Restructuring and redundancies: planning employment law capacity

Short answer: A redundancy programme that reaches the collective dismissal threshold follows four steps in Switzerland and Germany: consulting or informing employee representatives, notifying the authority, negotiating a social plan and compensation, and implementing the dismissals. In Switzerland, a collective dismissal exists from 10 terminations within 30 days in establishments with 21 to 99 employees (Art. 335d of the Code of Obligations, OR). In Germany, notice to the Federal Employment Agency is required for more than 5 dismissals within 30 calendar days in establishments with 21 to 59 employees (section 17 of the Dismissal Protection Act, KSchG). Errors in these steps delay the end of employment or make dismissals open to challenge.

This guide is for HR directors, general counsel, heads of legal and management teams preparing a restructuring in Switzerland or Germany. It covers the collective dismissal process, the workstreams and the effort they involve, the team you need, and data protection and communication.

Collective dismissal in Switzerland: thresholds and consultation

Under Art. 335d OR, a collective dismissal exists where an employer gives notice within 30 days, for reasons unrelated to the individual employees, to a certain number of staff:

• at least 10 employees in establishments with more than 20 and fewer than 100 employees,
• at least 10% of employees in establishments with at least 100 and fewer than 300 employees,
• at least 30 employees in establishments with 300 or more employees.

Process under the Code of Obligations

1. Consultation (Art. 335f OR): the employer consults the employee representatives or, if there are none, the employees. It gives them the opportunity to make proposals and informs them in writing of the reasons, the number of dismissals, the number of employees and the period. A copy goes to the cantonal employment office.
2. Notification (Art. 335g OR): after the consultation, the employer notifies the cantonal employment office in writing, including the results of the consultation.
3. Effect: employment relationships that have been terminated end no earlier than 30 days after this notification, even if the contractual notice period would expire sooner.
4. Social plan (Art. 335h and 335i OR): an employer that normally employs at least 250 people and intends to dismiss at least 30 within 30 days must negotiate a social plan.
5. Dismissals: the statutory notice periods of 1, 2 or 3 months to the end of a month apply depending on length of service (Art. 335c OR), unless otherwise agreed. After the probation period, notice given during pregnancy or in the 16 weeks after birth is void (Art. 336c OR).

Art. 335f OR does not set a minimum duration for the consultation. Plans should therefore allow enough time for employees' proposals to be genuinely considered; agree the appropriate period for the specific case with employment law advisers.

Collective dismissal in Germany: notification and works council

In Germany, the employer must notify the Federal Employment Agency before dismissing a notifiable number of employees within 30 calendar days (section 17 KSchG):

• more than 5 employees in establishments with 21 to 59 employees,
• 10% of the regular workforce or more than 25 employees in establishments with 60 to 499 employees,
• at least 30 employees in establishments with 500 or more employees.

Other terminations initiated by the employer, such as termination agreements, count towards the threshold. Members of governing bodies, and managing directors, plant managers and similar senior staff who may hire or dismiss on their own authority, do not count (section 17(5) KSchG).

Process under the KSchG and the Works Constitution Act (BetrVG)

1. Informing the works council (section 17(2) KSchG): in writing, covering the reasons, the number and occupational groups of those to be dismissed and of the regular workforce, the period, the selection criteria and the criteria for severance; followed by consultation on how dismissals can be avoided or their effects mitigated.
2. Reconciliation of interests and social plan (sections 111 and 112 BetrVG): in companies with normally more than 20 employees entitled to vote, the works council must be informed of a planned operational change in good time and in full, and consulted. If no agreement is reached, either side can refer the matter to the conciliation board (Einigungsstelle). Where the change consists solely of job cuts, a social plan can only be imposed above the thresholds in section 112a BetrVG, for example 15% or at least 60 employees in establishments with 250 to 499 employees.
3. Notification (section 17(3) KSchG): in writing with the works council's opinion, or with evidence that the works council was informed at least 2 weeks earlier.
4. Blocking period (section 18 KSchG): notifiable dismissals take effect before one month after receipt of the notification only with the agency's consent. If they are not carried out within 90 days after that, a new notification is required.
5. Hearing before each dismissal (section 102 BetrVG): a dismissal without hearing the works council is invalid. The works council must raise concerns about an ordinary dismissal within one week.
6. Dismissals: social selection based on length of service, age, maintenance obligations and severe disability (section 1(3) KSchG); notice periods under section 622 of the Civil Code (BGB); special protection, for example under section 17 of the Maternity Protection Act (MuSchG) and section 18 of the Parental Allowance and Leave Act (BEEG).

A notifiable dismissal given without a prior collective dismissal notification is invalid. The Federal Labour Court (BAG) ruled this on 1 April 2026 (6 AZR 157/22), following the CJEU judgment of 30 October 2025 (C-134/24). The same applies where the notification is filed before the consultation with the works council has been completed (BAG, 1 April 2026, 6 AZR 152/22). Errors in the information given in a filed notification, by contrast, do not automatically invalidate the dismissals: if they do not undermine the purpose of the notification procedure, such as a slightly overstated number of planned dismissals, the notification remains effective; the circumstances of the individual case are decisive (BAG, 25 June 2026, 6 AZR 7/26). Experienced employment lawyers should therefore review the notification before any notices are given.

Switzerland and Germany compared

The two procedures follow a similar sequence but differ markedly on thresholds, authority and deadlines. The table summarises the differences with the relevant provisions.

