Media Corner

Is there a compensation for laid off employees?

For companies with more than 250 employees who plan to lay off 30 or more employees within 30 days the management is obliged by art. 335i CO to negotiate a social plan with the trade union if a collective labor agreement (CLA) exists.

If no CLA exists, it must negotiate with the employee representation committee or in the absence of one, the affected staff. However, the trade union can offer support for the employees even without a CLA and with a mandate negociate a social plan with the employer.

The social plan contains measures to avoid layoffs or to reduce their numbers and mitigate their effects. Typical elements can include financial severance packages, outplacement services or early retirement packages for older employees (see art. 335h CO).

If no agreement is found at the negotiation table, the court of arbitration will issue one by court order after hearing both sides (see art. 335j CO).

What can syndicom do?

As your trade union, syndicom can assist you and your colleagues in many ways:

• If there is a collective employment agreement (CEA) in place, we can formally negotiate the conditions of the layoff. Otherwise, this is the duty of the employee representation committee.
• Our members get legal advice and, after a waiting period of 3 months – get a legal representative. For example, if a dismissal is abusive or invalid, or if the layoff process was not properly followed, we will represent our members interests.
• We will assist with and help organize affected employees to fight against layoffs if you and your colleagues want this.