Corona crisis: Termination due to economic problems - is this legal?
October 17, 2022 | 30,00 EUR | answered by Alexander Lenzner
Dear lawyer,
I am reaching out to you as I am in a difficult situation and urgently need legal advice. My name is Hans Hofstetter and I have been working as an employee in a medium-sized company for five years. Due to the Corona crisis, my employer is facing severe economic problems and has announced that redundancies are inevitable.
I am very concerned about my professional future, as I need to support my family and pay off my house. I have always been loyal and dedicated to the company and now suddenly feel insecure and helpless. I wonder if it is legal for my employer to terminate my employment due to economic problems and if there are ways to prevent this or at least protect my rights.
What are the legal regulations regarding redundancies during the Corona crisis? Are there specific criteria that my employer must meet in order to terminate my employment? Are there alternatives to termination, such as short-time work or other measures that my employer could take to improve the situation?
I would greatly appreciate it if you could provide me with your legal expertise during this difficult time and show me my rights and options in this situation. Thank you in advance for your help.
Sincerely,
Hans Hofstetter
Dear Mr. Hofstetter,
I understand your concerns and fears in this difficult situation and would like to help you further. Redundancies due to the Corona crisis have unfortunately become a topic in many companies. It is important to know that your employer must comply with certain legal regulations in order to carry out a redundancy.
According to § 1 of the Dismissal Protection Act (KSchG), a redundancy can only be made for operational reasons. This means that there must be economic or organizational reasons that make a dismissal unavoidable. Your employer must be able to prove that the dismissal is necessary due to the economic problems of the company and that other measures, such as short-time work or other alternatives, are not sufficient to improve the situation.
Furthermore, your employer must adhere to the so-called Ultima-Ratio principle, which states that dismissal should be the last resort to solve economic problems. Therefore, all other possibilities must be exhausted before resorting to redundancies.
Regarding the Corona crisis, there are also special regulations that should be considered. For example, short-time work benefits have been extended to support companies and avoid redundancies. Your employer could consider whether short-time work would be an option to improve the economic situation.
It is important that in case of a redundancy, you seek legal advice from an employment lawyer to protect your rights and consider possible legal actions. You also have the option to file a protection against dismissal lawsuit at the labor court if you have doubts about the legality of the dismissal.
I hope this information helps you and I am available to discuss your specific situation in more detail. Please do not hesitate to contact me if you have any further questions.
Sincerely,
Alexander Lenzner
