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Collective redundancies

Individual termination of employment contract is governed by Polish Labour Code. Nevertheless it does not contain any provisions on collective redundancies. This institution is regulated in Polish Act on specific principles of terminating employment relationships for reasons not attributable to employees.

The term of collecive redundancies

As the name of Act suggests, the collective redundancies are conducted only upon specific reasons which are not attributable to employees, e.g. economical situation of employer or technological / organizational changes in the structure of employer. The term collective redundancy is applicable to situation in which employer terminates employment contracts with at least 20 employees during the period which not exceed 30 days, and such redundancy includes at least:

  • 10 employees if employer employs least than 100 employees,
  • 10% of employees if employer employs at least 100 but not more that 300 employees,
  • 30 employees if employer employs at least 300 or more employers.

Consultations with trade unions organizations

Employer, which is going to conduct collective redundancies, is obliged to consult such actions with trade unions organizations. This obligation is imposed in particular in order to work out the possibility of avoiding or reducing the scale of collective redundancy. The employer is obliged to notify trade union organizations about the reasons of dismissals and number of employees, which will be covered by the collective redundancy. Moreover, the employer is obliged to notify the Labour Office about the arrangements.

Special protection

It should be noted, that there is wide scope of limitations connected with termination the employment contracts or work and pay arrangements. There are several groups of employees, which are covered by special protection against collective redundancy:

  • employee in pre-retirement age,
  • pregnant employee,
  • members of employees’ councils and special negotiating teams,
  • members of trade unions,
  • workplace security inspector.

Severance payment

Each employee is entitled to severance payment after being covered by collective redundancy. The amount of such benefit depends on period of employment of such employer. The upper limit of such severance payment is 15-times of minimal wage for the day of termination.

The issue of collective redundancies always entails many emotions and anxieties. These processes always require professional legal advice. For more information please contact with our lawyers at info@dudkowiak.com

 



Michał Dudkowiak

Lawyer

Michał Dudkowiak

Barrister, Managing Partner

Michał Dudkowiak

Contact:

Rondo ONZ 1
00-124 Warsaw