Dismissal for operational reasons

Could you explain to me what is meant by dismissal for operational reasons? It is a termination of employment by the employer for operational reasons if the termination is for operational reasons. For example, this could be the case if a company has to cut jobs or close parts of its business due to economic problems. In Germany, dismissal for operational reasons is regulated by the Dismissal Protection Act and requires urgent operational reasons that make it impossible to continue employing the employee.

Reasons for dismissal for operational reasons

Typical reasons for dismissal for operational reasons include company restructuring, rationalization measures, plant closures or lack of orders. Similar regulations to those in Germany to protect employees from arbitrary dismissal also apply in the EU and Switzerland. Employers are required to prove the operational and socially justified reason for the dismissal. Social compensation plans often have to be drawn up in order to mitigate the effects of redundancies and offer assistance to the employees affected.

Employee rights in case of company-related terminations

As a rule, employees who are made redundant for operational reasons are entitled to staggered severance payments depending on their length of service. They are also entitled to a reasonable notice period and, if applicable, a job creation or further training measure. Employees' rights in the event of redundancy are guaranteed by law in the EU and Switzerland to ensure that dismissals are only made as a last resort and that social aspects are taken into account. Preventing redundancies for operational reasons through a social plan Employers can negotiate with the works council or staff representatives to avoid or mitigate compulsory redundancies and draw up a social plan. The social plan includes measures such as severance pay, training measures or outplacement services for employees affected by redundancies. With the help of a social plan, it is possible to mitigate the social consequences of redundancies and provide support for the employees affected. Companies in many EU countries and Switzerland are required to draw up redundancy plans if there is a threat of compulsory redundancies.