Definition of collective dismissal (number of employees concerned):
Dismissal on the grounds of force majeure, economic or technological reasons concerning:
- more than 15% of workers in undertakings employing less than 400 workers;
- more than 10% of workers in undertakings employing between 400 and 1000 workers;
- more than 5% of workers in undertakings employing more than 1000 workers.
Art. 98 NEL: threshold for the application of the crisis prevention procedure.
If such threshold is not reached, the crisis prevention procedure is not compulsory. Dismissals on economic grounds or shortage or reduction of workforce that affect totally or partially the personnel (As observed in article 247 LCT) must follow, however, National Decree 328/88 which develops article 247 LCT.
This relation between the crisis prevention procedure (art 98-105 NEL) and Decree 328/88 can be found in article 4 Decree 265/2002 on Enterprises in Crisis.
Prior consultations with trade unions (workers' representatives):
Notification to the public administration:
Art. 99, 100 NEL.
Art. 1 Decree 328/88
Notification to workers' representatives:
Art. 99, 100, 101 NEL.
Article 3 Decree 328/88
Approval by public administration or judicial bodies:
Art. 103 NEL: If the parties reach an agreement, they will notify the Ministry of Labour, who shall in turn within 10 days, either authorise ("homologar") the agreement or reject ("rechazar") it.
If the Administration does not make a decision within 10 days, the agreement will be considered authorised.
Approval by workers' representatives:
Priority rules for collective dismissals (social considerations, age, job tenure):
Art 247 LCL: Where a dismissal is ordered for reasons of force majeure or on account of a shortage or reduction of work that is duly proved to be beyond the employer's control, the first workers to be dismissed will be those with the shortest length of service.
With regards employees that joined the enterprise during the same semester, those with less family obligations will be dismissed before, even if that alters the job tenure order.
Art. 51 Ley de Asociaciones Sindicales: Worker's representatives enjoying employment permanence Will not be able to invoke this protection in cases of general suspension or ceasing of the Enterprise activities. In those cases where there is no general suspension of activities, but staff reduction by way of suspensions and dismissals in which the job tenure order shall be observed, workers enjoying employment permanence protection as established in the present law will be excluded from this order.
Employer's obligation to consider alternatives to dismissal (transfers, retraining...):
Priority rules for re-employment: