Our associate George Tsardellis recently published an article in Fileleftheros newspaper.
In his article, Mr. Tsardellis mentions that, despite the measures taken by the government to support entrepreneurship and avert layoffs, many companies have started considering the possibility of such layoffs. This is because they are predicting a dramatic fall in their turnover, even after the end of the crisis.
However, the author expresses the opinion that, even though the current circumstances are adverse, they do not provide adequate reasons for layoffs with immediate effect without compensation. According to the Law, one of the cases where layoffs are justified, is where there is a fall in the total turnover of the company (a case of redundancy). According to the case law, however, this does not include a periodic turnover decline.
Mr. Tsardellis, stresses that, currently there is much uncertainty about the duration and the actual impact of the crisis on companies. Such uncertainty means that employers should be extra cautious on the relevant issues. Each case must be assessed individually, under the prism of its particular circumstances. These could possibly justify layoffs due to redundancy at the appropriate time. Finally the author highlights the importance of proper and suitable legal advice for all interested parties.
You can find the article in this link.
For more information please speak with George Tsardellis or your usual contact at Elias Neocleous & Co LLC.