Business

Collective redundancy: a necessary negotiation

Employers who intend to dismiss at least 7 employees over a period of 30 days or at least 15 employees over a period of 90 days for reasons related to the operation of the business (economic reasons, restructuring, etc.) must use a collective redundancy procedure.

In businesses with at least 15 employees and staff representatives, the business manager must initiate the collective redundancy procedure in the presence of the staff delegation. In the absence of a staff delegation, the business manager is required to first organise social elections.

Once the staff delegation and ADEM have been informed in writing, the employer can begin negotiations with the social partners for a maximum duration of 15 days:

  • if an agreement is reached, the social plan is signed and transmitted to the ADEM from where it will be forwarded to the ITM and then implemented;
  • if no agreement is reached, the case is referred to the National Conciliation Service within 3 days from the signature of the disagreement report and a joint conciliation committee will meet.

If still no agreement is reached, the employer can proceed with individual dismissals.

Each dismissal is notified to each employee:

  • by registered mail;
  • by handing the dismissal letter to the employee in person who in return must acknowledge receipt.

The business manager must comply with a minimal notice period of 75 days.

After that, the business manager has to deregister all employees made redundant from the CCSS, and where applicable, request the tax exemption for voluntary departure pay or severance pay.

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