What happens if a business is losing money and can’t afford to employ its whole staff? Do they have to shut the whole business down instead of letting a certain percentage of underperformers go without cause? How is that handled in Europe?
I am genuinely asking because I have only ever experienced American employment.
It depends on the country but in germany, below 10 employees you have at will employment. Everyone else is only allowed to employ as many employees as they can afford. If your company is in crisis, you can ask the government for an emergency exemption to lay off a certain amount of people while making sure that they get new jobs asap (the employment agency works with them to qualify laid off employees so they find new employment fast).
The important part is that there is always a reason why someone is underperformant. If its not on purpose, the employer must make a case or find agreement with the employee which is often done.
Its really no big deal and the giant german corporations that compete internationally are evidence that it works.
The difference is that the employer is not godlike as they apparently are in the US.
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What happens if a business is losing money and can’t afford to employ its whole staff? Do they have to shut the whole business down instead of letting a certain percentage of underperformers go without cause? How is that handled in Europe?
I am genuinely asking because I have only ever experienced American employment.
If a business can’t afford its staff it shouldn’t exist at all
Yeah rather than laying off a portion of the people it makes more sense to lay off everyone!
It depends on the country but in germany, below 10 employees you have at will employment. Everyone else is only allowed to employ as many employees as they can afford. If your company is in crisis, you can ask the government for an emergency exemption to lay off a certain amount of people while making sure that they get new jobs asap (the employment agency works with them to qualify laid off employees so they find new employment fast).
The important part is that there is always a reason why someone is underperformant. If its not on purpose, the employer must make a case or find agreement with the employee which is often done.
Its really no big deal and the giant german corporations that compete internationally are evidence that it works.
The difference is that the employer is not godlike as they apparently are in the US.
Edit: source: I worked for the employment agency.