1E9Ct5D

vSpecial Provisions relating to Plant Closures, Cutbacks etcThere is no legally defined concept of plant closure or cutback. However, there is somestatutory regulation relating to closures and cutbacks of larger business concerns as follows:aStatutory RequirementsPrior Approval of Government Employment OfficeAn employer must notify the relevant government employment office(Arbeitsmarktservice) in writing by completion of a specific form not less than 30calendar days before if, within a 30-day period(i)(ii)(iii)(iv)in businesses with 21–100 employees, the employer intends to terminate five ormore employees;in businesses with 100–600 employees, the employer intends to reduce thenumber of employees by at least 5 per cent;in businesses with more than 600 employees, the employer intends to reduce thenumber of employees by at least 30; andin any businesses, the employer intends to terminate five or more employeesabove 50 years of age.If notice of the intended reduction is not given at least 30 days before giving notice tothe employees then any such notice to employees is ineffective.Consultation with Workers’ CouncilAn employer must inform the workers’ council of any limitation or shutdown of thewhole or a part of the business operations (as well as other significant changes to thebusiness operations). The notification must be given with sufficient time to allow theworkers’ council to give their opinion on the measures contemplated. The workers’council may make suggestions to prevent, add or reduce any consequences of themeasures undertaken which are disadvantageous to the employees.If there are considerable disadvantages for all or most of the employees in businesseswhere there is an average of at least 20 employees, then measures may be fixed inorder to prevent, avoid or reduce these consequences. In case of dispute concerningsuch measures between the employer and the workers’ council, an application may bemade to a statutory arbitration board for resolution of the dispute. (Article 109, WorkersConstitution Act).b Special PaymentsThere are no special payments to be made to employees made redundant as a result ofplant closure or cutback. The payments due are those accorded to all employees upontermination of the employment relationship, including severance payments, whereapplicable, in accordance with the statutory provisions, collective agreements and theemployment contract.cOther Rights of a Redundant EmployeeWith the exception mentioned above, there is generally no right for an employee toobject to his or her dismissal provided the employer has otherwise complied with hisobligations upon termination and the employer is not breaching the terms of thecontract by terminating, e.g. by giving notice on a fixed term contract which does nothave provision for early termination.The employee’s only right to complain is if he or she is in any way not treated equallywith regard to the termination or if an employee is terminated for an implicit reason. An- 56 -