Furloughs are a means for when work is temporarily reduced.
The effects of coronavirus in the workplace are currently significant. Employers have reacted to the spread of coronavirus almost without exception: travel, meetings and conferences have been restricted.
It is possible that merely improving instructions will not be sufficient from a business perspective, and that the employer will also need to take other measures. As revenue has declined due to coronavirus, many employers have had to consider furloughing their staff and suspending wage payments.
Corona and furlough
If an employer has to consider reducing the use of labour due to coronavirus, a means of reduction can be temporary lay-off. Dismissals solely due to coronavirus should not be undertaken, as it cannot be claimed that work is permanently decreasing solely on the basis of coronavirus.
If an employer regularly employs at least 20 employees, the employer must ensure that a decision is not made before negotiations on possible redundancies have been conducted.
In a situation similar to the coronavirus, it is possible that a layoff period of less than 90 days may be sufficient. In such cases, the statutory negotiation period is at least 14 days. However, if the employer suspects that the layoffs may continue for longer, it is advisable to consider initiating a six-week negotiation period as a precautionary measure, depending on the number of employees covered by the co-operation negotiations. This is because, during the negotiations, the parties can always agree to conclude the negotiations before the statutory negotiation period has expired, once all necessary matters have been sufficiently discussed. Therefore, it is possible for co-operation negotiations to be concluded very quickly if the parties are willing to do so.
Once negotiations on employee co-operation have been concluded, the employer can make decisions regarding lay-offs.
If there is no obligation to consult, a decision can be made immediately.
Temporary layoffs can be applied to all employees working under an open-ended employment contract for whom the grounds for temporary layoff are met. When implementing temporary layoffs, the notice periods specified by law or the applicable collective agreement must be observed.
When it comes to fixed-term employees, it should be taken into account that an employer may only lay off a fixed-term employee if they are a substitute for another employee and the employer would have the right to lay off that permanent employee.
Article drafted by the Advocate Tuula Rainto, Amos Law Firm. You can always call him free of charge on 010 299 5090. You can consult our price list Here.
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