Terminating employment is something organisations rarely want to consider, but there are occasions where operational changes make it unavoidable.
Across Europe, labour laws are designed to ensure that any such decisions are handled fairly, transparently and with respect for employees’ rights. Strict consultation obligations, notice periods and procedural requirements mean that employers must approach workforce changes thoughtfully and diligently.
Our panel of experts explores what organisations need to be aware of when navigating these complex rules and how to manage operational terminations responsibly.
Belgium: Employers have broad dismissal rights but must respect protected employees and justify terminations on request. Collective dismissals require consultation, often a social plan, and carry penalties for non-compliance.
France: Economic dismissals are tightly regulated and must be based on clear grounds such as economic difficulties or technological changes. Collective dismissals (at least 2 employees within the same 30-day period) require consultation with the Works Council. Before dismissal, the employer must hold a preliminary interview and provide all required information and documentation. At the end of the process, the employee is entitled to severance pay of at least ¼ × gross monthly salary × years of service for the first 10 years, and ⅓ for subsequent years, unless a collective agreement provides more favourable terms.
Germany: Employees with over six months’ service in operations of more than ten staff are protected from dismissal under the Protection Against Unfair Dismissal Act.
A dismissal for operational reasons occurs when ‘business needs’, such as restructuring or downsizing, permanently eliminate a position and no suitable vacancies exist elsewhere in the company. Validity also requires a social factor test, taking into account criteria like age, seniority, disability or maintenance obligations to determine which employees may be dismissed within a comparable group.
In operations with a works council and more than 20 employees, certain reorganisations require negotiating a reconciliation of interests and a social plan with the council. If statutory thresholds are met, the employer must also notify the Employment Agency of any planned mass dismissals. Before notification, the works council must be informed in writing about the reasons, number of employees affected and occupational groups involved.
Employers must consult the works council on each individual dismissal in addition to negotiating the social plan.
Finally, termination notices must be in writing and signed in wet ink; emails, scans or electronic forms are not sufficient.
Spain: Business-related dismissals must be justified on economic, technical, organisational or production grounds, with clear, verifiable evidence. Employers must follow strict procedures, including written justification, a 15-day notice and statutory severance of 20 days’ salary per year of service (capped at 12 months). Collective redundancies require formal consultation with employee representatives, with non-compliance risking null dismissal and substantial financial liability.
UK: Redundancy is a fair reason for dismissal if genuine, but employers must follow a fair process including consultation and objective selection criteria. Collective consultation applies for 20+ redundancies within 90 days, and statutory redundancy pay is due for employees with two or more years’ service.
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