Procedure for Massive Termination of Employment Contracts

Massive termination of employment contracts for economic reasons results from the operational requirements of the company establishment or department. Depending on the terms of the contract it may concern all employees or just some of them. This situation often causes prejudice to workers: loss of employment instability and loss of job-related benefits.The procedure can be collective or individual (individual labor dispute) and comprises two phases: administrative and judicial. In practice many employees find themselves without effective recourse as decisions are often influenced in favor of the employer.Workers often rely on rumours rather than facts which weakens their position. The Labour Inspectorate may propose reconciliation but this does not guarantee a fair outcome. Faced with this it is sometimes preferable to ask for a final settlement rather than wait for an imposed dismissal.This procedure poorly understood undermines employees' rights leaving them in a precarious situation with no real protection.