Change in Operations
A change in operations refers to far-reaching economic measures, such as the downsizing, relocation, or (temporary) shutdown of a business or part of a business, as well as rationalization and automation measures, layoffs that trigger a notification under the early warning system, or a change in legal form or ownership structure.
If a change in operations results in significant disadvantages for all employees or a substantial portion of the workforce, a company agreement (social plan) may be concluded in companies that permanently employ at least 20 employees. As a general guideline, it can be assumed that the planned measure must affect at least approximately 10% of the workforce. Operational changes trigger the employer’s obligation to inform the works council and, conversely, establish the works council’s rights to participate. Restructuring and reorganization measures are often associated with a change in operations.
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