Selection order for dismissals and layoffs in detail

A dismissal plan must target positions rather than individual employees and criteria must be established to determine which employees may face dismissal.

When considering dismissal on economic grounds, the employer must divide the workforce into professional categories. These must be wider than specific positions and must group together employees who exercise similar functions, have had common training, and who may be substituted for each other after a short training period. 

The employer must then apply the criteria for the order of dismissal. These are based on a points system created within the context of the dismissal plan that takes into consideration, length of service, marital status, number of children, any disability, and professional skills.

When considering the dismissal of more than nine employees over 30 days, the organisation’s management is encouraged to negotiate the content of the professional categories and the point system described above with the representative trade unions. If these negotiations fail, the employer may set them unilaterally. The content of the points system is subject to the approval of the Labour Administration in both cases.

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Author: Capstan

Date: December 2019