Layoffs are seen as the last resort for entrepreneurs who must balance business losses and ensure the survival of the entire company, and thus other jobs not covered by the layoff program.
The reasons for layoffs can not only be the financial problems of the company, but also the inability to perform employee duties due to nationwide quarantine restrictions.
Layoffs can mean temporal, partial, or full release from the obligation to perform work. In case of temporary layoff, the duty to pay remuneration as well as the worker’s obligation to perform work is suspended for a limited time, specified in the layoff notice.
Regarding sick leave due to sickness, the employee is fully entitled to sick leave and sick benefits (this also applies when an employee has been ordered to self-quarantine by the authorities). The employer is obliged to pay sick pay during this the sick leave or quarantine period – when the layoff period starts, the NAV is obliged to pay.
First of all, the layoffs should be performed with maintaining the highest standards of empathy and understanding for the situation in which employees find themselves.
Before deciding about the layoffs or permanent reduction of the company’s workforce, make sure to remember to thoroughly consider the following aspects:
Remember that if you are about to lay off 10 employees, you must notify NAV.
Coronavirus pandemic may provide undisputed reasons for the layoffs. Such concrete reasons may be:
The governmental special provisions during the pandemic emergency state often affect the entrepreneurs financially due to the lower or nonexistent trade ratios and revenues, but also physically, when, for example, the given workplaces are shut down nationwide with the help of temporary Act.
The layoff decision must be grounded in important reasons and presented to the employee in a form of official notice. Due to the corona situation, the employer will only pay wages for two days after you have laid-off employees (after the notice period).
Generally, the employee must be notified about the layoff within 14 days in advance, before the reduction applies. However, in certain situations the notice can be delivered within two working days.
The layoff notice must contain the following information: