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Collective redundancy under Czech law:

1. Informing the trade union and the works council: Before giving notice to individual employees, it is necessary to inform the mentioned worker organizations of the company’s intentions at least 30 days in advance of delivering notice. The company is in addition required to inform them of:
   • the reason(s) for the collective redundancy,
   • the number of employees to be dismissed and their professions,
   • the number of all employees employed by the company and their professions,
   • the period within which the collective redundancy is to take place,
   • the criteria proposed for the selection of the workers to be dismissed (if there are any),
   • the severance pay and other rights of the dismissed employees.
   • If the company’s workplace does not have a works council nor an active union, the law allows the employer to substitute these organizations for “all employees”.
2. Negotiation: The Labour Code requires the employer to discuss the issue with these worker bodies in an effort to actively negotiate and attempt to reach agreement on measures aimed at preventing or limiting collective redundancies, which in this case will not be possible, so it will focus on mitigating the impact of the redundancies on individual employees.
3. Informing the Labor Office: The company is simultaneously obligated to inform in writing the regional branch of the Labour Office competent for the place of activity of the employer of the measures and their reasons as stated in the previous steps. This includes in addition to everything stated in the first step a notice of commencement of negotiations with the trade union and the works council.
4. Final report: After the conclusion of the negotiations with the worker organizations, the company is again required to inform the Labour Office of its decision and the results of the negotiations in writing. The report should also include the total number of employees who will be affected by the redundancies and their occupations. A copy of this report is required to be delivered to the aforementioned worker bodies.
5. Sending notice and employment termination: The employment of a worker may be terminated after delivering notice and not earlier than after a period of 30 days from the delivery of the final report to the Labour Office as outlined in step 4. This period can be waived by the employee. It is important to also uphold the regular notice period of 2 months. In addition, the notice should include the date of delivery of the final report to the Labor Office.
   • Regarding the 10 workers with an agreement to complete a job, their contracts may be terminated with a written notice of 15 days. Early dismissal of the 20 employment agency workers is possible only under the conditions stipulated in the contract with the employment agency. The requirements outlined by the previous points only apply to the 65 full-time employees.
6. Severance pay: Full-time employees are entitled to severance pay depending on the length of their employment. If they have been employed for less than a year, the severance pay should equate to their average 1-month salary; if more than a year while less than 2 years, a 2-month salary; if more than 2 years, a 3-month salary.