Collective Dismissal: Causes, Procedures, and Employee Rights
Item 10 – Collective Dismissal
1 – Causes of Collective Redundancies: Economic, technical, organizational, or force majeure.
2 – Number of Employees Involved: In a period of 90 days, the measures concern:
- 10 or more workers in companies with fewer than 100 employees.
- 10% or more in companies with 100 to 300 employees.
- 30 or more in companies with 300 or more workers.
To count the number of redundancies, account for any species, except the end of contract, not including grounds related to the individual worker. Extinctions are void when, in successive periods of 90 days, in order to avoid the forecast received, the company conducts contract extinctions through attrition in numbers below the thresholds mentioned above, notwithstanding the fact that new cases justify such action (Fraud Act).
3 – Redundancy Procedure
The entrepreneur must have a collective dismissal approved by the labor authority, if not, it is void.
3.1 – Initiation of the Procedure:
It begins at the request of the employer but can also reach workers. The employer submits a request to the labor authority and simultaneously consults with legal representatives of workers. The content of applications includes:
- Name of the person or place of service representative
- Facts, reasons, and request to be given concrete place and date request
- Signature of the applicant or accreditation of authenticity
It also requires the following documents:
- Explanation of the causes for dismissal and documentation to show this.
- Number and categories of employees and the workers affected and the period to follow criteria.
- Companies with 50 or more employees must submit a plan of social support to mitigate the layoffs and their consequences.
3.2 – Previous Inquiries:
3.2.1 – Start of the Consultation Period:
Simultaneously with the request of the labor authorities, consultations with legal representatives of workers are initiated (written and a copy to the authority), accompanied by documentation to prove the cause and justification of the measures. The consultative period lasts no less than 30 days, or 15 days for companies with fewer than 50 employees.
3.2.2 – Development of the Consultation Period:
The parties must negotiate in good faith. The content of this period aims to avoid or reduce and mitigate impacts and consequences for workers, enabling the viability of projects. Everything discussed will be displayed in minutes.
3.2.3 – Completion of the Consultation Period:
The results are documented in a communication from the employer to the labor authority (the result of agreement or disagreement). The agreement is binding on both parties and has the force of law. The resolution time is 15 days from referral of the agreement, being approved if there is no specific resolution. In case of disagreement, there are 15 days to rule dictating resolution or refusing the request. The resolution must be reasoned and consistent with the application.
3.3 – Effect of Approval of Action:
Approval of extinction grants permission. The following apply:
- Extinction approval.
- Allowance: 20 days/year.
- Unemployment benefits: workers are placed in an unemployment situation.
- Priority retention: employee representatives have the right to remain in the company.
Other Forms of Termination of Work Activity
Mutual agreement of the parties: Very unusual, this leads to lower voluntary (or unemployment or voluntary settlement Baja,…) change of address,… requires at least a 15-day notice. Breach of notice may entitle the employer to claim 15 day wage. It does not involve the right to compensation or allowance of unemployment, but if settlement.
Retirement or disability of the worker: Retirement of the employer involves the extinction of jobs and the possibility that workers are paid 30 days salary in addition to the settlement.
Requested by the worker due to substantial changes to working conditions: Here the extinction is motivated by this and is entitled to 20 days/year with a maximum of 12 months. If the amendment regarding the qualifications, the judge may award you compensation of 45 days per year with a maximum of 42 months. Until the judge decides, the worker should remain in the job.
Breach of contract term: Temporary or contract in order to work, compensation involves eight days per year.