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 76 and 99 of the Employment Relationship Act (ZDR-1); Articles 91-98 of the Workers Participation in Management Act (ZSDU); Articles 4 and 7 of the Trade Secrets Act
The employer is obliged to consult the works council about the company status, e.g. changes in the legal situation, the sale of the company or its major part, the closure of the company or its major part, major changes in ownership and in corporate governance. It also applies to staff issues concerning 10% or more of all company employees, e.g. the need for new employees, allocation of posts, the movement of a significant number of employees to outside the company or from one place to another, the adoption of additional pension, disability and health insurance schemes, in-company workforce reductions and the adoption of general rules of disciplinary accountability. The employer has to give the works council the necessary information at least 30 days before taking the decisions, and organise joint consultations at least 15 days before taking the decisions.
Additional information is also required in cases of collective dismissals. The works council can reject the employer's proposal to reduce the size of the workforce if it does not include a draft programme for the solution of the problem of redundancies in accordance with applicable employment regulations, or if the reasons for the decision to reduce the size of the workforce are not well-grounded. The works council has to reject the proposal within eight days after receiving the information from the employer.
The employer cannot adopt the decision if the works council rejects the proposal within eight days. If the works council does not answer within eight days or if the rejection is unfounded, it is considered as consent.
The employer also has to consult the relevant trade union representative about the proposed criteria for the determination of redundant workers and, in the framework of the elaboration of the dismissal programme for redundant workers, about the possible ways of avoiding and limiting the number of dismissals and the possible measures for the prevention and mitigation of harmful consequences. The employer must at the earliest possible time inform the trade unions at the employer about the layoffs in writing. The communication must include:
Trade unions must also be involved in cases involving a business transfer. Employers must inform and consult the labour representatives, but are not obliged to accept the proposals of either the trade unions or the works councils. However, employers must have the consent of the trade union, if they want to establish a list of redundant workers according to their criteria and not the ones set out in the collective agreement.
Workers’ right to be informed and consulted passes on to workers' representative in companies employing less than 20 workers with the active voting right. Workers’ representatives have the same rights and obligations that relate to the works council.
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 does not constitute 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.
No information available.
Eurofound (2015), Slovenia: Staff information and consultation on restructuring plans, Restructuring legislation database, Dublin, https://apps.eurofound.europa.eu/legislationdb/staff-information-and-consultation-on-restructuring-plans/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))