If you have more than 20 employees on a daily basis and want to lay off one of them, you should familiarize yourself with the Law on Collective Redundancies. Although its name does not imply it, it is most often of great importance for entrepreneurs saying goodbye to even one member of the workforce.
Dismissal of an employee – Labor Code or the Law on Collective Redundancies?
The dismissal of an employee is always carried out according to clearly defined rules. This is related to the protective function of labor law, which precludes arbitrariness in dismissing an employee. The basis for these issues is, of course, contained in the Labor Code. It is there that we will find regulations on the termination of various types of employment contracts, notice periods, or modes of termination.
Another act regulating this matter is the “law on collective redundancies”. – This is the colloquial name of the Act of March 13, 2003 on special principles of termination of labor relations with employees for reasons not related to employees.
It is unintuitive, yet as correct as possible, to apply this law when we want to say goodbye to a single member of an employee’s crew. How is this possible? Well, it is the colloquial name of the act that is misleading. Contrary to the term “on collective layoffs,” the act also applies to the termination of employment contracts of individual employees. It is a so-called lex specialis to the Labor Code. This means that when the Act on collective redundancies regulates a particular matter – the Labor Code does not apply in this regard.
Which companies should apply the Law on Collective Redundancies?
The Law on Collective Redundancies is only applied by employers who have at least 20 employees. So the smallest entrepreneurs only use the Labor Code and its regulations.
Secondly, the Law on Collective Redundancies is applied by those “large” employers, where the reason for termination of the employment contract in a particular case is exclusively a circumstance that does not concern the employee. This means that the termination of cooperation must have a reason on the part of the employer (e.g., it may be a general downsizing or elimination of the job of the employee being dismissed). Thus, the reason for dismissal cannot be the status or conduct of the dismissed employee (e.g., his neglect of his job duties). However, in a situation where the reason for dismissal lies with the employee – the Labor Code applies.
Importantly, the Law on Collective Redundancies applies both when the employer terminates the employment contract and when the employer enters into a termination agreement with the employee – as long as the employer is a “large” employer and the reason for the termination or agreement does not concern the employee.
What does the Law on Collective Redundancies give the employer?
First of all, the Group Dismissals Act extends the possibility of dismissing an employee or changing his or her working or pay conditions in situations where the Labor Code generally prohibits it.
By way of example, the Act allows for the possibility of changing the terms and conditions of work or pay of employees during a vacation or other excused absence from work of an employee, as well as employees subject to special protection under the provisions on group layoffs (e.g., those who are no more than 4 years short of retirement age, those who are pregnant or on maternity, parental or paternity leave). Thus, it is permissible, for example, to reduce the salary of an employee of pre-retirement age, or a pregnant employee.
However, the narrowing of the protection of the above groups of employees involves the need to grant them a compensatory allowance for the entire period when they can enjoy special protection, if a change in working or pay conditions results in a reduction in the salary of a protected employee.
Under the law, an employer may also dismiss an employee who is on leave of at least three months (under the Labor Code, he could not do so).
Severance pay for a dismissed employee
Employees laid off under the Group Layoff Act are paid severance pay by the employer, i.e. financial compensation. It is equivalent to one, two or three months’ salary, depending on the length of service of the laid-off person (which is successively up to 2 years, from 2 to 8 years and over 8 years).
To sum up…
Employers affected by the Law on Collective Redundancies gain both the right to more easily change the employment relationship with an employee and special obligations. In principle, they can more easily part ways with a protected employee or terminate his working and pay conditions. In doing so, they must not forget about the need to pay a severance or compensation allowance, and often to consult with the company’s trade union organization, if such an organization is active at the employer.
Przy wypowiadaniu umowy o pracę przez pracodawcę kluczowe znaczenie ma liczba zatrudnionych przez pracodawcę pracowników oraz przyczyna, która stanowi podstawę do rozwiązania z pracownikiem stosunku pracy.
W znacznej większości przypadków przyczyna podjęcia decyzji o zakończeniu stosunku pracy nie będzie miała znaczenia przy zawieraniu porozumienia pracownika i pracodawcy.
