Dismissal of the employee in case of dissolution of the job

The republished Labour Code, with subsequent amendments and additions, regulates the possibility of dismissal of employees due to the dissolution of the job. Thus, Article 65 of the Labour Code provides for the following situation: dismissal for reasons unrelated to the employee's person is the termination of the individual employment contract determined by dissolving the job, for one or more reasons unrelated to the employee's person, and the termination of the job must be effective and have a real and serious cause.

At present, there is no clear regulation of how this process and thus this type of dismissal takes place, but this type of dismissal is often challenged in court by dismissed employees.

By referring to the provisions of the Labour Code, we can appreciate the necessary steps and supporting documents that the employer must draw up.

First of all, this type of dismissal should take place when the employer decides on a reorganisation of the company's activities, which involves the abolition of posts that are no longer necessary. These posts must effectively disappear from the company's organisation chart, i.e. the job cuts must be real. Changing the organisation chart is the responsibility of the employer and is carried out with the approval of the company's decision-making bodies.

The company's decision-making bodies must issue a resolution of the general meeting of shareholders on the reorganisation of the company by reducing the number of posts, which must also approve the new organisation chart from which the abolished posts have been removed.

Secondly, the labour legislation stipulates that this type of dismissal for reasons not related to the employee may be individual or collective, and the employees benefit from active measures to combat unemployment and may receive compensation under the terms of the applicable collective labour agreement.

Once the decision to abolish the job has been taken and the new organisation chart has been approved, the employer must notify the employees in writing of the job abolishment and individual dismissal, mentioning that the notice period provided for in the individual employment contract begins to run. The notice period may not be less than 20 working days.

Upon the expiry of the notice period, a dismissal decision is issued in accordance with the provisions of the updated Labour Code.

Author: Attorney at law, Ana Maria Nistor, Law Office Grecu & Partners.

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