Collective redundancy

What is collective redundancy?

Collective redundancy is a procedure used when an employer plans to terminate employment contracts for reasons not related to individual employees and the number of planned dismissals reaches a statutory threshold within a specified period. In practice, it usually concerns organisational changes, restructuring, closure of part of a business, reduction of operating costs, automation, relocation, or a significant downturn in demand.

In Poland, collective redundancy is regulated mainly by the Act of 13 March 2003 on special rules for terminating employment relationships with employees for reasons not attributable to employees. This procedure applies to employers with at least 20 employees. As a rule, collective redundancy occurs where, within a period not exceeding 30 days, the employer intends to dismiss at least 10 employees if it employs fewer than 100 employees, at least 10% of employees if it employs at least 100 but fewer than 300 employees, or at least 30 employees if it employs 300 or more employees. These thresholds follow the 2003 Act and reflect the framework used in Polish labour law.

Collective redundancy is not limited to standard notices of termination. In some cases, it may also include situations where employment ends by mutual agreement, provided that the initiative comes from the employer and affects at least 5 employees within the relevant period. The legal qualification of a specific process depends on the actual circumstances, the number of affected employees, the reasons for termination, and the way the employer structures the reduction.

What does collective redundancy involve?

A collective redundancy process requires more than simply issuing termination notices. The employer must first assess whether the planned reduction meets the statutory criteria. If it does, additional procedural obligations arise. These typically include consultation with trade unions, or – where no trade union operates – consultation with employee representatives chosen in the manner adopted by the employer. The purpose of the consultation is to discuss ways to avoid dismissals, reduce their scale, or mitigate their consequences.

The employer must also provide relevant information in writing. This usually includes the reasons for the planned redundancies, the number and categories of employees affected, the period during which dismissals are to be made, the criteria for selecting employees for dismissal, and proposals concerning employee-related matters, including the method of calculating statutory severance. The employer must also notify the competent district labour office in writing.

Where trade unions operate, the parties should seek to conclude an agreement setting out the rules of the collective redundancy. If no agreement is reached within the statutory timeframe, or if no trade union is present, the employer may adopt internal regulations governing the process. Even then, the employer must comply with mandatory labour law requirements, including rules on employee protection, equal treatment, and proper selection criteria.

Collective redundancy often intersects with other areas of employment law. These may include protection against dismissal for certain groups of employees, rules on notice periods, consultation duties under internal policies or collective agreements, transfer of undertaking issues, discrimination risks, and severance entitlements. As a result, a legally compliant process requires not only formal documentation, but also a consistent and objectively justified business rationale.

When is it worth seeking legal advice on collective redundancy?

Legal advice is often necessary before any internal announcement is made. For employers, early assessment helps determine whether the planned workforce reduction qualifies as collective redundancy, whether statutory thresholds are met, and what procedural steps must be taken. This is important because errors at the planning stage may affect the legality of later dismissals and expose the employer to claims before labour courts.

Employees may also need legal support if they have doubts about the grounds for termination, the selection criteria, severance, or their protected status. Not every group of employees can be treated in the same way during restructuring. The legal situation of employees close to retirement, on leave, holding union functions, or covered by specific protective provisions may differ significantly from that of other staff members.

For businesses, collective redundancy should be analysed not only from a labour law perspective, but also in the wider context of restructuring, corporate changes, insolvency risk, internal communication, and reputational impact. In cross-border groups, additional issues may arise regarding coordination with foreign entities, management decisions, or consistency with group-level restructuring measures.

A prompt consultation with a lawyer can help avoid procedural mistakes, disputes with employees or trade unions, administrative complications, and financial exposure. It may also reduce the risk of unlawful dismissals, claims for reinstatement or damages, and allegations of unequal treatment or abuse of rights. In practice, timely legal review often makes it possible to organise the process in a way that is both legally compliant and operationally manageable.

Support from a law firm in matters related to collective redundancy may include in particular:

assessment of whether the planned dismissals meet the statutory criteria for collective redundancy,
preparation of a legally sound redundancy strategy and timetable,
drafting notices, resolutions, internal regulations, and communication documents,
support in consultations with trade unions or employee representatives,
advice on employee selection criteria and protected employee categories,
verification of severance and other employee entitlements,
representation in disputes before labour courts,
legal assistance in related restructuring and employment matters.

If you need legal assistance in relation to collective redundancy, contact us.

Collective redundancy