July 2023 - Recent economic and regulatory
trends such as high inflation rates and the need to transition to a
green economy have pressured employers to consider cost cutting
measures. Organisations have various responses with many taking
steps to reduce labour costs and/or reallocate resources which may
lead to recruitment freezes or even redundancies. These measures
come with their legal risks which are greater in some jurisdictions
over others.
Although EU legislation sets certain minimum standards for
termination of employment and mass lay-offs across all EU Member
States, local rules vary widely in terms of timing, costs, employee
protection, and litigation risks. In some cases, upskilling or
reskilling of employees could be an alternative to lay-offs and
could prove to be a better option for adapting the workforce to the
new landscape. However, certain legal requirements need to be
considered in training contracts which also vary across
jurisdictions.
