💼 When the Law Is on Your Side: Legal Aspects and Employee Protection in Redundancies

However, my practice as a lawyer shows that not every dismissal is lawful.

During periods of large-scale redundancies, pressure within companies is enormous, and the dynamics of the process often lead to hasty and, in some cases, even unlawful decisions. To protect your interests, there are several critical points you should watch for:

1. Has a genuine selection process been carried out?

One of the most frequently underestimated requirements when terminating an employment contract due to the closure of part of the undertaking, as well as due to redundancy or a reduction in the volume of work, is the requirement to carry out a genuine selection process among employees in similar positions. Where the statutory prerequisites are met, the employer is required to carry out selection among employees holding identical or similar positions. If the dismissal is challenged in court, the court examines whether the selection was actually carried out and whether the assessment was based on the statutory criteria – qualifications and level of job performance.

2. Is special protection applicable?

The Labour Code provides special protection against dismissal for certain categories of employees and on certain grounds.

These include, where the statutory prerequisites are met, mothers of children up to 3 years of age, employees reassigned for health reasons, employees with certain illnesses, employees on authorised leave, as well as certain representatives of workers and employees.

In certain cases, the employer must obtain prior permission from the Labour Inspectorate or have the prior consent of the relevant body. Failure to comply with the requirement for prior protection may render the dismissal unlawful.

3. Does this amount to collective redundancies?

“Collective redundancies” is a legally defined term. Under the Labour Code, these are dismissals decided by the employer for reasons unrelated to the individual worker or employee, where within a 30-day period their number reaches certain thresholds:

• at least 10 – in undertakings employing more than 20 and fewer than 100 employees;
• at least 10% of the employees – in undertakings employing at least 100 but no more than 300 employees;
• at least 30 – in undertakings employing 300 or more employees.

If, during the relevant periods, the employer has dismissed at least 5 employees, subsequent terminations made at the employer’s initiative and for reasons unrelated to the individual employee are taken into account when determining the number of collective redundancies.

Where collective redundancies are involved, the employer has additional obligations to provide information and consultation with representatives of workers and employees, as well as to notify the Employment Agency.

4. What are you being asked to sign?

In practice, proposals to terminate an employment contract by mutual consent or in return for agreed compensation are becoming increasingly common.

Such a proposal is not necessarily disadvantageous. But it should not be signed automatically or under pressure.

Therefore, the question is not only: “How many salaries are they offering me?”, but also: “What consequences does this method of terminating my employment relationship have for me?”

Ultimately, for the business, an agreement is the lawful shortcut that saves months of administrative procedures and minimises the risk of subsequent court proceedings. The employee’s protection therefore exists only until the employee decides to waive it.

For the employee, the consequences of such a hasty decision are serious. In addition to losing the right to challenge the dismissal in court, the employee may also be restricted in their entitlement to unemployment benefit.

The cost to the employer

For the employer, an unlawful dismissal is not only a legal problem. In addition to the financial risk of having to reinstate the employee, pay court costs and/or compensation for remaining without work (up to 6 months’ remuneration), any unlawful termination of an employment contract directly affects the company’s reputation.

⚠️ What should the employee do from here?

• Do not sign anything immediately at the meeting. You have every right to take the documents home, consider them and consult a lawyer. Pressure to sign immediately is a signal that the offer is not in your interest.
• Document everything. Keep written communications, performance evaluations and proposals from the HR department.
• Observe the deadlines for challenging the dismissal. Your right to seek justice through the courts is subject to an extremely short deadline – only 2 months from the date your employment contract is terminated.

Timely legal advice can make the difference between a successful challenge and a missed opportunity. Ultimately, attention to procedures and rights is not merely bureaucracy – it is a tool for protecting the employee’s interests and, indirectly, for maintaining a high standard of workplace culture in every company.

👉 If you or your colleagues are going through a redundancy procedure, are being pressured to sign an agreement, or have doubts about the lawfulness of your dismissal, do not act hastily. Seek timely advice from a lawyer.