Notion

The dismissal for economic reasons is the one that follows, is a generalized economic conditions or the needs to restructure the company or technically reorganize the company.

Procedure Advance

The employer contemplates dismissing several staff members for economic reasons must first notify in writing the works council or, if the employee representatives to hear their opinions and suggestions on appropriate measures (Art. 70 paragraph 3 of the Labour code).

Prior notice

The dismissal was preceded by notice to give the worker to enable him to prepare his departure. But the employer can provide to give notice by granting the employee an indemnity.

The notice period can not be less than:

• one calendar month, if the worker has a service seniority of less than three years;
• 1 ½ months calendar if the worker has a service age of 3 to 5 years;
• 2 calendar months, if the worker has seniority of service 5 to 10 years;
• 3 months calendar if the worker has seniority of service over 10 years.

Criteria to be considered

Will be laid off first workers with the least skills for the jobs maintained and in case of equality of professional competence, less senior workers, seniority being increased from one year to the married worker (Article 24 collective Labour Agreement of 1980).

allowances:

• Severance pay: The dismissed worker receives severance pay. The amount of these benefits depends on the length of service and shall in no case be less than:
• For between 3 to 5 years of service: 1 times the average monthly wage increased in cash, if any, of the average monthly legal equivalent value of benefits in kind, including, potentially, the provision of housing, which the worker could claim at dismissal;
• For between 5 to 10 years of service: 2 times the amount provided in the first indent;
• For a length of more than 10 years service: 3 times the amount provided in the first indent (Article 60 of the Labour Code).
• Allowances notice: if the employer has chosen not to give notice, it will grant the dismissed worker pay in lieu of notice in an amount equal to the compensation and benefits of any kind allegedly received by the worker during the notice period has not been effectively implemented (Article 54 of the Labour code).

Relationship between the employer and the worker after dismissal:

• The worker dismissed for economic reasons retain for one year hiring priority in the company in the same job category. He is required to communicate to the employer any change in address after leaving the institution.
• In case of vacancy, the employer shall notify the applicant by registered letter sent to the last known address of the worker. The latter must report to the institution within fifteen days of the mailing date of the letter, the expiry of which it loses the right to priority hiring.