What are the employer's obligations in change management?

An employer's obligations in change security are based on the Employment Contracts Act and cover a wide range of measures in dismissal situations. Change management obligates the employer to support a laid-off employee in finding new employment by offering training, occupational healthcare, and outplacement leave. The scope of these obligations depends on the size of the company and the number of employees being laid off.

What does change security mean, and why does it concern all employers?

Transition security is a statutory system that obligates employers to support employees laid off for production and economic reasons. All employers are required to comply with the basic obligations of transition security, regardless of the company's size.

The goal of a transition security program is to facilitate the laid-off employee's move to a new job and shorten the duration of unemployment. The employer must inform the employee his rights to severance pay already at the termination stage. This obligation applies to every termination situation where the reason is economic or production-related factors.

The transition security includes enhanced communication, the development of an employment promotion plan, and the right for dismissed employees to paid time off for job searching. Additionally, employees aged 55 and over are offered extended transition security, which includes a transition security payment and training opportunities.

When must an employer initiate co-determination negotiations in a change situation?

Works council negotiations must be initiated before termination decisions when an employer is considering terminations for production or economic reasons. The duty to negotiate arises regardless of the number of people to be terminated, but the scope of the procedure varies according to the size of the company.

In a company that regularly employs at least 50 people, it is mandatory to organize cooperation procedure before making dismissal decisions. In smaller companies, consulting with staff is sufficient, but this should also be done before final decisions are made.

During YT negotiations, arrangements for change security must be addressed, and an employment promotion action plan must be drawn up if at least ten employees are to be laid off. Negotiations must be factual, and personnel must be given sufficient time to influence decisions. An expert Services can help ensure that co-determination negotiations are carried out in accordance with the law.

What are the employer's key responsibilities in a termination situation?

The employer must carefully investigate the grounds for termination and comply with the re-employment obligation before making a termination decision. Additionally, it must be ensured that the notice periods are determined correctly and that the employee receives the necessary information about transition security services.

Before terminating employment, the employer must ascertain if there is other suitable work available within the company for the employee being terminated. Relocation obligation This also applies to companies belonging to the same group. If suitable work is not available, it must be carefully documented.

During the notice period, the employer must offer the employee the opportunity to participate in job seeking and training. The dismissed employee must be granted a reasonable amount of paid leave to arrange job seeking. The employer must also notify the employment authorities of dismissals and assist the employee in applying for outplacement services.

How can an employer ensure that change management is properly implemented?

Proper implementation of change management requires careful process design, documentation, and collaboration with personnel. The employer must ensure that all statutory obligations are met in the correct order and within deadlines.

The key is document all actions carefully, from the start of co-determination negotiations to post-termination obligations. Information to personnel must be open and regular throughout the entire process. Employees must be clearly informed of their rights and the support services available.

Employers should collaborate with labor authorities at an early stage. Change security experts can help with the planning and implementation of the process. Additionally, it is important to ensure that the company's internal processes support meeting the requirements of change security.

To minimize risks, the employer should ensure all deadlines are met and obligations are fulfilled in their entirety. A skilled HR professional can assist with managing the process and ensure that change security is implemented in accordance with legal requirements. Careful preparation and timely action protect both employees and the employer in a change situation.

Do you need help implementing change management?

Complying with change security requirements can be challenging and requires in-depth knowledge of labor law. If your company is facing a change situation or you want to ensure that your change security processes are in order, contact our experts. We help you implement change management properly and ensure that all legal obligations are met.