Collective redundancies

Collective redundancies are dismissal are terminations of at least 20 contract of employment over a period of 90 days, which the employer for operational reasons pronounced (§ 1173a Art. 59a ff. ABGB).

In the case of a projected collective redundancy, the employer has to consult the workers' representatives in the undertaking or, if there is no such representation, the employees and inform the Office of Economic Affairs in writing. The consultation must be initiated as soon as the collecitve redundancy is projected, i.e. before the final decision, the notification to the Office of Economic Affairs and the issuing of dismissals.

The workers' representative body must be provided with all relevant information in good time, and in particular the following information must be communicated in writing:

• reasons for the projected redundancies;
• the number of categories and the criteria proposed for the selection of the workers to be made redundant;
• the number and categories for workers normaly employed;
• the period over which the projected redundancies are to be effected;
• the method for calculating any redundancy payments (social plan).

The employer or the employer shall notify the Office of National Economy of the planned mass dismissal and send a copy of this notification to the employee representative body. The notification shall contain the results of the consultation and all relevant information about the intended mass dismissal. The Office of National Economy shall seek ways to mitigate the consequences of the planned mass layoff. Planned mass layoffs shall take effect no earlier than 30 days after the Office of National Economy receives the notification, subject to any contractual or legal provisions to the contrary.