Page 214 - Socially-responsible-restructuring-Effective-strategies-for-supporting-redundant-workers

Socially responsible restructuring
Effective strategies for supporting redundant workers

where 100-299 are employed; for more than 20 years
At least 30 employees where service.
300 or more are employed. Average earnings are based
Notification must be made at on the employee’s previous
least 60 days before the 6 months earnings.
proposed redundancies are Collective agreements that
due to take place. enhance these basic
requirements.

Austria
Definitions Notification Consultation Statutory payments
Collective redundancies The employer must notify the The works council has to be A new scheme was
are defined as a situation works council in the first informed and consulted on introduced whereby the
where an employer plans instance, allowing 5 days for a all job losses and can make employer contributes
to reduce the workforce response before proceeding representation to try and regularly to a fund
by a significant number further. The local office of the reverse or reduce the amounting to 1.53% of
within a 30-day period. PES must be notified where: proposed job losses. In the salary. In case of
At least 5 employees are case of large-scale redundancy the employee
affected in an establishment redundancies, the works can claim directly from the
with 20-100; council has the right to fund where there is at least
At least 5% of employees in an request the suspension of 3 years of service
establishment of more then the proposed job losses for completed. However, claims
100 but less than 600; up to to 4 weeks and on the fund can be made by
At least 30 employees in an demand the drawing up of a those losing their jobs for
establishment with more than social plan to help soften the any reason (including
600 employees; effects on employees. voluntary quits). Prior to
At least 5 employees of 40 2003 the scheme was based
years old or more in any on years of service from 3 to
establishment. 4 years receiving 2 months
severance pay, to those with
more than 25 years service
receiving 12 months pay.
Collective bargaining
agreements may enhance
these basic benefits

Portugal

Definitions Notification Consultation Statutory payments
Collective dismissals are Employers planning collective Employers planning Employees being made
covered by the Labour redundancies must notify collective redundancies redundant are entitled to
Code and apply to employee representatives such must notify employee statutory redundancy
employers with more than as a works council or trade representatives such as a payments equivalent to one
50 employees where at union along with all the works council or trade union month’s basic salary (plus
least 5 redundancies are relevant information on the along with all the relevant any seniority payments
planned within a 3-month reasons and proposed timing, information on the reasons applicable) for each
period. etc. – all at least 60 days prior and proposed timing, etc. – completed period of service
to the planned date of all at least 60 days prior to (including parts of a year
termination. the planned date of which are paid pro rata).
termination. This basic requirement may
be enhanced through the
provisions of any collective
agreements or special
arrangements arising from
the negotiations for the
redundancies.

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