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The definition of and requirements for a mass layoff
As an initial step in deciding whether to conduct a mass layoff as defined by the ECL, the employer will need to assess the number of staff it intends to make redundant and whether that number will trigger the mass layoff procedures. Article 40 of the ECL defines a mass layoff as the dismissal of at least 20 employees or 10 per cent or more of the “total number” of the employer’s workforce.
If an employer does believe that it will reach the threshold of a mass layoff, then advance planning is essential. The ECL creates an increased administrative burden with repect to conducting a mass layoff, which reflects the law’s goal of encouraging longer term employment relationships and discouraging dismissals. Employers should understand that they cannot terminate employees as soon as the decision tho conduct the layoff is made. Rather, the employer should plan that the process will take at least 40-60 days and work backwards to plan for a smooth transition period. This 40-60 day time frame is based on the employee consultation procedure built into Articles 4 and 41 of the ECL and the need to submit a workforce reduction plan to the local labor authorities in advance of any unilateraltermination.