Dismissal in Case of Redundancy

Redundancy in the Workplace 

When an employee is dismissed due to redundancy, there is an objective reason for the dismissal, and it is the employer who decides whether there is in fact redundancy in the workplace. Redundancy means, for example, that there is a lack of work tasks or that the company lacks money for the business and the employee’s wages. The important thing about dismissal due to redundancy is that it is not related to the employee personally.  

Before the employer can dismiss an employee due to a lack of work, the employer must investigate the possibility of redeploying the employee. This is called the redeployment obligation. However, the employer does not have to create new tasks or a new position for the employee. 

Notice Period 

The notice period is regulated either by the employment contract or by the Employment Protection Act (1982:80) (LAS). Under LAS, a minimum of one month’s notice is always required.  

Not Allowed to Invent a Lack of Work 

If the employee challenges the dismissal due to lack of work and the case is heard by the Labor Court, the employer must be able to prove that the employee was made for economic or other business reasons.  

Last In – First Out 

The main rule under LAS is “last in – first out”. The employer must therefore draw up a list to see who has been with the company for the shortest time. The order of the list depends on how long the employees have worked for the company. If a dismissal is in breach of the rotation rules, the employer may be liable for damages to the dismissed employee.  

Obligation To Negotiate 

According to the Act (1976:580) on co-determination in working life (MBL), an employer must negotiate with the trade union in the event of dismissal due to lack of work. The negotiations must be completed before the dismissal can take place. If the employer is bound by a collective agreement, the employer must negotiate with the trade union and if there is no collective agreement, the employer must negotiate with all trade union organizations that have members affected by the shortage of work. If the employee is not a member of the union, no negotiations are necessary. 

In a dismissal due to lack of work, there are many deadlines to meet and sometimes the employee needs legal representation during the process. Contact us at Advantage Law Firm for further assistance during the process! 

By phone at 08 – 20 21 40 or by email at info@advantage.se