Definition of collective dismissal (number of employees concerned):
1) 10 employees out of a total of 20 to 99 employees, over a period of 30 days
2) 10% of employees out of a total of 100 to 299 employees, over a period of 30 days;
3) 30 employees out of at least 300 employees, over a period of 30 days;
Supplementary provisions, § 1 (9) LC.
[Note that prior to the 2006 amendments, this definition also included the dismissal for economic reasons of "at least 20 workers regardless of the total number of workers and employees over a period of 90 days. This was deleted from the LC in 2006]
Prior consultations with trade unions (workers' representatives):
Notification to the public administration:
Art. 24 of the Employment Promotion Act
Notification to workers' representatives:
Approval by public administration or judicial bodies:
No approval by the admnistration required as such for collective dismissals.
However, pursuant to Art. 25 of the Employment Promotion Act, in the course of the negotiation process, a team of representatives of the workers, the employer and the administration shall draft measures aimed at avoiding or mitigating the effects of the propose redundancy (employment placement, vocational training, alternative employment programmes). The draft shall then be submitted for approval to the Regional Employment Commission.
Approval by workers' representatives:
Except when approval is foreseen under a collective agreement in dismissals due to staff cut or reduction of the volume of work: art. 333 (3) LC.
Priority rules for collective dismissals (social considerations, age, job tenure):
No selection criteria listed.
Art. 130a LC only refers to criteria as one of the elements to be communicated to the workers' representatives for consultation.
Note: Art. 329 LC provides that in case of partial closing down of an enterprise, in case of staff cuts or reduction of the volume of work, the employer shall be entitled to selection and in the interest of production, business may dismiss employees whose positions have not been made redundant, in order to retain employees of higher qualifications and better performance.
Employer's obligation to consider alternatives to dismissal (transfers, retraining...):
Art. 25 of the Employment Promotion Act.
This article refers to measures aiming at "employment placement intermediation, training for attainment of vocational qualification, alternative employment programmes" that have to be drafted by a team of representatives of the workers, the employer and the administration and to be submitted for approval to the Regional Employment Commission.
Priority rules for re-employment: