What are the employer's obligations regarding change security for those aged 55 and over?

Employer's obligations for those 55 years and older in change security are broader than in a regular termination situation. Extended change security includes an obligation to inform, the arrangement of change security funds, and the enablement of re-employment leave. The obligations apply to all employers, regardless of company size, when an employee aged 55 or older is terminated for production and economic reasons.

What does security of change mean for employees over 55?

Extended change security is a special form of support for employees aged 55 and over who are terminated for production and economic reasons. It differs from ordinary termination protection by offering concrete financial benefits and services to promote the employment of the employee.

An employee is entitled to extended change security when they turn 55 on or before the date of termination and have worked for the same employer for at least five years. The employment contract must have been terminated on or after January 1, 2023, and the employee must register as a job seeker within 60 days of termination.

The significance of the age limit in labor law is based on the fact that older workers Employment is often more challenging. Extended transition security recognizes this fact and offers additional support for career continuation.

What are the employer's concrete obligations in change security?

The employer's primary duty is inform the employee regarding the transition security for those over 55 years of age. This obligation applies to all employers, regardless of company size. Notification must be made in the event of termination before the employment relationship ends.

If a company regularly employs at least 30 employees, the obligations increase significantly. The employer must offer an dismissed employee who has been in service for at least five years the opportunity to participate in employment-promoting coaching or training.

The costs of training or coaching are borne by the employer. If the employer does not provide training, they must pay the employee an amount corresponding to the value of the training. Additionally, the employer must arrange occupational healthcare for a period of six months from the end of the obligation to work.

When at least ten employees are to be made redundant, the employer must prepare an employment promotion action plan with the personnel when co-determination negotiations begin. The plan must outline the schedule and procedures for the change negotiations.

How long does the transition security last and what does it include in practice?

Expanded Change management It includes three key elements: change security allowance, change security training, and employment leave. The change security allowance is equivalent to the employee's average one month's salary, and it is paid by the unemployment benefit payer.

The value of change management training is approximately two months' salary. Participation in the training is voluntary, and the employee agrees on the training with the labor authority. The training must promote quick re-employment and enhance the employee's professional or entrepreneurial skills.

Employment leave can be 5, 15, or 25 days long depending on the employee's situation. During the leave, the employee can focus on job searching and finding a new job.

If a suitable job is not found during the transition security period, the employee will be covered by regular unemployment benefits. However, the benefits of transition security will not go to waste, but rather support the employee during the transition phase and improve their chances of finding new employment.

What are the consequences of failing to comply with change management regulations?

Failure to comply with change protection regulations can lead to significant legal consequences to the employer. If the employer does not fulfill the obligation to provide training or coaching, they must pay the employee an amount corresponding to the value of the training as compensation.

Failure to comply with the duty to inform may lead to liability for damages if the employee loses their entitlement to transition security benefits due to the employer's inadequate information. Compensation may correspond to the value of the lost benefits.

The employee has the right to bring the matter before the Labor Court or seek reconciliation with the employer. Additionally, labor protection authorities can intervene in the matter and impose sanctions on the employer for failure to meet obligations.

Non-compliance with change security regulations can also impact a company's reputation and employee relations. Proper handling of change security demonstrates the employer's responsibility and care for its personnel.

Do you need help implementing change management?

If you need expert help with change management or other HR matters, you can explore our services I contact directly. We help your company comply with change management regulations properly and support both the employer and the employee during the transition phase.