When financial problems occur, one of the measures to stabilise the employer’s activity is to lay off (usually) a large number of employees.
In Romania there are two types of financial dismissal procedures, depending on the extent of the financial loss:
- restricted financial loss: the individual dismissal procedure for economic reasons (decrease in orders, reorganisation of the activity, termination of an important commercial contract);
- extensive financial loss: the collective dismissal procedure.
Regarding the collective dismissal, The Romanian Labour Code states:
(1) The collective dismissal procedure means the dismissal, within a period of 30 calendar days, for one or more reasons unrelated to the employee, of a number of:
(a) at least 10 employees, if the employer has 20 to 100 employees;
(b) at least 10% of the employees, if the employer has 100 to 300 employees;
(c) at least 30 employees, if the employer has 300+ employees.
(2) In determining the actual number of employees collectively dismissed in accordance with paragraph (1), the following shall be taken into account: employees whose individual employment contracts have been terminated at the initiative of the employer for one or more reasons unrelated to the person of the employee, provided that there are at least five.“
The collective dismissal procedure is more complex (but in most cases necessary), the Labour Autorities being directly involved.
For advice, preparation and verification of the documents required for the procedures mentioned above, the Saucă&Partners team can provide the full legal support. Don’t hesitate to contact us.
