This memorandum provides an overview of the general labour law situation and the potential pitfalls with respect to substantial redundancies. It is not a substitute for a thorough legal evaluation of an intended restructuring in a particular case. Special requirements which may arise from applicable collective bargaining agreements or existing works council agreements cannot be taken into account. Regarding the preconditions and legal consequences of the employer's decision to reduce personnel, a distinction must be made between collective labour law (employer-works council relationship – cf. no. 1) and individual labour law (employer-employee relationship – cf. no. 2).
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