Council Directive 98/59/EC of 20 July 1998 on the approximation of the laws of the Member States relating to collective redundancies
Date: 1998-07-20
Institutions: Council of the European Union
Subjects: approximation of laws, cessation of trading, collective dismissal, job cuts, worker consultation, worker information

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COUNCIL DIRECTIVE 98/59/EC

of 20 July 1998

on the approximation of the laws of the Member States relating to collective
redundancies

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 100 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parlia-
ment (1),

‘7.

The completion of the internal market must
lead to an improvement in the living and
working conditions of workers in the Euro-
pean Community (. . .).

The improvement must cover, where neces-
sary, the development of certain aspects of
employment regulations such as procedures
for
those
regarding bankruptcies.

redundancies

collective

and

Having regard to the opinion of the Economic and Social
Committee (2),

(. . .)

(1) Whereas

for

reasons of clarity and rationality
Council Directive 75/129/EEC of 17 February
1975 on the approximation of
the
Member States relating to collective redundan-
cies (3) should be consolidated;

the laws of

(2) Whereas it

is important

that greater protection
should be afforded to workers in the event of
collective redundancies while taking into account
the need for balanced economic and social devel-
opment within the Community;

(3) Whereas, despite increasing convergence, differ-
ences still remain between the provisions in force
in the Member States concerning the practical
arrangements and procedures for such redundan-
cies and the measures designed to alleviate the
consequences of redundancy for workers;

(4) Whereas these differences can have a direct effect
on the functioning of the internal market;

(5) Whereas the Council resolution of 21 January 1974
concerning a social action programme (4) made
provision for a directive on the approximation of
Member States’ legislation on collective redundan-
cies;

(6) Whereas the Community Charter of the funda-
mental social rights of workers, adopted at
the
European Council meeting held in Strasbourg on 9
December 1989 by the Heads of State or Govern-
ment of 11 Member States, states, inter alia, in
point 7, first paragraph, first sentence, and second
paragraph; in point 17, first paragraph; and in point
18, third indent:

17. Information, consultation and participation for
workers must be developed along appropriate
lines, taking account of the practices in force
in the various Member States.

(. . .)

18. Such information, consultation and participa-
tion must be implemented in due time, partic-
ularly in the following cases:

((cid:190) . . .)

((cid:190) . . .)

(cid:190) in cases of collective redundancy pro-

cedures;

((cid:190) . . .)';

(7) Whereas this approximation must

therefore be
promoted while the improvement is being main-
tained within the meaning of Article 117 of the
Treaty;

(8) Whereas,

in order

to calculate the number of
redundancies provided for
in the definition of
collective redundancies within the meaning of this
Directive, other forms of termination of employ-
ment contracts on the initiative of the employer
should be equated to redundancies, provided that
there are at least five redundancies;

(9) Whereas it should be stipulated that this Directive
applies in principle also to collective redundancies
resulting where the establishment’s activities are
terminated as a result of a judicial decision;

(1) OJ C 210, 6. 7. 1998.
(2) OJ C 158, 26. 5. 1997, p. 11.
(3) OJ L 48, 22. 2. 1975, p. 29. Directive as amended by Dir-

ective 92/56/EEC (OJ L 245, 26. 8. 1992, p. 3).

(4) OJ C 13, 12. 2. 1974, p. 1.

(10) Whereas the Member States should be given the
option of stipulating that workers’ representatives
may call on experts on grounds of the technical

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complexity of the matters which are likely to be
the subject of the informing and consulting;

(11) Whereas it is necessary to ensure that employers’
obligations as regards information, consultation and
notification apply independently of whether the
decision on collective redundancies emanates from
the employer or
from an undertaking which
controls that employer;

(12) Whereas Member States should ensure that work-
ers’ representatives and/or workers have at their
disposal administrative and/or judicial procedures
in order to ensure that the obligations laid down in
this Directive are fulfilled;

(13) Whereas this Directive must not affect the obliga-
tions of the Member States concerning the dead-
lines for transposition of the Directives set out in
Annex I, Part B,

the employer’s initiative for one or more reasons not
related to the individual workers concerned shall be
assimilated to redundancies, provided that there are at
least five redundancies.

