NATIONAL LABOUR MARKET POLICIES
Basic Information Reports
2.4.2.Early warning system
Under the terms of the Labour Market Promotion Act, enterprises are obliged to notify the regional offices of the AMS in good time when large-scale manpower reductions are proposed; the AMS is thus in a position to consult with the management of the enterprise, the works council and the competent representative bodies for employers and employees with regard to measures towards preventing termination of employment contracts or dismissals; the AMS may provide appropriate schemes and subsidies to this end, e.g. in-plant training or short-time work.
If the negotiations fail to achieve the goal of job retention, efforts are pursued to reintegrate the redundant workers into the labour market as quickly as possible by means of counselling, placement and measures which facilitate placement. Older workers are a priority target for reintegration efforts.
The AMS must be notified at least 30 days prior to termination of employment relationships if the lay-offs affect at least
- five employees in companies with a staff of between 20 and 100;
- 5% of the workforce in companies with up to 600 employees;
- 30 employees in companies with a staff of over 600.
Proposed dismissal of five or more employees aged over 50 years must be reported, regardless of the size of the workforce.
Dismissals which are carried out before they have been reported to the AMS or before the period of notification of 30 days has expired have no legal effect; however, the Land director may approve lay-offs after consultation with the Land Directorate because, for example, the dismissals are justified on economic grounds or because notification of the AMS within the stipulated period would have been an impossible or unreasonable demand.
| 
