Mass layoff is a complex and painful process for any organization, subject to strict regulations of the Labor Code of Georgia. A layoff is considered mass when a company dismisses a certain number of employees within 30 calendar days (e.g., at least 10% for companies with over 100 employees). Such a process requires advance planning, as the employer is obliged to notify employees and the Ministry of Labor 45 days in advance and hold consultations. Violating these rules makes the dismissal illegal, leading to colossal financial sanctions and the obligation to reinstate all employees.
Mass Layoff Planning involves legal and strategic support to ensure the reduction is carried out legally, ethically, and with minimal risks. Lawyers featured on Legal.ge assist companies at every stage: from preparing notices to calculating compensations and conducting negotiations. This service is critical during reorganization, mergers, or economic crises.
What does the Mass Layoff Planning service cover?
- Legal Audit: Determining whether the planned reduction falls under the mass layoff category according to the law.
- Mandatory Notifications: Preparing and sending written notices to employees and the Ministry of Health (observing the 45-day deadline).
- Consultation Process: Conducting negotiations with employees or their representatives on ways to avoid dismissal or mitigate consequences.
- Selection Criteria: Developing objective and non-discriminatory criteria to determine who stays and who is let go.
- Compensation Packages: Calculating and formalizing statutory and additional severance packages.
- Documentation: Legally sound preparation of orders, protocols, and agreements.
Common scenarios requiring this service
A typical scenario is a factory closure or production line cancellation, resulting in the dismissal of 50 employees. The company must strictly adhere to deadlines to avoid a class-action lawsuit. Another scenario is the merger of two companies, requiring the reduction of duplicated positions (e.g., accounting). A third case is a global economic crisis forcing the company to cut costs through personnel.
Georgian Legal Framework
The process is regulated by Article 38-prima of the Labor Code of Georgia (Mass Layoff). The Code sets strict deadlines: the employer must send a notice at least 45 days in advance. Dismissal becomes effective no earlier than 45 days after notifying the Ministry. In case of violation, the dismissal is void.
Step-by-step service process
The process begins with calculating the timeline. The lawyer prepares a draft notice for the Ministry. Then consultations with employees begin (which must be confirmed by minutes). A list of persons to be dismissed is compiled based on objective criteria. After the deadline expires, individual orders are issued, and compensations are paid.
Why choose a specialist on Legal.ge?
Mass layoffs are a "legal minefield." On Legal.ge, you will find labor law experts with experience managing large restructuring projects who will help you navigate this difficult process painlessly.
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