Violation of the group dismissals procedure does not always mean that the terminations will be unlawful. | PRO HR September 2023

2023.09.20

This is the conclusion of the latest CJEU ruling.

The case involved a German employer, but due to the similarity of the regulations in this area, the judgment may also be applied in Poland.  

The Court held that failure to notify the labour office of planned group dismissals (in Poland, the so-called “first notice”) cannot constitute grounds for questioning the legality of the termination of an employment contract.

As a general rule, the Supreme Court believes that any errors in the application of the procedure for group dismissals result in recognizing the termination of the employment contract incorrect (e.g., in the judgment of 27 January 2021, II PUNPP 1/21). This, in turn, may mean losing the court case against the employee and the obligation to reinstate or pay compensation to the employee. 

The CJEU's latest approach is undoubtedly favourable to employers. However, it should be borne in mind that failure to comply with other obligations, including the so-called submission of the second notice to the labour office, i.e. about the arrangements for the group dismissal, may already result in the undermining of the termination of the employment contracts.

As a reminder:

In the first notice to the labour office, the employer should provide information about:

  1. the reasons for the intended group dismissal,
  2. the number of employees and the professional groups to which they belong,
  3. the professional groups intended for the group dismissal,
  4. the period during which the dismissal will take place,
  5. the proposed criteria for selecting employees for the group dismissal, 
  6. the order in which employee dismissals will be carried out,
  7. proposals for resolving labour issues related to the intended group dismissal.

In the second notice, the employer informs the labour office of the adopted arrangements for the group dismissal, including:

  1. the number of employees hired and dismissed and the reasons for their dismissal,
  2. the period during which the dismissal is to take place, and
  3. consultation of the intended group dismissal with the company's trade unions or with employee representatives selected in accordance with the procedure adopted by the employer.

Find more in the PRO HR September 2023