Restructuring legislation: 2023–2025 developments

EU Member States often allow special protection for certain groups of workers to prevent unfair treatment and discrimination. For instance, employee representatives are a group that typically enjoys special dismissal protection as a way to ensure that they can effectively carry out their role without the fear of employer reprisal. In both Belgium and Slovenia, recent legislative changes have strengthened these protections.

In Belgium(opens in new tab)This link opens in a new tab, the age that terminates legal protection against dismissal of employee representatives on works councils and on occupational safety and health committees will be raised: from 65 to 66 in 2025 and then to 67 in 2030, aligning with changes in the statutory retirement age.

In Slovenia(opens in new tab)This link opens in a new tab, the Employment Relationship Act was amended to extend the dismissal protection for employee representatives following high-profile cases involving such workers. The amendment provides that, if the termination is challenged in a court, the employment contract of employee representatives may be extended until the dispute has been resolved in the first-instance labour court, or for a maximum of six months.

It is also common for employees to receive special protections during pregnancy or fertility treatment. In Belgium(opens in new tab)This link opens in a new tab, a new law introduced dismissal protection for employees undergoing fertility treatment or a medically assisted reproduction programme. Henceforth, Belgian employees can benefit from dismissal protection for up to two months from the moment the employer is informed of the employee’s participation in a fertility programme, supported by a medical certificate, unless the employer can prove unrelated reasons.

Unemployment benefits serve as a vital safety net, mitigating income loss for workers who lose their jobs. Recent changes introduced in Croatia, Lithuania, and Slovenia allow workers to access unemployment benefits and other support measures under more favourable conditions.

In Croatia(opens in new tab)This link opens in a new tab, workers under 30 will have easier access to unemployment benefits. For these workers, the required period of prior employment has been reduced from nine to six months within the last 24 months. Additionally, the unemployment benefit amount has been increased. Similarly, in Lithuania(opens in new tab)This link opens in a new tab, employees dismissed due to bankruptcy with five or more years of service are entitled to a long-term employment benefit. Previously, this benefit was only available to employees dismissed in the event of their employer’s insolvency, which was deemed unfair. In Slovenia(opens in new tab)This link opens in a new tab, the Guarantee Fund – used to protect employees’ claims for unpaid wages in the event of their employer’s bankruptcy or insolvency – now covers the last six months’ wages, as opposed to only the last three, as before.

In contrast, the benefit amount in Finland(opens in new tab)This link opens in a new tab has been lowered, and the employment criterion for eligibility has been extended from six to twelve months. Additionally, it has been specified that participation in employment-promoting services no longer counts towards the employment criterion. These changes make it more difficult for employees to access unemployment benefits, potentially increasing financial insecurity for those experiencing job loss.

In the context of restructuring, employee training and skill development measures may be necessary to help workers adapt to new or changed roles. Under the Directive on Transparent and Predictable Working Conditions (adopted in 2019), Member States must ensure that when training is required by EU law, national law, or collective agreements, such training shall be free of cost to the worker and be considered working time. Recent updates to the database reveal that several countries, including the Netherlands(opens in new tab)This link opens in a new tab, France(opens in new tab)This link opens in a new tab and Austria(opens in new tab)This link opens in a new tab have transposed the directive through specific articles in national law that require employers to provide necessary training for free.

Finland(opens in new tab)This link opens in a new tab also made recent legislative changes on the topic of employee training and skill development. Notably, the tax deduction directed at employers to offer training has been removed as it failed to achieve the objectives set for it. This development may limit employers’ incentive to provide employee training and, hence, workers' access to employer-provided training and skill development.

Finland(opens in new tab)This link opens in a new tab has, moreover, introduced simplification measures aimed at reducing the administrative burden for small and medium enterprises and speeding up companies’ ability to react to market changes. Notably, the threshold for the application of the Cooperation Act, which governs consultations and cooperation between employers and employees, has been increased. Previously applicable to employers with more than 20 employees, the threshold is now set at 50 employees. However, the Act still lays down certain obligations for employers that regularly employ 20-49 people. While these changes may improve operational conditions for smaller businesses and therefore enhance their competitiveness, they also weaken trade unions' influence over restructuring processes within these companies, posing potential challenges from a worker’s perspective.