An employer may only give notice to an employee for the reasons set out in the Act č. One of these reasons is the redundancy of the employee. In this article, we will focus on the basic conditions to be observed by the employer when terminating an employee on the grounds of redundancy.
In order for an employer to terminate an employee for redundancy, the following conditions must be met:
1. Employer’s decision on organisational changes
The employer must take a decision to change its tasks, technical equipment, to reduce the number of employees in order to increase the efficiency of work or to make other organisational changes, i.e. circumstances of an organisational, technical, technological, economic or other nature that affect the employer’s operations (hereinafter referred to as the “Decision“). The Decision should aim at adjusting the number and qualifications of employees to meet the employer’s current needs.
The form of the Decision is not specified, but in view of the possible need to demonstrate acceptance of the Decision, we recommend that the Decision be adopted in writing. The decision does not need to be published in any way, but the redundant employee should be informed of the decision no later than the moment he/she receives notice.
2. Redundancy of an employee
Redundancy of an employee occurs when, on the basis of the Decision, the employee’s work, which falls under the type of work agreed upon in the employment contract, is not needed in full or to the extent that it has been needed so far. If only part of the employee’s work is not needed, the employer should offer the employee a change in working conditions (e.g. part-time work). If no such change is made, the employment relationship may be terminated by notice.
The choice of the particular employee whose employment will be terminated by termination for redundancy is at the discretion of the employer. However, it may not discriminate in its selection.
3. Causal link between the Decision and the employee’s redundancy
The Decision must be the proximate and actual cause of the employee’s redundancy. This condition would not be met if the purpose of the organisational change was achieved by other means, for example, in a situation where the reduction in the number of employees doing work that is no longer needed by the employer is due to one of those employees leaving of his/her own free will. Furthermore, this condition would not be met, for example, if the Decision was not aimed at a genuine need to adjust the number or qualifications of employees, but only at getting rid of a particular employee.
In this context, we point out that the fact that the employer has recruited a new employee to fill the position vacated by the departure of the employee who was dismissed for redundancy may serve as evidence that the reason for the dismissal is unfounded.
The notice itselfmust then be in writing and state the reason for the notice so that it cannot be confused with another reason. Notice of termination on grounds of redundancy may be given only after the Decision has been issued and the employment relationship may not end earlier than the working day preceding the effective date of the organisational change. The notice of termination may not be given to the employee during the so-called protection period provided for in the Labour Code and must be duly delivered in accordance with the Labour Code.
Other conditions that may need to be met in a termination for redundancy may arise from the employer’s internal documentation or the fact that the employer has a trade union.
If you would like more information in this regard, please do not hesitate to contact us.
This article is for informational purposes only and does not constitute legal advice or guidance for any particular case.