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Collective dismissals

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Collective-dismissalsThe union procedure

Pursuant to Art. 24 of Law no. 223/1991, a mandatory procedure must be started whenever an employer staffed with more than 15 employees intends to dismiss 5 or more employees in the same business unit, within a ti- meframe of 120 days, due to a reduction/reorganization/closure of the company's business.
The collective dismissal applies to all employees, including executives.
The procedure begins with the employer submitting a written notice to the works councils (if any) or to the Trade Unions to inform them of its intention to carry out a collective dismissal.

The notice must include the following information:
•the reasons for the collective dismissal;
•the technical, organizational and productive circumstances for which such dismissal cannot be avoi- ded;
•the number of concerned employees, their duties and characteristics;
•the date on which the dismissal shall be implemented;
•the measures, if any, that will be taken in order to reduce the social impact of the dismissal.

Note that the same collective dismissal, employers may face different outcomes, depending on the date the employee has been hired.

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