What are your rights in the event of downsizing and restructuring?
Learn about your rights in the event of restructuring and downsizing. NITO gives you an overview of the process, the selection criteria and offers legal assistance when you need it.
Restructuring - in short
Restructuring is a process where changes take place in the organization. Some examples of restructuring are relocation of workplaces, changes in organizational structure, and streamlining of operations. In some cases, the employer also wants to make changes to staffing.
Your rights in a restructuring: As an employee, you have the right to information, participation and development in restructuring processes. If there is a company group at your workplace, your union representative will represent the NITO members in such matters.
This page is aimed at those who work in the private or municipal sector as well as Spekter. Do you work in the state? Read about your rights in the event of downsizing here.
Downsizing
When can the employer downsize?
You cannot be dismissed without the employer having a valid reason. In a downsizing, the reason for dismissal must be linked to conditions in the enterprise and not to the individual employee. An employer cannot use a downsizing to get rid of people just because they think you are doing a bad job or have done something reprehensible.
What constitutes a factual reason for dismissal in a downsizing must be assessed specifically in each case. Here are some factors that come into play:
- Restriction and rationalization: Rationalisation and restrictions that are necessary for operations will in principle be a factual reason for dismissal. There is no requirement that the company must perform poorly in order to downsize.
- Is there other suitable work? A dismissal is normally not justified if a department is closed down, and the company has other suitable work for you in other parts of the company. If the enterprise is part of a group, the employer must look for other suitable work for the employees in other enterprises in the group.
Notice of change - when the needs of the employer change and you are offered a new employment contract
A change notice is when the employer terminates the existing employment contract, but you are offered a new agreement. This may be relevant in the event of changing needs in the workplace. The requirements for a redundancy notice are the same as for other redundancies.
Discussion meeting / 15.1 meeting
Before the employer decides who is to be dismissed, they must have a discussion meeting with the individual employee. This meeting is often called a 15.1 meeting, according to the provision on discussion before a decision on dismissal (lovdata.no).
In this meeting, it is important that you inform about all matters that may be of importance before the employer makes the final selection of who will be made redundant. Here you can inform about your skills or social conditions. Feel free to contact NITO in advance of the discussion meeting for advice.
Convening a discussion meeting: 5 tips for you as an employee
Selection in the event of downsizing – who must go?
When a company goes to dismiss several employees, the selection of those who are made redundant must be justifiable. A comparison must be made between the employees in the selection circle, and the selection must be objectively justified.
The main rule is that it must be chosen from among employees in the entire enterprise, not just a single department or division. In exceptional cases, the sample circle may be limited to a specific geographical unit or department, but then there must be a factual and weighty reason. ·
- Seniority: Seniority is an objective criterion and a good starting point for assessing whether the selection has been objective.
- Competence: The employer will often make the selection based on the employees' competence. It is important to show what skills you have.
- Social conditions: Social considerations involve taking into account employees who are very difficult to come out of a downsizing situation, such as disability, illness
Your interests and those of your employer must be weighed against each other
The employer must weigh the burden the dismissal imposes on the employee against the company's need for restrictions. The decisive factor is whether the dismissal is sufficiently justified in relation to the person who is dismissed.
The greater the burden the dismissal will be for the employee, the stronger the company's need for dismissal must be.
There are requirements for the termination itself
A notice of termination must be in writing and delivered in person or sent by registered mail.
The notice of termination shall contain information about:
- your right to demand a negotiation meeting
- that you can file a lawsuit
- preferential right to new employment
You can demand negotiations if you disagree with the termination
If you believe that the dismissal is not objectively justified, you can demand negotiations with your employer within two weeks of the dismissal.
In the meeting, you can argue that there is no factual reason for downsizing or that the selection is not correct. You have the right to have an adviser from NITO with you.
What can NITO help with?
NITO offers legal assistance, including advice and support in negotiation meetings and legal processes. You must have been a member of NITO for at least three months prior to termination.
NITO is here when it matters
Many people do not know where to start when uncertainty arises in working life. As a trade union, we are here to give you security, support and concrete advice – when you need it most.
