Mass layoffs in the Czech Republic and Slovakia

Abstract

The paper describes the legislative framework for mass layoffs. Among the important obligations of the employer in case of mass layoffs there belongs a previous announcement of the intention to employees, unions and the Labour Office. The paper analyzes particular cases within selected companies. Companies tried to avoid mass layoffs by reducing costs such as an elimination of selected employee benefits, shortening working hours, abolition of recruitment, etc. Businesses have also reduced employee training. When analyzing the process of mass layoffs, authors have built certain assumptions. Assumptions were divided into five groups dealing with the reasons for layoffs, employee selection criteria, layoff process itself, help for laid-off employees, and building a good reputation. The analysis proved correct approach of the employer and an effort to handle the challenging situation to everyone’s satisfaction. The paper identifies the most common mistakes done in the lay-off process, which include specifically formal errors, like not defining the reasons of layoffs, absence of employer’s representative signature, etc. Very important mistake can be considered insufficient communication of employers with employees. Problems in communication can cause useless nervousness of employees and subsequently also a lower performance of the whole business.