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.
Articles 101 and 103 of the Employment Relationship Act (ZDR-1); Articles 4 and 7 of the Trade Secrets Act
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.
A study on the role of HRM in crisis management (Trebše, 2006) examined alternative solutions to dismissals undertaken by the management. The examples given in the study of how the management tried to reduce the harmful consequences of dismissals were the following:
However, not all companies included in the study offered such possibilities to redundant workers.
Eurofound (2015), Slovenia: Obligation to consider alternatives to collective dismissals, Restructuring legislation database, Dublin, https://apps.eurofound.europa.eu/legislationdb/obligation-to-consider-alternatives-to-collective-dismissals/slovenia
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.
:quality(80))
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.
:quality(80))
In 2023, thousands of workers in big tech lost their jobs. Meta, Amazon, Google, Apple, Microsoft and Salesforce had been considered to offer good and secure jobs up to this point. Giants of the information and communication technology (ICT) sector, these companies are among the highest paying, with Eurostat data from 2022 indicating that workers in ICT had the second-highest median gross hourly earnings (surpassed only by earnings in the financial sector).[1] These layoffs were a shock, especially as the biggest companies had hired extensively during the COVID-19 pandemic. What happened in the two years after this redundancy wave – was that the end of the cuts or did the companies start expanding again?
:quality(80))
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.
:quality(80))