Layoffs – some basics
A layoff means that the employer has decided to temporarily suspend working and payment of wages. The employment relationship otherwise remains valid.
An employee can be laid off if the employer has either an economic or production-related reason for laying off in accordance with the law or if the work or the criteria for offering work are temporarily reduced, for an estimated maximum of 90 days.
An employee can be laid off either for a fixed period or until further notice. Working can be suspended completely or by shortening working time.
Co-operation consultations must be conducted before layoffs in companies with over 20 employees. Small employers also have a duty of prior consultation.
A layoff notice must be issued no later than 14 days before the start of the layoff.
An employee on a fixed-term contract can only be laid off if the person they are replacing might be laid off.
The end of a layoff must be notified 7 days in advance. A fixed-term layoff ends on the notified date.
Employees’ representatives have the same protection as when giving notice of termination.