2.

This Directive shall not apply to:

(a) collective redundancies effected under contracts of
employment concluded for limited periods of time or
for specific tasks except where such redundancies take
place prior to the date of expiry or the completion of
such contracts;

(b) workers employed by public administrative bodies or
in
by establishments governed by public law (or,
Member States where this concept is unknown, by
equivalent bodies);

(c) the crews of seagoing vessels.

HAS ADOPTED THIS DIRECTIVE:

SECTION I

Definitions and scope

Article 1

1.

(a)

For the purposes of this Directive:

‘collective redundancies' means dismissals effected by
an employer for one or more reasons not related to
the individual workers concerned where, according to
the choice of
the number of
the Member States,
redundancies is:

(i) either, over a period of 30 days:

(cid:190) at

10

least

in establishments normally
employing more than 20 and less than 100
workers,

(cid:190) at least 10 % of the number of workers in
establishments normally employing at
least
100 but less than 300 workers,

(cid:190) at

least

30

in establishments normally

employing 300 workers or more,

(ii) or, over a period of 90 days, at least 20, whatever
the number of workers normally employed in the
establishments in question;

(b)

‘workers’ representatives' means the workers’ repres-
entatives provided for by the laws or practices of the
Member States.

For the purpose of calculating the number of redundan-
cies provided for in the first subparagraph of point (a),
terminations of an employment contract which occur on

SECTION II

Information and consultation

Article 2

1. Where an employer
is contemplating collective
redundancies, he shall begin consultations with the work-
ers’ representatives in good time with a view to reaching
an agreement.

2.
These consultations shall, at least, cover ways and
means of avoiding collective redundancies or reducing the
number of workers affected, and of mitigating the
consequences by recourse to accompanying social meas-
ures aimed, inter alia, at aid for redeploying or retraining
workers made redundant.

Member States may provide that the workers’ represent-
atives may call on the services of experts in accordance
with national legislation and/or practice.

3.
To enable workers’ representatives to make construc-
tive proposals, the employers shall in good time during
the course of the consultations:

(a) supply them with all relevant information and

(b) in any event notify them in writing of:

(i) the reasons for the projected redundancies;

(ii) the number of categories of workers to be made

redundant;

(iii) the number and categories of workers normally

employed;

(iv) the period over which the projected redundancies

are to be effected;

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(v) the criteria proposed for the selection of

the
in so far as
legislation and/or practice confers the

workers to be made redundant
national
power therefor upon the employer;

(vi) the method for calculating any redundancy
payments other than those arising out of national
legislation and/or practice.

The employer shall
forward to the competent public
authority a copy of, at least, the elements of the written
communication which are provided for
in the first
subparagraph, point (b), subpoints (i) to (v).

4.
The obligations laid down in paragraphs 1, 2 and 3
shall apply irrespective of whether the decision regarding
collective redundancies is being taken by the employer or
by an undertaking controlling the employer.

In considering alleged breaches of
the information,
consultation and notification requirements laid down by
this Directive, account shall not be taken of any defence
on the part of the employer on the ground that the
necessary information has not been provided to the
employer by the undertaking which took the decision
leading to collective redundancies.

SECTION III

Procedure for collective redundances

Article 3

Employers

1.
competent public
authority in writing of any projected collective redundan-
cies.

shall notify

the

However, Member States may provide that in the case of
planned collective redundancies arising from termination
of the establishment’s activities as a result of a judicial
decision, the employer shall be obliged to notify the
competent public authority in writing only if the latter so
requests.

This notification shall contain all relevant information
concerning the projected collective redundancies and the
consultations with workers’ representatives provided for in
Article 2, and particularly the reasons for the redundan-
cies, the number of workers to be made redundant, the
number of workers normally employed and the period
over which the redundancies are to be effected.

