Lay offs

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When the enterprise is not able to employ the employee in a financially sound way, and the situation is of a temporary nature, the employee may be laid off for a period of time. Lay-off means that the employee is released from his/her job and that the employer shall only pay wages for a short period of time. The terms for laying-off employees are not statutory, but included in the Basic Agreement. The rules also apply to enterprises that are not bound by the Basic Agreement.

In this guide the rules relating to lay-off are reviewed step by step.

  • First step: Am I allowed to lay off anyone at all
  • Second step: Find out who must be laid off
  • Third step: For how long may the lay-off last and what opportunities exist for partial lay-off.
  • Fourth step: Consult the elected representatives
  • Fifth step: Send out notice
  • Sixth step: This is what you have to pay

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