The balance of interests

And what consequences it has for you as an employer

A balance of interests occurs during the course of an operational change and is negotiated by the employer and the employee representative committee. As part of the balance of interests the operating parties will, for example, settle at what point in time an area of business will be shut down. The committee will, among other things, try to prevent social impacts on the workforce.

Caution: Maintain your obligation to inform and negotiate

As an employer a balance of interest means: That you have an obligation to inform and negotiate. You are responsible for the implementation of a participation process. Otherwise laid off workers have an automatic claim to severance payment. Important: In order to avoid compensation claims, it is important that you also call the conciliation board when negotiations have failed. Ultimately you can shape the changes in operations according to your own ideas. It is not uncommon that the legal know how within the company is not fully sufficient to account for all legal particularities. Our law firm will gladly help you in this regard. 

The decisive advantages offered by a balance of interests

When it comes to layoffs, a balance of interests can offer great advantages: If you can settle with the employee representative committee, which employees are to be dismissed, then dismissal protection suits by the employees are only actionable to a limited extent. The employees who will be made redundant, must be listed by name – for a “balance of interests with a list of names”. This can significantly reduce the risk of litigation. For a balance of interests always insist on written form. By the way: In contrast to the balance of interests, the creation of a social plan is absolutely necessary. More information can be found under social plan.

In the field of employment law there are many pitfalls which only a specialist lawyer of labor law knows. Therefore, for balance of interests only employ the counsel of specialist attorneys of labor law, who can advise you with legal certainty and secure your interests unerringly.

Can a balance of interests facilitate dismissals? What to do with compensation claims and lawsuits? 

We are happy to answer these and other questions for you.
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