Definition of collective dismissal (number of employees concerned):
No statutory definition of collective dismissal for economic reasons.
However, article 85 LC states that it is possible to terminate an employment contracts: force majeure or fortuitous case; insolvency, bankruptcy or judicial or extrajudicial liquidation of the company; or the incapacity or death of the employer. This rule applies when the events described above produce as a necessary consequence, the absolute impossibility of fulfilling the employment contract.
In these cases, the General Labour Inspectorate, or the Labour and Social Welfare Courts, if litigation has already arisen, must discretionary graduate the amount of the company's obligations as regards for dismissal, if litigation has already arisen, that must discretely graduate the amount of the company's obligations as regards for dismissal, considering the parameters set out by articles 82, 83, 84 and 85 of Labour Code, without in any case these being less than amount of two days of salary, or greater than four months of salary, for each worker. For this purpose, the economic capacity of the respective company must be taken into account, in harmony with the time that each contract is in force.
However, greater compensation may be imposed in favour of workers in the event that the insolvency or bankruptcy of the company has been caused in a guilty or fraudulent manner by the employer.
Prior consultations with trade unions (workers' representatives):
Notification to the public administration:
Notification to workers' representatives:
Approval by public administration or judicial bodies:
As previously described, when the work contract is terminated without a cause due to insolvency, bankruptcy or partial or extrajudicial liquidation of the company; it is the General Labour Inspectorate, or the Labour and Social Welfare Courts, if litigation has already arisen, that must discretely graduate the amount of the company's obligations as regards for dismissal, considering the parameters set out bu articles 82, 83, 84 and 85 of Labour Code.
Approval by workers' representatives:
Priority rules for collective dismissals (social considerations, age, job tenure):
Employer's obligation to consider alternatives to dismissal (transfers, retraining...):
Priority rules for re-employment:
There is no statutory rule in relation to re-employment after economic reasons dismissals.
However, in accordance with article 13 Labour Code, it is forbidden employing less than ninety percent of Guatemalan workers and paying them less than eighty-five percent of the total wages accrued in their respective companies, except as established in particular by special laws and also according to the exclusions established in the article itself.