Strategic support for workforce reductions
A workforce reduction requires careful planning that combines economic objectives, timelines and legal obligations. In addition to individual employment law issues, the participation rights of the works council and notification obligations towards the Federal Employment Agency must be observed. We support you from the initial concept through to implementation.
The key points at a glance
Operational change
A substantial workforce reduction may constitute an operational change within the meaning of § 111 BetrVG. The employer must then inform the works council in good time and negotiate a reconciliation of interests with it. In addition, a social plan may be enforceable. If the employer deviates from a reconciliation of interests without compelling reason or fails to attempt one, claims for compensation for disadvantages under § 113 BetrVG may arise.
Notification of collective redundancies
If dismissals of the scale specified in § 17 KSchG are made within 30 calendar days, a consultation procedure must first be conducted with the works council and a notification filed with the Federal Employment Agency. Errors in this procedure can have serious consequences for the validity of the dismissals.
Social selection
In the case of redundancy dismissals, length of service, age, maintenance obligations and any severe disability must be taken into account under § 1 Abs. 3 KSchG. Selection guidelines and a list of names in the reconciliation of interests can limit judicial review.
Alternative instruments
In addition to dismissals, voluntary programmes, termination agreements, partial retirement or transfer to a transfer company may be considered. These instruments are treated differently for social security and tax purposes.
How we proceed
Together with you, we develop a concept that sets out the planned measures, the units affected and a realistic timetable, including all deadlines.
We conduct or support the negotiations with the works council and prepare the consultation procedure and the notification of collective redundancies. Where necessary, we represent you before the conciliation board.
We assist with social selection, consultations and letters of dismissal as well as termination agreements, and represent you in subsequent court proceedings.
Frequently asked questions
When must the works council be involved?
The works council must be informed before planning is completed and measures are implemented. Dismissals should only be given once the reconciliation of interests procedure has been exhausted.
Is a social plan always mandatory?
Not in every case. Where there is a pure workforce reduction, enforceability under § 112a BetrVG depends on certain thresholds. Exceptions apply to newly established companies.
Your contacts
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Gewürzmühlstraße 5 · 80538 Munich