Regulation of Collective Redundancies in Lithuania
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Abstract
Crises in enterprises cannot be evaded in circumstances of market economy; therefore the redundancy of a part of workers is indispensable. In general, it is necessary to make redundant a group of workers due to the economic, social and other circumstances, leading to the closure (liquidation) or reorganisation (restructuring) of enterprises. This article is aimed at analysing of guarantees submitted to workers in cases of collective redunancies applied in Lithuania. A great number of guarantees is provided with a view to solving the problem of employment of workers, forasmuch it is the essential part of the protection of whole set of rights of workers. In such cases the international standards do not impose any special requirements for the employer, except the following: a) submission to workers of proper information in due time; b) the arrangement of consultations with them; c) the redundancies must subject only to the procedure prescribed by laws; d) the transfer of part of authority to public institutions which in certain cases would necessitate to stay or completely prohibit the redundancies.
In order to explore the raised tasks, the work deals with the appropriate problems related to regulation and procedure of collective redundancies. In the course of research it was established that the collective redundancies in the Labour Code of Lithuania are understood more constricted in relation to the conception under the Directive No 98/59/EC, which provides that collective redundancies shall be held redundancies on the initiative of the employer (irrespective of the origin of initiative) provided that there are at least five redundancies not related to personal characteristics of workers.
It was established that the employer is entitled to perform collective redundancies only following the expiry of consultation and notification/information procedure provided for in Directive No 98/59/EB, however, under the regulation in Lithuania, in case the enterprise is subject to restructuring or bankruptcy procedure, the time-limits for information and consultation procedure are not provided at all, and the obligations of employers are unrealizable within the defined timelimits necessary for giving notice to a worker and making him redundant.
As well, in the course of research it was established that the notification and redundancy time-limits in the Enterprise Bankruptcy Law were laid down in breach of the principles of equality and non-discrimination in relation to those workers who were notified of redundancy without the fault on the part of a worker in pursuance of general provisions of Article 130 of Labour Code, as well in breach of any other time-limits, under which the employer must perform its obligations laid down in Directive 98/59/EC and Articles 130(4) and 130(5) of the Labour Code, i.e. to notify the competent institutions and representatives of workers and to arrange consultations with them.
The obligation of the employer to consult workers on redundancy matters is established not only in order to evade collective redundancies or to diminish the number of dismissed workers, but as well seeking to smooth the outcomes of these redundancies, that are possible only following the inclusion of appropriate public institutions into this procedure competent to re-qualify or to educate the dismissed workers with a view to employing them. However, the consultation tasks in Lithuania are unrealizable following the opening of bankruptcy procedure to an enterprise.
The unlawful redundancy is always connected to material expenses, legitimate expectations of workers and the restriction of the employer’s rights to dismiss the workers without a valid reason or unlawfully. However, the decision in Lithuania on the reinstatement into the previous job or the payment of compensation in case of non-reinstatement of the unlawfully dismissed worker is adopted by the court only, irrespective of whether the applicant applies for it.
In order to explore the raised tasks, the work deals with the appropriate problems related to regulation and procedure of collective redundancies. In the course of research it was established that the collective redundancies in the Labour Code of Lithuania are understood more constricted in relation to the conception under the Directive No 98/59/EC, which provides that collective redundancies shall be held redundancies on the initiative of the employer (irrespective of the origin of initiative) provided that there are at least five redundancies not related to personal characteristics of workers.
It was established that the employer is entitled to perform collective redundancies only following the expiry of consultation and notification/information procedure provided for in Directive No 98/59/EB, however, under the regulation in Lithuania, in case the enterprise is subject to restructuring or bankruptcy procedure, the time-limits for information and consultation procedure are not provided at all, and the obligations of employers are unrealizable within the defined timelimits necessary for giving notice to a worker and making him redundant.
As well, in the course of research it was established that the notification and redundancy time-limits in the Enterprise Bankruptcy Law were laid down in breach of the principles of equality and non-discrimination in relation to those workers who were notified of redundancy without the fault on the part of a worker in pursuance of general provisions of Article 130 of Labour Code, as well in breach of any other time-limits, under which the employer must perform its obligations laid down in Directive 98/59/EC and Articles 130(4) and 130(5) of the Labour Code, i.e. to notify the competent institutions and representatives of workers and to arrange consultations with them.
The obligation of the employer to consult workers on redundancy matters is established not only in order to evade collective redundancies or to diminish the number of dismissed workers, but as well seeking to smooth the outcomes of these redundancies, that are possible only following the inclusion of appropriate public institutions into this procedure competent to re-qualify or to educate the dismissed workers with a view to employing them. However, the consultation tasks in Lithuania are unrealizable following the opening of bankruptcy procedure to an enterprise.
The unlawful redundancy is always connected to material expenses, legitimate expectations of workers and the restriction of the employer’s rights to dismiss the workers without a valid reason or unlawfully. However, the decision in Lithuania on the reinstatement into the previous job or the payment of compensation in case of non-reinstatement of the unlawfully dismissed worker is adopted by the court only, irrespective of whether the applicant applies for it.
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Please see Copyright and Licence Agreement for further details.
