This Ius Laboris publication explains the processes behind economic and organisational dismissals. We address the fact that economic and organisational dismissals ultimately mean employees losing their livelihood without personal fault or responsibility and the implications of this, including levels of social protection in many jurisdictions.
In this guide, dismissal for economic or organisational reasons is described as a reduction in force, redundancy or more euphemistically as downsizing, rightsizing, delayering or rationalising. The guide outlines the circumstances in which dismissals for economic or organisational reasons occur, the process to be followed, rules on selection and the costs of headcount reduction. Also, included in this guide are the rules on large-scale dismissals, when consultation is required to manage the legal risks and likely challenges that may arise.
Individual Vs Collective Redundancies
Your company might have a footprint in many jurisdictions, which is why it’s important to understand the legislation surrounding economic and organisational dismissals across all your operations. For example, in many countries, there is a significant distinction between the rules applied to individual redundancies and collective redundancies. In this guide, we cover both the requirements for individual redundancies and the rules for large-scale redundancies. We also address the challenges surrounding redundancies and discuss what the courts have the power to rule on.
As an employer committing to making economic and organisational dismissals, you might be faced with many questions which we attempt to answer with this guide. These questions may include, but are not limited to, advice on how many people should lose their job, how to identify those who will lose their job and how to handle possible categories of employees (e.g. workplace representatives or pregnant women) who might be protected against dismissal. We also discuss whether there should be an expectation that attempts should be made to find alternative work and if an employer should establish a social plan or other measures designed to reduce the impact of termination.
- North America: Mexico - United States
- Central & South America: Argentina - Brazil - Colombia - Panama - Peru
- Western Europe: Austria - Belgium - Cyprus - Denmark - Finland - France - Germany - Greece - Ireland - Italy - Luxembourg - Netherlands - Norway - Portugal - Spain - Sweden - Switzerland - United Kingdom
- Eastern Europe: Czech Republic - Hungary - Latvia - Poland - Russia - Turkey - Ukraine
- Middle East & Asia Pacific: China - India - Israel - Japan - South Korea