RESTRUCTURING: RECONCILIATION OF INTERESTS AND SOCIAL PLANS

If the employer is planning on restructuring in Germany, in the case of operational changes, the employer is obligated to negotiate a reconciliation of interests before implementing the operational changes. Operational changes include, for example, a closure, relocation of operations, or fundamental changes to the company organisation. The reconciliation of interests regulates the individual personnel measures, which should be implemented within the scope of the operational changes. Additionally, the employer must agree on a social plan. The social plan alleviates the economic disadvantages of the employees caused by the operational changes. If the employer cannot agree on a reconciliation of interests and social plan with the works council, the arbitration committee must be convened.