I have been made redundant due to the closure of the company, what should I do?

Company closures due to mobility or company retirement is a fear and a reality that many workers have to face. Therefore, if you are in such a situation, it is best to seek advice from a labour lawyer.

The procedures to follow are the same as for collective dismissals. Work a minimum of 20 days per year and a maximum of 12 months. To request an ERTE, a company must follow a series of steps to keep the dismissal legal. Within 30 days, it will have to negotiate the conditions of the ERTE with the worker. Then it will have to apply for authorisation from the Ministry of Labour or the Ministry of Labour, pass a labour inspection and wait for a resolution.

Once the authorisation is in force, give 15 days' notice to the workers and propose the corresponding solutions. For companies with less than 5 employees, individual objective dismissal is possible. Gives 15 days' notice and compensation.

What are the reasons for the company's decision to close?

There can be many reasons why a business closes. One of the most common reasons why a company decides to end its business is due to financial problems, although they can also be due to retirement, death or disability. They can also be caused by disagreements between partners.

The Supreme Court ruled that the closure of the company on the basis of objective legal criteria is an understandable cause for termination. From an entrepreneur's point of view, closing down a business can mean failure and a big loss of money. In some other cases, an escape route.

In cases where a business manifests bankruptcy and exposes its financial problems, it may use these junctures as an excuse to lay off workers. However, the dismissed employees are entitled to compensation.

What happens if the dismissal is due to the employer's retirement?

Retirement of the employer is another legal reason for terminating an employment contract. Such retirement will necessarily result in the closure of the institution or activity. In other words, its dissolution is required because continuity does not give a reason for dissolution.

Employees are entitled to severance pay if they are dismissed due to retirement of their employer; 20 days per year for a maximum of 12 months. The number of employees is the next factor affecting the retirement settlement process. For companies with more than five employees, the provisions on collective redundancies apply. The relevant authorities must then be notified. Once the authorisation is received, a negotiation period begins, where the conditions are negotiated with the employees, who are notified of the corresponding notices and resolutions. Companies with five or fewer employees have simpler procedures. Employers send a letter of notice 15 days in advance stating the reason for the termination of the contract.

However, for the self-employed, the method of compensation is different. In this case, a different procedure has to be applied. If the contractor is a natural person, self-employed, he/she does not have to apply to the authorities for authorisation. The only step to be taken is to notify the workers. For their part, these persons are entitled to the compensation of one month's salary. The same applies in the event of the death of the self-employed person.

What happens if the company does not close after the entrepreneur retires?

The legal grounds for such dismissal include cessation of activities or closure as one of the basic requirements. Therefore, there is no right to terminate the employment contract if the company continues to be owned by the retiree or is in the hands of a third party.

Some self-employed choose to retire voluntarily, which allows them to continue their work activities. If after some time they decide to switch to passive retirement, this is also not a valid reason for dismissal. Case law holds that, in any case, it occurs at the moment of retirement, not afterwards. Employees may choose to request revocation or refuse dismissal. For this step, it will be analysed whether an agreement was reached during the consultation, whether the procedures were followed, whether you acted in good faith, etc. It is important to know that you only have 20 days to appeal. On the other hand, it is recommended that when you receive a notice that you sign as "Dissatisfied", you add the date of the incident and keep a copy. This document is required for any lawsuit.

What is the severance pay for a company closure and how much is my severance pay?

When a business decides to close the business, it has to comply with several aspects or requirements before it can start dismissing employees. Such dismissal for economic reasons must be notified to the employee in writing, stating the causes and justification. Thereafter, it is the company's responsibility to provide adequate compensation. In case of this type of dismissal, the compensation is the salary of 20 days worked per year, set at a maximum of 12 months in accordance with the worker's statute.

What should be done if the company is unable or unwilling to pay compensation for disinterested reasons?

Although it is the company's responsibility, it is possible that the employer is unwilling or unable to pay because he is insolvent. If this happens, your rights are still protected by law. The company must state in the letter of dismissal due to closure that it is not possible to pay compensation to the employees.

If the company is able to pay compensation, it will not only pay, but is entitled to 45 days' wages per year. However, if the company is unable to process the payment effectively, it can always count on the support of the Wage Guarantee Fund (FOGASA). On the other hand, this type of dismissal does not prevent you from receiving unemployment benefit. You only need to show the letter of termination.