any proposal from the employment service regarding the possible measures for preventing or limiting the termination of employment relationships should be taken into consideration. At the same time, the employer is obliged to consider any possible measures for the mitigation of harmful consequences of the termination of employment relationships. Usually, the employer can lay off workers 30 days after the submission of the dismissal programme, but this period can be prolonged to 60 days upon the employment service's request. The Trade Secrets Act stipulates that trade secrets disclosed during the obligatory consultations with the trade union, works council or labour representative are legally obtained. It is also not unlawful disclosure of trade secrets if a worker gives information to his or her representative for protecting the interests of worker(s). The exemption applies to the exercise of workers’ rights, which must follow the rules on the activities and protection of trade union representatives.

During the consultation period of a collective dismissal (within 90 days, more than 5 employees made redundant if the whole workforce is affected; at least 10 employees in companies with fewer than 100 employees; 10% of the employees in companies between 100 and 299 employees; and at least 30 employees in companies with more than 299 employees), employers and workers’ representatives discuss not only the motivating reasons of the restructuring or downsizing, but also the possibility of avoiding or reducing its effects, as well as on the necessary measures to attenuate its consequences for the affected workers. For example, management and workers' representatives can agree on measures such as the use of outplacement companies or training for the improvement of workers' employability or others measures to guarantee the future  viability of the undertaking. In undertakings with 50 or more employees, the employer must provide a social plan to the public authorities and workers’ representatives. The social plan must include: * measures intended to avoid or reduce the effects of restructuring – for instance, internal redeployment, functional or geographical mobility, substantial modifications of contractual conditions, training or retraining measures; * measures aimed at reducing the effects of restructuring on employees; * external relocation, training and retraining actions; * promotion of self-employment; * financial compensations for geographical mobility; * economic, technical, organisational and other types of measures intended to make the continuance of the undertaking and its activity possible. Companies have to carry out a special training and redeployment plan of at least 6 months implemented by means of an authorised outplacement company if the collective dismissal affects over 50 employees. 

For a termination due to redundancy to be justly caused, the employer is obliged to investigate the possibility of internal redeployment to vacant positions within the company. Under the previous law, amended in 2022, the rules stipulated that if any vacant position exists, the employer must offer it to the employee if this is reasonable. If there are no possibilities of redeployment to vacant positions, the order of priority for the redundancies is based on seniority, i.e. a last-in-first-out principle. Under the new rules, the last-in-first-out principle must also be taken into account when redeploying workers with similar tasks within the same operational unit. Workers with the shortest period of employment will be offered a position with fewer hours first. The employer is also obliged to inform the concerned trade unions. However, there is no specific obligation to consult on the alternatives to dismissals.