Redundancies / mass redundancies
Dissolution of a company often also means a change or relocation of existing positions of employment. If these are lost entirely, then under certain circumstances employees will need to be made redundant.
If compulsory redundancies of 20 employment relationships or more are issued within 90 days, this is deemed to constitute a mass redundancy in Liechtenstein. In this event, particular provisions must be adhered to.
Internal information
As soon as a company is forced to dismiss at least 20 of its employees, although before the definitive decision has been taken, employee representatives must be informed without delay about the planned mass redundancy. Before the first termination is issued, further measures will be jointly discussed with employee representatives. If no employee representation exists, this consultation shall be conducted with the employees directly.
What information is required?
The employer must make all relevant information available to the employee representatives in good time, and must in particular provide the following information in writing:
- What reasons led to the planned mass redundancy?
- How many employees are affected?
- Which category do these belong to, and what are the reasons for their selection?
- How many employees are as a rule employed by the company?
- Over what period of time are the mass redundancies planned?
- What redundancy programme or proceedings exist to determine the compensation?
External information
Once this has been done, the Office of Economic Affairs must be informed in writing about the planned mass redundancy. This information must contain all relevant details about the planned mass redundancy, as well as the results of the consultation with the employee representatives. A copy of this information shall be forwarded to the employee representatives. An employment relationship that is terminated within the context of a mass redundancy shall, as a rule, end at the earliest 30 days after the Office of Economic Affairs has been informed.
Relevant laws (German only)
General Civil Code (Allgemeines bürgerliches Gesetzbuch (ABGB)) (§ 1173a Art. 59a et seq. ABGB)