Mass layoff
If a company or business unit has more than 20 employees, the employer must inform the Federal Employment Agency (section 17 (1) KSchG) of its intention to lay off a certain number of employees within a 30-days period. • if the company (or b.u.) has up to 60 employees: whenever the employer plans to lay off 5 or more employees; • if the company (or b.u.) has between 60 and 500 employees: whenever the employer plans to lay off 10% of staff, or 25 or more employees (whichever lower); • if the company (or b.u.) more than 500 employees: whenever the employer plans to lay off 30 or more employees; As soon as the notification is served to the Federal Employment Agency, the employer may proceed with the planned layoffs (no authorisation or needed). However, note that in no case may the notice period applicable to departing employees be shorter than one month of receipt of the mass layoff notice by the Federal Employment Agency.
30 days
If the employer fails to notify the Federal Employment Agency of a mass dismissal or if the notification is incorrect, the dismissals are invalid.
Example:
Employer plans to lay off 6 employees within the coming 30-days. A mass layoff notice is filed on 2 May to the Federal Employment Agency, which receives it on 3 May. Thereupon, the employer notifies all 6 layoffs to the affected employees on 5 May. Regardless of the statutory or contractual notice period applicable to the affected employees, their termination will not become effective before 5 June. If they are entitled to a longer notice (contractual or statutory) period, such longer notice period will apply.