Definition of collective dismissal (number of employees concerned):
No statutory definition of collective dismissal for economic reasons.
Art. 49The LC foresees termination of employment with no liability on the part of either party in the following cases:
- closure of all or part of the undertaking or establishment, or final reduction of the activities, resulting from the unprofitably of the business and authorized by the competent labour judge.
- business closure caused by the exhaustion of the substance exploited by the extractive industry and authorized by the labour judge.
In addition, the LC (art. 48) provides for termination without judicial intervention in the event of:
- dissolution of the undertaking in case the business has ended, orf an undertaking
- partial or total cessation of activities following bankruptcy , when it has been decided by the Trade Union or the Board of Creditors, and considered fortuitous and not negligent.
With the exception of those reasons, economic reasons are not considered to be a good cause for dismissal. Therefore dismissal based on economic reasons will be treated as de facto dismissal "despido de hecho" and will entail payment of compensation for unjustified dismissal.
Prior consultations with trade unions (workers' representatives):
Notification to the public administration:
Notification to workers' representatives:
Approval by public administration or judicial bodies:
However, prior judicial authorization is required in the folllowing cases:
- closure of all or part of the undertaking or establishment, or final reduction of the activities, resulting from the unprofitably of the business;
- business closure caused by the exhaustion of the substance exploited by the extractive industry (art. 49 LC).
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: