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.
105 (ArbVG); 10 and 15n (MSchG); 7 (VKG); 12 (APSG)
When selecting employees for (collective) dismissals, the employer has to take into consideration 'social hardship', that is the potential negative consequences for the worker compared to other workers, influenced, for example by the likely duration of unemployment, future lower income levels, the health situation of the worker or the tenure in the current firm.
Certain groups of employees benefit from special protection against dismissal: Apprentices, pregnant women, workers who have recently suffered a miscarriage, parents on parental leave, disabled workers, workers fulfilling their military service, works council members, contract officers in the public service sector and janitors with company housing.
The employer has to inform the works council about each planned dismissal. The works council has one week to comment on the proposal. Upon the request of employees, works council or employee representatives are entitled to appeal to the court within one week after having been notified of a (collective) dismissal and object to it (e.g. in cases were the employer did not inform the works council before dismissals, unfair dismissals on social grounds, membership in trade union etc.). Employees can also challenge the dismissal at court themselves within two weeks after after having been informed, regardless of whether the works council has objected or approved the dismissal (§105 ArbVG).
The challenge of a dismissal in cases of 'social hardship' is only possible in companies where at least 5 employees are employed constantly. If the works council has approved dismissals that qualify as socially unjustified it is not possible to appeal to the court (§105 (3), 2).
Eurofound (2015), Austria: Selection of employees for (collective) dismissals, Restructuring legislation database, Dublin, https://apps.eurofound.europa.eu/legislationdb/selection-of-employees-for-collective-dismissals/austria
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