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10 min czytania 20 February 2025

Mass layoffs – what is worth knowing?

Group layoffs are a difficult situation for both the employee and the employer. They can happen at any time. The law takes into account group layoffs because not every workplace can meet the challenges of the labor market. What are group layoffs? Where can an employee seek help in the event of group layoffs? What are the regulations regarding group layoffs? Who can carry out group layoffs? What are the rights of employees?

Mass layoffs

TABLE OF CONTENTS

What are group layoffs?

Group layoffs are a type of termination of an employee’s contract by the employer. Not every layoff of a larger number of employees is considered a group layoff. In order to be considered a group layoff, the following conditions must be met:

  • employment of at least 20 employees in one workplace,
  • the employment relationship must be terminated for reasons unrelated to the employees,
  • a specified number of people are laid off within 30 days (e.g. in small companies it is at least 10 employees).

How many people are there group layoffs?

Group layoffs only occur after the above conditions have been met. It is worth remembering that not every layoff of a larger number of people immediately means a group layoff. How many people are there group layoffs? This number corresponds to the number of employees. This is respectively:

  • 10 people in companies employing fewer than 100 employees.
  • 10% of employees in companies with 100 to fewer than 300 employees.
  • 30 people in companies employing at least 300

Read also: Changes in the Labor Code 2025

Mass layoffs

What are the causes of group layoffs?

The causes of group layoffs may be different and depend on factors beyond the control of the employees. What are the most common causes of group layoffs?

  • company restructuring
  • liquidation of a workplace
  • financial problems of a company
  • changes in the labor market.

Group layoffs — what are employees entitled to?

Employees covered by group layoffs are entitled to a severance payment, in accordance with Article 8 of the Act on Special Principles for Terminating Employment Relationships. Its amount is determined on the same principles as the equivalent for unused leave. However, there is a maximum limit for severance pay – it cannot exceed 15 times the minimum wage applicable on the date of termination of the employment contract.

Group layoffs and employee severance pay

If a group layoff occurs in a company, the employer is obliged to pay compensation to employees affected by the group layoffs. The amount of the severance pay depends on the length of employment at a given workplace. The amount of the severance pay is:

  • one month’s salary – if the employee has been employed by a given employer for less than 2 years,
  • two months’ salary – if the employee has been employed by a given employer for 2 to 8 years.
  • three months’ salary – if the employee has been employed by a given employer for more than 8 years.

This is the minimum amount of severance pay resulting from the regulations, however, the employer may provide for a higher benefit in the work regulations or collective agreement. The maximum amount of severance pay, however, cannot exceed 15 times the minimum wage applicable on the date of termination of the employment contract.

mass layoffs

Who is not affected by group layoffs?

Group layoffs in a company cannot cover all employees. The law provides special protection for certain people who are protected from losing their jobs even during mass layoffs.

Who is protected from group layoffs?
The group of protected employees includes:

  • people of pre-retirement age,
  • pregnant women,
  • employees on maternity, parental or paternity leave,
  • members of the board of a trade union,
  • social labor inspectors,
  • employees called up for military service or military training.

Although the collective dismissal procedure does not cover them, the employer can introduce changes to working conditions or remuneration. In practice, this means, for example, transferring to another position or reducing pay if the company’s situation requires it.

Employer obligations and employee layoffs

When planning group layoffs, the employer must follow specific legal procedures to ensure that the process complies with applicable regulations. Before laying off employees, the employer is required to consult the planned layoff with the company’s trade unions. If there are no trade unions operating in the company, consultations are held with employee representatives – usually a group of five selected people.

The employer must provide written information on:

  • the reasons for the planned layoff,
  • the number of employees employed in the company and the number of people covered by the layoff,
  • the professional groups to which the employees to be laid off belong,
  • the period in which the layoffs will be made,
  • the criteria for selecting employees for layoffs,
  • the order in which the layoffs will be carried out,
  • proposals for resolving employee matters, including possible cash benefits and the method of determining them.

This information must be presented to trade unions or employee representatives in advance. This will allow them to prepare proposals for resolving employee issues. After the information is provided, both parties have 20 days to reach an agreement on the principles of conducting group layoffs. If an agreement is not reached by that time, then the principles of conduct are established in the regulations by the employer.

Group layoffs and employee re-employment

After the group layoffs are over, it may happen that the company’s financial situation improves and the employer decides to re-employ employees. In such a case, people who lost their jobs as a result of group layoffs have priority in returning to work, but this does not mean automatic reinstatement to the same position or with the previous salary and terms of employment maintained.

When does an employee have the right to re-employment?
An employer is obliged to hire a dismissed employee if three conditions are met simultaneously:

The employer hires new employees in the same professional group from which the employee was previously dismissed.

The dismissed employee expressed their willingness to return to work for this employer within one year of the date of termination of the employment relationship.

No more than 15 months have passed since the date of termination of the employment relationship as part of the group layoff.

If the employer fails to take into account the employee’s priority right to re-employment, they may be held liable. A dismissed employee has the right to demand both the establishment of an employment relationship and compensation for the period of unemployment from the moment the employer became obliged to re-employ.

This position was confirmed by the Supreme Court in its judgment of 11 January 2018 (reference number II PK 234/17), finding that an employee omitted from the re-employment process may pursue their rights in court, including demanding compensation for the period of unemployment.

Group redundancies must be carried out in accordance with applicable legal provisions in order to protect the interests of both employees and the employer. Every employer planning group redundancies is obliged to follow specific procedures and clearly define the number of group redundancies and the reasons for their decision.

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