Legal challenges when terminating employees and layoffs

Introduction

• Why is the topic important?

Termination of employees and layoffs are difficult situations for employers and employees alike. It is often an unpleasant duty for employers to fulfill in order to protect the company. For employees it often means the loss of their job and the associated uncertainty and financial losses. It is therefore important to understand the legal challenges surrounding terminations and layoffs in order to find the best possible solution for both employers and employees.

• What are the goals of the blog?

The aim of this blog is to provide an overview of the legal challenges surrounding terminations and layoffs. The reasons for termination or dismissal are explained, the legal basis is presented, the procedure for termination or dismissal is described and the risks and consequences are shown. In addition, tips are given for employers and employees to deal with termination or dismissal in the best possible way.

Reasons for termination or dismissal

• Dismissal for behavioral reasons

A dismissal for behavioral reasons can be given if the employee violates his or her employment contractual obligations. This can be the case, for example, if the employee repeatedly misses work without excuse, does not perform his job or violates the Working Hours Act.

• Personal dismissal

A dismissal for personal reasons can be given if the employee is no longer able to do their job properly due to their personal characteristics or circumstances. This may be the case, for example, if the employee is no longer able to work due to a long illness.

• Termination for operational reasons

A dismissal for operational reasons can be given if there are operational reasons that make it impossible for the employee to continue to work. This may be the case, for example, if the company has to cut jobs due to economic difficulties.

• Dismissal for other reasons

A dismissal can also occur for other reasons, for example in the event of a serious violation of labor law or an extraordinary dismissal.

Legal basis

• Labor law regulations

The legal basis for terminations and layoffs is regulated by labor law. These include, in particular, the Dismissal Protection Act, the Works Constitution Act and the Working Hours Act.

• Employment contract regulations

The legal basis can also be set out in the employment contract. These include, for example, regulations on notice periods or protection against dismissal.

• Collective agreements

Collective agreements may also contain provisions regarding terminations and layoffs.

• Operating agreements

Works agreements can also contain provisions on terminations and dismissals, in particular on consultation with the works council.

Procedure in the event of termination or dismissal

• Hearing of the works council

Before termination or dismissal can be announced, the works council must be consulted. This applies in particular to dismissals for operational reasons.

• Consultation of the employee

The employee must be heard before termination or dismissal. He has the right to comment on the reasons for the termination.

• Dismissal protection lawsuit

The employee can file a dismissal protection claim against dismissal or dismissal. The labor court checks whether the termination was legal.

• Severance agreements

Severance agreements can be made as part of a termination or layoff. The employee is paid a severance payment to avoid legal disputes.

Risks and consequences of termination or dismissal

• Dismissal protection lawsuit

If the employee files a dismissal protection claim, this can lead to a lengthy and costly procedure for the employer.

• Claims for damages

If the termination or dismissal was unlawful, the employee can claim compensation.

• Damage to reputation

Wrongful dismissals or layoffs can lead to damage to the company's reputation.

• Labor court proceedings

If employment tribunal proceedings arise, this can result in a significant expenditure of time and money for everyone involved.

Tips for employers

• Timely planning

Employers should plan terminations or layoffs in good time to ensure that the process goes as smoothly as possible.

• Communication with the employee

Employers should communicate with the affected employee and explain the reasons for termination or dismissal.

• Compliance with legal regulations

Employers should comply with legal regulations regarding terminations and layoffs in order to avoid risks and consequences.

• Avoiding discrimination

Employers should avoid discrimination and adhere to the principles of equal treatment when making terminations and dismissals.

Tips for employees

• Seek timely advice

In the event of termination or dismissal, employees should seek advice in good time to examine their legal options.

• Examination of the reasons for termination

Employees should examine the reasons for termination or dismissal and, if necessary, take action against the dismissal.

• Review of severance offers

Employees should carefully consider severance offers and negotiate if necessary.

• Examination of legal options

Employees should check their legal options and, if necessary, file a claim for protection against dismissal.