Mass redundancies in Switzerland: implementing the consultation procedure correctly

In economically challenging times, companies are often faced with the difficult decision to cut jobs. If there are a large number of redundancies, this is referred to as a collective redundancy - and this is clearly regulated by law in Switzerland.

When does a mass dismissal occur?

According to Art. 335d et seq. of the Swiss Code of Obligations, a collective redundancy is deemed to have occurred if a certain number of redundancies are to be announced within 30 days. The decisive factor is the size of the company:

• At least 10 employees for companies with 21-99 employees
• At least 10 % of the workforce for companies with 100-299 employees
• At least 30 employees for companies with 300 or more employees

Obligation to consult

A consultation procedure must be carried out before dismissals can be announced. The employees - or their representatives - must be informed in good time and actively involved in the process.

The aim? To find measures together to avoid redundancies or mitigate their consequences.

What companies should pay particular attention to

• Early information: Employees must be fully informed about the reasons, the number of people affected and the planned period.
• Real participation: Employees should be able to make suggestions that are seriously considered.
• Careful documentation: The entire consultation process should be properly documented - also for possible legal reviews.
• Notification to the authorities: Mass redundancies must be reported to the relevant cantonal employment office in good time.

Conclusion

The consultation process is more than just a formal obligation. It is a key instrument for assuming social responsibility, reducing legal risks and maintaining the trust of the workforce even in difficult times.

Professional support will ensure that your company manages the process in a legally compliant, fair and efficient manner. newplace accompanies companies through restructuring processes with experience and sensitivity - from the initial planning to the implementation of the consultation process.

Contact us - we will be happy to advise you.

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