A step backwards in collective dismissal (ERE) procedures!

The Government has proposed this legislative amendment. This change is crucial because it would require collective dismissals (EREs) to be authorized by the labor authority before they can be implemented. Until now, if the consultation period ended without an agreement, the company could still go ahead with the ERE, although it could be challenged by the workers' representatives.

This type of prior administrative authorization was in place before (similar to force majeure furloughs, ERTEs) and was repealed during the previous economic crisis in order to streamline procedures and make collective measures more effective.

The repealed system put an end to a time when the administration inexplicably refused to authorize EREs. In practice, only those submitted with an agreement were approved — which led to a domino effect of higher severance costs to push parties into accepting the collective measure.

I'm afraid we're heading back to the same dynamic. Nothing good for labor relations.