Collective layoff begins when, within 90 days, at least 10 employees are laid off in enterprises with up to 100 employees, 15 in those with 100 to 200 employees, and 20 in those with over 200 employees, for reasons unrelated to the employee. In this case, the standard dismissal procedure is replaced by notice, consultations lasting no less than 30 days, and notification to the ministry responsible for labor.
This page shows when the obligation arises, what the notice contains, how the consultations are conducted, what the deadlines are, and how much it costs to fail to comply with the procedure.
Read also: Ending the Employment Relationship: The Complete Guide
Article 148, paragraph 1, requires that three elements be met simultaneously. The layoffs must be initiated by the employer, the reason must not be related to the employee, and the number must reach the threshold within 90 days.
| Size of the enterprise | Within 90 days |
|---|---|
| Up to 100 employees | At least 10 employees |
| Over 100 to 200 employees | At least 15 employees |
| Over 200 employees | At least 20 employees |
Collective leave does not require departures to occur simultaneously. The 90-day period is the one that goes unnoticed. It is enough that the departures fall within the same time window and the threshold is met.
Note: The reason must not be related to the employee. Reorganization, the closure of a unit, or a decline in work volume fall under this category. Departures for behavioral or competency reasons do not count toward this threshold, because they are directly related to the individual.
Read also: Withdrawal procedure for individual cases
Article 148, paragraph 2, specifies to whom the notice must be addressed and what it must contain.
The notice is delivered in writing to the trade union recognized as the employees' representative. If no such union exists, the employer notifies the employees directly by posting it conspicuously in the workplace. A copy of the notice is submitted to the ministry responsible for labor.
These are minimum elements. A notice that does not include all four does not start the consultation period.
Article 148, paragraph 3, makes consultation a mandatory phase, not a formality.
The employer conducts consultations with the representative trade union with the aim of reaching an agreement. In its absence, he gives the employees the opportunity to participate in the consultations.
The purpose of the consultations is defined. Measures to avoid or reduce layoffs and measures to mitigate their effects. The period shall be no less than 30 days from the date of notification, unless the employer itself agrees to a longer duration.
After the consultations are completed, the employer notifies the ministry responsible for labor in writing and sends a copy to the interested party. If the parties have not reached an agreement, the ministry helps them reach one within 30 days of that notification.
Article 148, paragraph 4, ends with a sentence that dispels any misunderstanding. The ministry responsible for labor cannot prohibit collective vacations. Its role is supportive, not authorizing.
This is the part where businesses most often go wrong, because the individual notice period doesn't start where you think it does.
| Phase | Deadline | Article |
|---|---|---|
| Notification to the union or posting, copy to the ministry. | At the beginning of the process | 148, point 2 |
| Recommendations | No less than 30 days from notification. | 148, point 3 |
| The ministry's notice of the conclusion of consultations | After the closing of the consultations | 148, point 4 |
| The ministry's assistance intervention when there is no agreement | Within 30 days | 148, point 4 |
| Individual Notice to Employees | After the completion of the above phases | 148, point 5 |
| Notice period by seniority | 2 weeks to 3 months | 143, point 1 |
Thus, the individual notice period begins only after the collective phase is closed. If there is no agreement and the ministry intervenes, it begins after the 30-day period referred to in paragraph 4.
Read also: Notice periods by years of service
Article 144(6) explicitly excludes the 72-hour meeting procedure for cases of collective leave. This does not mean that the employee is left without anything in writing.
The reasons are, in any event, provided in writing to the employee within the deadlines set forth in paragraph 5 of Article 148. The procedure changes, not the obligation to explain the reasons.
Article 148, paragraph 6, is one of the harshest sanctions in the entire Code for a single procedure.
| Voice | Mass | Article |
|---|---|---|
| Failure to comply with the collective procedure | Compensation of up to six months' salary | 148, point 6 |
| Notice period pay | By years of work | 143, point 1 |
| The reward for antiquity | 15 days' pay for each full year. | 145, point 2 |
| Unused vacation | Payment for remaining days | 94, point 5 |
The six-month compensation is added to the salary of the notice period or to the compensation for failing to observe that period. It is calculated for each employee, so in a 15-person layoff the amount immediately multiplies.
Read also: The Reward for Seniority and the Final Settlement
Article 148, paragraph 7, imposes an obligation that continues even after departure. The employer must give preference in rehire to employees who were laid off for reasons beyond their control if they employ persons of comparable qualifications.
In practice, this means that the list of laid-off employees must be kept and consulted before any new hires in the same positions. This is the part that gets forgotten six months later, when the business recovers.
This template has been prepared by AlProfit Consult based on Article 148, paragraph 2. It covers the initial notification, which is also sent to the ministry responsible for labor.
NOTICE OF COLLECTIVE LEAVE FROM WORK
From: company name, NUIS, address
Addressed to the representative trade union, or posted in the workplace.
Copy: the ministry responsible for labor
Date of notification
Reasons for termination from employment
Describe the economic, technological, or organizational reasons that are not related to the employees.
2. The number of employees who will be laid off
Number and positions affected.
3. The number of employees normally employed
The total number of employees of the entity.
4. Scheduled time for taking leave
The period from date to date.
In accordance with Article 148(3) of the Labor Code, we invite you to consultations aimed at avoiding or reducing layoffs and mitigating their effects. The consultations will be held for a period of no less than 30 days, beginning on the date of this notice.
Signature of the legal representative
Date and time stamp
Read also: Ready-made templates and forms for employment
The number of employees leaves the payroll at any given moment, so the threshold for Section 148 is best checked where the payroll is maintained. Monthly evidence of wages and declarations.
At least 10 employees within 90 days for enterprises with up to 100 employees, 15 for those with 100 to 200 employees, and 20 for those with over 200 employees.
No. Section 148 requires reasons unrelated to the employee, such as reorganization or a decline in work volume.
The representative trade union organization, or, in its absence, the employees themselves by means of a conspicuous posting. A copy is submitted to the ministry responsible for labor.
No less than 30 days from the date of notification, unless the employer agrees to a longer period.
No. Article 148, paragraph 4, states it explicitly. The Ministry assists in reaching the agreement, but it does not prohibit the breaks.
After the conclusion of the collective phase, and when the ministry intervenes, after the 30-day period referred to in point 4. Then the deadlines of Article 143 apply.
Compensation of up to six months' salary for each employee, in addition to the notice period pay.
Yes. The employer gives preference to laid-off workers when hiring persons with comparable qualifications, in accordance with Article 148, paragraph 7.
