I know it's much more difficult to fire people in the EU, but is there an exception if it's done as part of a layoff?
The only real solution I can think of is regulatory in nature (e.g. requiring paying out 6 months pay during a layoff, which might make companies think twice before "hiring ahead of growth")
Because let's face it, "hiring ahead of growth" is the real problem. These companies aren't firing people because they are making less money. They're firing people because they hired people before they actually needed them, in anticipation of future growth that didn't materialize.
1. The minimium notice period for termination of employment is between 1 and 3 months.
2. The employer must select which employees to lay off depending on social factors(age, do they have young children or other dependents, are they disabled etc.) and not based on performance ratings.
3. If the company is laying off staff, but also at the same time hiring people with a similar skillset, they have to offer the existing staff the preferred chance to take the positions.
I think there is also a culutural difference to think long term even when enjoying short term success, but perhaps that is also present in the US when comparing tech and non-tech companies.
Employment rules are not the same across the EU. You would have to specify the country. In NL if you fire more than 20 people in a 3 month period there is a specific set of rules you have to apply and it determines in what order you must fire people as part of a mass layoff and who you can even fire as part of a mass layoff.
I work in France… the company I work for is travel related… and we have thousands of employees. During the pandemic we did not let go a single person! We had 2 years of basically zero revenue and the most we did was offer very juicy severance package for people willing to go or to retire early!
I know it's much more difficult to fire people in the EU, but is there an exception if it's done as part of a layoff?
The only real solution I can think of is regulatory in nature (e.g. requiring paying out 6 months pay during a layoff, which might make companies think twice before "hiring ahead of growth")
Because let's face it, "hiring ahead of growth" is the real problem. These companies aren't firing people because they are making less money. They're firing people because they hired people before they actually needed them, in anticipation of future growth that didn't materialize.