The workers’ representatives may send any comments
they may have to the competent public authority.

Article 4

1.
Projected collective redundancies notified to the
competent public authority shall take effect not earlier
than 30 days after the notification referred to in Article
3(1) without prejudice to any provisions governing indi-
vidual rights with regard to notice of dismissal.

Member States may grant the competent public authority
the power to reduce the period provided for in the
preceding subparagraph.

2.
The period provided for in paragraph 1 shall be used
by the competent public authority to seek solutions to the
problems raised by the projected collective redundancies.

3. Where the initial period provided for in paragraph 1
is shorter than 60 days, Member States may grant the
competent public authority the power to extend the
initial period to 60 days following notification where the
problems raised by the projected collective redundancies
are not likely to be solved within the initial period.

Member States may grant the competent public authority
wider powers of extension.

The employer must be informed of the extension and the
grounds for it before expiry of the initial period provided
for in paragraph 1.

4. Member States need not apply this Article to collec-
tive redundancies arising from termination of the estab-
lishment’s activities where this is the result of a judicial
decision.

SECTION IV

Final provisions

Article 5

This Directive shall not affect the right of Member States
to apply or to introduce laws, regulations or adminis-
trative provisions which are more favourable to workers or
to promote or to allow the application of collective agree-
ments more favourable to workers.

Article 6

2.
Employers shall forward to the workers’ represent-
atives a copy of the notification provided for in paragraph
1.

Member States shall ensure that judicial and/or adminis-
trative procedures for the enforcement of obligations
under this Directive are available to the workers’ rep-
resentatives and/or workers.

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Article 7

Article 9

Member States shall forward to the Commission the text
of any fundamental provisions of national law already
adopted or being adopted in the area governed by this
Directive.

This Directive shall enter into force on the 20th day
following its publication in the Official Journal of the
European Communities.

Article 10

Article 8

This Directive is addressed to the Member States.

The Directives listed in Annex I, Part A, are hereby
1.
repealed without prejudice to the obligations of
the
Member States concerning the deadlines for transposition
of the said Directive set out in Annex I, Part B.

2. References
shall be
construed as references to this Directive and shall be read
in accordance with the correlation table in Annex II.

to the repealed Directives

Done at Brussels, 20 July 1998.

For the Council

The President

W. MOLTERER

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ANNEX I

PART A

Repealed Directives

(referred to by Article 8)

Council Directive 75/129/EEC and its following amendment:

Council Directive 92/56/EEC.

PART B

Deadlines for transposition into national law

(referred to by Article 8)

Directive

Deadline for transposition

75/129/EEC (OJ L 48, 22.2.1975, p. 29)

92/56/EEC (OJ L 245, 26.8.1992, p. 3)

19 February 1977

24 June 1994

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ANNEX II

CORRELATION TABLE

Directive 75/129/EEC

This Directive

Article 1(1),
indent, point 1

first subparagraph, point

Article 1(1),
indent, point 2

first subparagraph, point

Article 1(1),
indent, point 3

first subparagraph, point

(a),

first

(a),

first

(a),

first

Article 1(1), first subparagraph, point (a), second
indent

Article 1(1), first subparagraph, point (a)(i), first
indent

Article 1(1), first subparagraph, point (a)(i), second
indent

Article 1(1), first subparagraph, point (a)(i), third
indent

Article 1(1), first subparagraph, point (a)(ii)

Article 1(1), first subparagraph, point (b)

Article 1(1), first subparagraph, point (b)

Article 1(1), second subparagraph

Article 1(1), second subparagraph

Article 1(2)

Article 2

Article 3

Article 4

Article 5

Article 5a

Article 6(1)

Article 6(2)

Article 7

(cid:190)

(cid:190)

(cid:190)

(cid:190)

(cid:190)

Article 1(2)

Article 2

Article 3

Article 4

Article 5

Article 6

(cid:190)

Article 7

(cid:190)

Article 8

Article 9

Article 10

Annex I

Annex II