There are two reasons the employer may use to terminate employment; reasons stemming from the employee’s personally or from lack of work. Upon termination for reasons of redundancy, the Transition Agreement entitles you to an extended period of notice. There is no equivalent as concerns termination due to personal reasons and if the situation is serious enough to lead to dismissal, there is no notice period at all.
The most common reason that employment is terminated is that the employer refers to a shortage of work. Redundancy is a legal term and includes all the reasons not attributable to the employee personally. Consequently an actual shortage of work is not necessary for the employer to cite redundancy. Read more about shortage of work.
It is rare, but it does happen that employment is terminated with reference to personal reasons. Personal reasons include all the reasons that arise due to the individual employee: cooperation problems, negligence and more. Decisions on dismissal for personal reasons should be preceded by decisions in the Disciplinary Board for those who are government employees (State Disciplinary Board in some cases).
The state Transition Agreement covers employees who are made redundant and have been employed for at least one year, but not anyone who resigns or is terminated due to personal reasons. Learn more about the Transition Agreement.
The employer’s right to manage and distribute work
The employer is entitled to manage and distribute work, which also means that the employer has the right to choose how to organise operations and which operations to focus on in the future.
The employer must show just cause – a multistep process
For a position to be terminated due to redundancy, the employer must be able to demonstrate that there is a factual basis. This is done by the employer presenting relevant material to the unions proving that all requirements have been met.
- Shortage of work does exist, including measures that have been taken to avoid redundancy.
- Last in first out order for relevant employees (in the state based on essentially comparable functions)
- Redeployment study (the employer shows that it has fulfilled its obligation to examine redeployment opportunities).
The process involves multiple negotiations between employers and unions. For more information on the different steps in the process, please contact your local union representative.
Involved in a possible redundancy situation?
When the employer initiates a reorganisation that could lead to possible redundancies, questions and concerns often arise. Contact your local representative for information.