What should be considered in the event of a termination due to operational reasons?
September 15, 2022 | 30,00 EUR | answered by Alexander Lenzner
Dear Employment Law Attorney,
My name is Edith Hausdorf and I have been working in the accounting department of a medium-sized company for 10 years. Recently, my employer announced that due to economic difficulties, there may be necessary company-wide layoffs. This news has left me feeling very uncertain, and I am now considering what to keep in mind in the event of a company-wide layoff.
The current situation in our company is characterized by a decrease in revenue and rising costs. Short-time work and other cost-saving measures have already been implemented, but it seems that these are not sufficient. I am therefore concerned that I may be affected by a company-wide layoff.
My worries mainly revolve around my financial security and my professional future. I wonder what the notice period would be, if I could receive a severance payment, and if I would be eligible for unemployment benefits. Furthermore, I am unsure if the company-wide layoff would be legally sound and if I could challenge it.
Could you please explain to me what to consider in the event of a company-wide layoff? What rights and obligations do I have as an employee in this situation, and what possible solutions are there to ensure my best possible protection? I would greatly appreciate your expert advice and support.
Kind regards,
Edith Hausdorf
Dear Mrs. Hausdorf,
Thank you for your inquiry and your trust in my expert advice. It is understandable that the announcement of company-related layoffs in your company is causing great uncertainty and concerns. In such situations, it is important to be well informed and to know your rights as an employee.
There are various legal aspects to consider in the case of company-related layoffs. First of all, your employer must prove that there are valid company-related reasons for the dismissal, such as economic difficulties, lack of orders, or restructuring within the company. In addition, he must consider whether internal alternatives such as further training, transfers, or reduction of working hours are possible before resorting to dismissal.
If a company-related dismissal is actually issued, you as an employee have certain rights. The notice period is determined by your employment contract, the collective agreement, or legal regulations. Typically, the notice period for a ten-year company tenure is at least four months ending at the end of a quarter.
Additionally, under certain conditions, you are entitled to a severance payment. This is usually offered to ensure financial compensation for the loss of your job. The amount of the severance payment may vary depending on your length of service, salary, and other factors.
In the event of a company-related dismissal, you are also entitled to unemployment benefits if you meet the necessary requirements. You should promptly register as a job seeker with the employment agency and submit all required documents to claim your entitlement.
If you have doubts about the legality of the company-related dismissal, you can take action against it. In many cases, it is advisable to first consult a specialized labor law attorney to assess the situation and discuss possible legal steps.
It is important that you inform yourself about your rights and options early on and seek professional advice if necessary. I am available to discuss your situation in more detail and assist you in securing your professional future.
Best regards,
Alexander Lenzner
Labor Law Attorney
