At a glance
- The government has submitted a proposal to amend the Cooperation Act to raise the threshold for applying the Act and reduce the length of negotiations on changes.
- Negotiation times would be cut in half.
- The aim is to reduce the administrative burden on small businesses.
A government proposal to amend the Cooperation Act was published on 28 November 2024. It proposes that, from 1 July 2025, employers with a regular workforce of between 20 and 49 employees will only be required to negotiate changes relating to redundancies if the employer is considering measures to reduce the number of employees by at least 20 over a period of 90 days. Lay-offs of 90 days or less would not require change negotiations. The minimum period for negotiating changes would be either three weeks or seven days, depending on the measures envisaged and the size of the company. An employee's employment could not be terminated before 30 days have elapsed from the date on which the proposal to commence change negotiations was submitted to the labour authority. The obligation for continuous dialogue would remain in companies with 20 to 49 employees on a regular basis, although the procedures would be modified.
