Shrnutí: In the event of mass layoffs, the employer must inform employee representatives in advance, discuss the intended measures with them, and fulfill its reporting obligations to the Labor Office. Employees laid off for organizational reasons are entitled to severance pay. Whether the special rules apply depends on the size of the employer and the number of employment relationships terminated within 30 calendar days. We explain the rules in effect in 2026.
Have you received a notice of termination or a proposed settlement as part of a mass layoff? Have your documents and entitlement to severance pay reviewed before taking any further steps.
If your boss has disbanded a four-person team at your company, it’s certainly an unpleasant experience for its members, and they may even mention that they were all “collectively fired.” However, this may not at all correspond to the definition of mass layoffs under the Labor Code. A mass layoff occurs when, within a 30-day period, the employment of the following is terminated:
A further condition is that the termination must be due to the closure or relocation of the employer or a part thereof, or because the employees have become redundant, for example, due to organizational changes (a decline in orders, the introduction of new technologies or equipment, etc.).
The aforementioned thresholds for the number of laid-off employees under the Labor Code are also met if only 5 (or more) employees receive notice of termination and agreements to terminate employment are concluded with the others for any of the reasons listed above.
Example: Four Terminations and Ten Agreements: An employer with 80 employees is laying off staff for organizational reasons. Within 30 calendar days, four employment relationships end by termination and ten by mutual agreement. Since there are at least five employment relationships terminated by notice missing from the count, this does not constitute a mass layoff under Section 62 of the Labor Code.
Example: Six terminations by notice and five by mutual agreement: At the same employer, six employment relationships will end by notice and five by mutual agreement within 30 calendar days for the same organizational reasons. The terminations by mutual agreement are counted, and the total of eleven terminated employment relationships exceeds the threshold of ten employees. This therefore constitutes a mass layoff.
Incapacity for work may also affect the assessment. In the case of termination for redundancy, a protection period applies, and under certain legal conditions, the end of the employment relationship may be postponed. It is therefore not enough to simply track the planned number of departures: it is necessary to verify the actual termination dates and the number of employment relationships within the relevant 30-day period.
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Tip: There aren’t many situations in which an employer can terminate an employee’s employment. One such scenario is termination for organizational reasons. What if your employer fires you, ostensibly eliminates your position, and then immediately recreates and refills it? We’ve covered this in a separate article.
Employees who are laid off are always entitled to severance pay in the event of mass layoffs. The amount varies depending on the number of years of service.
| Length of Employment with the Employer | Minimum severance pay |
|---|---|
| Less than 1 year | One times the average monthly earnings |
| At least 1 year and less than 2 years | Twice the average monthly earnings |
| At least 2 years | Three times the average monthly earnings |
Be careful when signing the agreement: Make sure it explicitly states the actual organizational reason for the termination of employment, the amount of severance pay, and the payment date. Failure to state the reason does not in itself preclude the right to severance pay, but it may make it more difficult to prove.
Tip: Is your employer planning to terminate your employment? Check to see if you might be entitled to severance pay. When does this entitlement arise, how is severance pay calculated, and what about social security contributions? We’ve covered these topics in detail in a separate article.
If a labor union (or an employee council) is active at the workplace, the employer is required to discuss the matter with it in advance. In such cases, at least 30 days in advance (i.e., before the actual notices of termination are issued), the employer must consult with and inform the union of the reasons for the mass layoffs, the number of employees to be laid off, as well as the total number and occupational composition of all employees working for the company, the timeframe in which the layoffs will take place, the right to severance pay, and any other rights of the laid-off employees.
If there is no labor union or union council established within the company, then the employees being laid off must be notified of all of this directly.
The purpose of this obligation to provide information is, among other things, to initiate negotiations that could potentially avert the mass layoffs and to outline alternative solutions. The employer must also ensure that the effects of the intended measures do not jeopardize the employees’ social situation and that all their rights are preserved.
Tip: Are labor unions a relic of the past, or can they bring about real change and improve working conditions at your workplace? What benefits can they provide, and in what situations must employers take them into account? Our article provides a clear overview.
The employer communicates with the regional branch of the Labor Office with jurisdiction over its place of business in two phases:
1. Written notice of intent. This is provided at the same time as employee representatives are notified, no later than 30 days before notices of termination are issued. It must include, in particular, the reasons for, scope of, and timing of the layoffs; the proposed selection criteria; and information regarding the commencement of negotiations with employee representatives.
2. Written report on the decision and the results of the negotiations. Subsequently, the employer must provide verifiable proof of delivery of a report on the decision regarding the mass layoffs and the results of the negotiations. The report must also specify the total number of employees and the number and occupational composition of the affected workers. Copies of both documents must also be provided to employee representatives or, if no representatives are appointed, directly to the affected employees.
Delivery of the report does not in itself terminate the employment relationship. An employment relationship terminated by notice may end no sooner than 30 days after delivery of this report. At the same time, the notice period must be taken into account. Late delivery may therefore postpone the end of the employment relationship, but not automatically by one day for each day of delay.
An employee may declare that they do not insist on the extension of the employment relationship. A special exception also applies when a decision is issued declaring the employer bankrupt. The employer must inform the employee of the date the notice was delivered to the Employment Office.
In its judgment, Case No. 21 Cdo 565/2024, the Supreme Court noted that a complaint challenging the validity of the termination of employment must be received by the court no later than the last day of the two-month period. It is not sufficient to simply drop it off at the post office on that day. Therefore, even in the case of mass layoffs, timely delivery of the complaint can determine the possibility of a successful defense.
Do you have doubts about the reason for your termination or the severance pay offered? We can help you assess your employer’s actions and your options for defense. When challenging the validity of an employment termination, it is important to address the matter in a timely manner.
Mass layoffs are subject to specific rules based on the employer’s size, the number of terminated employment relationships, and their distribution over 30 calendar days. The employer must inform employee representatives in advance, discuss options for mitigating the impact, and fulfill obligations toward the Labor Office. When an employment relationship is terminated for organizational reasons, employees are entitled to severance pay based on their length of service and average monthly earnings. It is also important to verify the content of the notice of termination or agreement, the termination date, and any deadlines for filing a legal challenge.
You don’t have to. The agreement requires the consent of both parties. If you do not agree with its terms, the employer must terminate the employment relationship in another lawful manner.
The mere expiration of the agreed-upon period is not counted toward the statutory periods. The situation is different if the employment relationship ends earlier due to termination by the employer or by mutual agreement under the terms of a mass layoff.
Generally, on the next payday following the termination of employment. A payment on the date of termination or at a later date may be agreed upon in writing.
Yes. The statutory amounts represent the minimum. A higher severance payment may be stipulated, for example, by a collective bargaining agreement, an internal regulation, or an agreement with the employer.
Yes, previous employment with the same employer is also taken into account, provided that the break between the two periods of employment did not exceed six months.
We will help you terminate the employment relationship with the employee so that the termination is valid, unquestionable and without the threat of fines or other risks for your company. We provide assistance quickly, at a predetermined price and throughout the country. You can pay after the service is provided.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 15 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 15 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
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