If working hours arrangements or further training are not able to solve the challenging situation faced by your company, you can avoid permanent redundancies by laying off personnel. In such cases, the employee’s work and salary are stopped, but the employment relationship is not.

Lay-offs are temporary and require a justifiable reason, which may be either   

  • the economic or productive situation, or   
  • hat the ability to offer work has temporarily deteriorated and the employee cannot be given further training   

You can only lay off permanent employees or fixed-term employees that are substituting for permanent ones.  If the ability to offer work has temporarily deteriorated, the maximum lay-off period is 90 days. Please note, however, that lay-offs do not need to be full-time: they can also simply involve reductions in daily or weekly working hours.    

As an employer, you must report the lay-offs to those affected by them at least two weeks beforehand. In addition, you must produce a written explanation of the reasons for the lay-off and its length.  You can read more about the obligations relating to lay-offs and view a prepared form on the Occupational Safety and Health Administration website. 

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