Definition of collective dismissal (number of employees concerned):
No definition of collective dismissals.
No specific procedural requirements.
See: Art 164 MA allows for termination "because the enterprise has to be closed down due to continual losses for 2 (two) years consecutively or force majeure", (art. 164 (1) MA) and "when the closing down of the enterprise is caused neither by continual losses for 2 (two) years consecutively nor force majeure but because of rationalization" (art. 164 (3) MA).
Prior consultations with trade unions (workers' representatives):
Art. 151 (2) MA: general rule not specific to economic dismissals.
Art. 151(2) MA requires that termination be negociated.
Negociation will involve the worker's representative only if the employee belongs to a trade union. If not, the negociation will take place between the worker and employer.
Notification to the public administration:
Notification to workers' representatives:
Bi-partite negotiations between the employer and the employee are compulsory in the event the employee belongs to a trade union (art. 150 (2) MA). For non-unionized workers, the bipartite negotiation will take place between the worker and employer.
Approval by public administration or judicial bodies:
Art. 151 (3) and 152 MA require that when negotiation fails between parties, decision on the termination will be taken by the institution for the settlement of industrial relations disputes. Since the entry into force of the Act No 2/2004 [IRDSA], the old institutions for the settlement of industrial relations disputes were dismantled and replaced by new mechanisms. As a result, the administration now only acts as a mediator if the parties fail to reach an agreement on the termination. The Industrial Relations Court now sentences in last resort.
Approval by workers' representatives:
Priority rules for collective dismissals (social considerations, age, job tenure):
Employer's obligation to consider alternatives to dismissal (transfers, retraining...):
Art. 150 (1) MA stipulates that: "the employer, the worker and/or the trade union, and the government must make all efforts to prevent termination of employment".
According to the explanatory notes attached to the Manpower Act 2003, under the above mentioned article "the phrase make all effort under this subsection refers to positive activities or actions which may eventually prevent termination of employment from happening , including among others, arrangement of working time, saving measures, restructuring or reorganization of working methods, and efforts to develop the worker/labourer".
Priority rules for re-employment:
There are no specific regulations or additional requirements for collective dismissals. Therefore, notification requirements applicable to individual dismissals remain applicable.