What does change protection mean?

Change management This is a service package compliant with labor legislation that supports both the employer and the employee in cases of dismissals for production or economic reasons. It includes obligations for the employer and rights for the employee, aimed at easing the transition and promoting the re-employment of the dismissed person. Change security encompasses notification obligations, preparation of an action plan, organizing training, and providing occupational healthcare in defined situations.

What does change security mean in practice?

Redundancy protection is a statutory system that is activated when an employer has to lay off employees for production or economic reasons. It consists of several different elements aimed at supporting the laid-off employee and promoting their re-employment.

Change management Perimeter elements include enhanced communication, the creation of an employment promotion action plan with personnel, the creation of an employment plan in labor services, and paid leave for the redundant employee to facilitate job seeking. In addition, the system covers the organization of training or participation in its costs, as well as the provision of occupational healthcare for six months after the obligation to work ends.

Especially for employees over 55 years old, there is extended change management, which includes severance pay, retraining, and a transition leave. Severance pay is equivalent to one month's salary on average and is paid by the unemployment benefit provider. The value of retraining is approximately two months' salary, and participation in retraining is voluntary.

When does the change security apply?

Change security applies when an employer terminates employees for production or economic reasons. Applicability depends on the employer's size and the number of employees being terminated, and companies of different sizes have different obligations in implementing change security.

Practical situations where change security is activated are usually related the company's financial difficulties, for reducing production, restructuring operations, or technological changes. Change negotiations are an integral part of the process, during which the implementation of change security is addressed.

Extended change security for those aged 55 and over requires that the employee has turned 55 by the termination date, their employment contract has been terminated for production and economic reasons since the beginning of 2023, they have been employed by the same employer for at least five years, and have registered as a job seeker within 60 days of termination.

If an employer regularly employs at least 30 employees and the terminated employee's employment relationship has lasted at least five years, training or coaching must be offered. The same applies to the obligation to arrange occupational healthcare for a period of six months.

How does change management affect the operations of an SME?

For SMEs, change security brings both obligations and opportunities. The obligations scale according to the size of the company, so smaller companies have lighter requirements than larger employers. This makes the system reasonable for smaller players as well.

Change management cost-effectiveness vary significantly depending on the size of the company. Companies with fewer than 30 employees can focus primarily on information duties and cooperation with labor authorities. For larger companies, costs increase with training obligations and the organization of occupational healthcare.

Managing practical processes can be challenging for SMEs that don't have their own HR department. Properly handling change negotiations, drafting action plans, and fulfilling statutory obligations require expertise. In this Services can provide valuable support in seeing the process through.

However, change management also offers opportunities. It can facilitate difficult personnel decisions when concrete support is available for those who are laid off. In addition, the system can improve the company's reputation as a responsible employer, which is important for future recruitment.

From a business management perspective, it is essential to understand change security requirements in advance and prepare for them appropriately. When handled correctly, change security can make a difficult situation more manageable for both employers and employees.

Do you need help with change management?

Implementing change security requires a thorough understanding of statutory obligations and proper process management. If your company faces a situation where change security needs to be applied, or if you want to prepare for potential changes in advance, contact to discuss your company's situation and necessary actions with an expert.