Workstreams and effort

A collective dismissal involves around ten legal and organisational workstreams that overlap in time:

1. Plan backwards from the leaving dates: notice periods, consultation, notification, 30-day or blocking period.
2. Check thresholds: define the establishment, count employees, include terminations treated as dismissals.
3. Set and document selection criteria, including social selection in Germany.
4. Prepare the consultation or information documents.
5. Negotiate or prepare the social plan and reconciliation of interests.
6. Prepare and file the notification with the cantonal employment office or the Federal Employment Agency.
7. Check special protection, such as pregnancy, parental leave, severe disability or works council membership.
8. Draft notice letters, termination agreements and references.
9. Manage communication and data protection.
10. Handle disputes and queries, with external counsel for litigation and the conciliation board.

Effort depends mainly on the number of people affected, the number of sites and countries, whether a works council or employee representation exists, and how much negotiation the social plan needs. How to turn workstreams like these into person-days is shown in legal team capacity planning.

Example (assumption)

A manufacturing company cuts 40 jobs at a German establishment with 300 employees and 15 jobs at a Swiss establishment with 120 employees. In Germany, notification is required (more than 25). A social plan cannot be imposed for pure job cuts, because 40 is below 15% of 300; the reconciliation of interests and consultation still apply. In Switzerland, there is a collective dismissal (at least 10%, i.e. 12), but no duty to negotiate a social plan, as the employer has fewer than 250 employees. The company engages one employment lawyer for Germany (full time, three months) and one legal counsel for Switzerland (50%, two months). All figures are assumptions for illustration.

The team: employment lawyers, HR legal and project management

A restructuring needs three roles working closely together; management decides and steers.

• Employment lawyer: thresholds, procedure, social plan, notification, special protection, coordination with external counsel.
• HR legal specialist: employee data, termination and contract documents, deadline control, references, employee queries.
• Project lead: timetable, coordination between HR, legal, finance and communications, decision papers.

Because restructurings are time-bound, temporary professionals are a good fit. Alpinum Solutions provides employment lawyers and HR legal specialists through staff leasing (Personalverleih in Switzerland, Arbeitnehmerüberlassung in Germany) or freelancing, in Switzerland and Germany, part time or full time, individually or as a taskforce. In staff leasing, the company gives the professional instructions; in freelancing, the professional works independently within the agreed mandate.

Data protection and communication

A redundancy programme involves a lot of sensitive employee data and needs a carefully sequenced communication plan.

Data protection

• Selection lists often contain health data or information on severe disability. These are sensitive personal data (Art. 5(c) of the Swiss Data Protection Act, DSG) or special categories of personal data (Art. 9 GDPR).
• Restrict access on a need-to-know basis, including for external and temporary professionals; do not circulate working lists by email.
• Plan for access requests from employees: in Switzerland usually within 30 days (Art. 25(7) DSG), in the EU within one month (Art. 12(3) GDPR).

Communication

• Involve the employee representatives or works council before the wider workforce, as the procedure requires.
• Agree key messages, questions and answers and the timetable in writing so that managers communicate consistently.
• For listed companies, check whether the job cuts are a price-sensitive fact or inside information that must be disclosed ad hoc (Art. 53 of the SIX Swiss Exchange Listing Rules; Art. 17 of the EU Market Abuse Regulation No 596/2014).

Limits and risks

• No legal advice: Alpinum is not a law firm. The professionals work on behalf of and under the direction of the company; litigation and the conciliation board are handled by external counsel where needed.
• Responsibility stays with the employer: management decides on the cuts, the selection and the social plan.
• Deadline risk: an error in consultation or notification can push back leaving dates. Deadlines belong in a central tracker with a four-eyes check.
• Conflicts of interest: people who are themselves affected should not work on selection lists. External professionals can help here.

Frequently asked questions about collective dismissals in Switzerland and Germany

How many dismissals make a collective dismissal?

In Switzerland, 10 dismissals within 30 days in establishments with 21 to 99 employees, 10% in establishments with 100 to 299, and 30 in larger establishments (Art. 335d OR). In Germany, notification is required for more than 5 dismissals in establishments with 21 to 59 employees, with higher thresholds for larger establishments (section 17 KSchG).

How long does the consultation take?

Swiss law sets no fixed minimum duration in Art. 335f OR; the consultation must allow genuine proposals. Employment then ends no earlier than 30 days after notification. In Germany, without the works council's opinion, notification can be filed no earlier than 2 weeks after informing the works council, followed by a one-month blocking period (sections 17 and 18 KSchG).

Do termination agreements count?

In Germany, yes: terminations initiated by the employer, such as termination agreements, are treated as dismissals (section 17(1) KSchG), and they also count under section 112a BetrVG. In Switzerland, Art. 335d OR refers to notices of termination given by the employer; the statute does not expressly say whether termination agreements initiated by the employer count. If in doubt, include them in the count and clarify with employment law advisers.

When is a social plan mandatory?

In Switzerland, an employer that normally employs at least 250 people must negotiate a social plan if it intends to dismiss at least 30 within 30 days (Art. 335h, 335i OR). In Germany, the works council can enforce a social plan for an operational change through the conciliation board; for pure job cuts, the thresholds in section 112a BetrVG apply.

Can an interim professional support the restructuring legally?

Yes. Temporary employment lawyers or HR legal specialists can prepare documents, control deadlines, prepare negotiations and draft the notification. Management takes the decisions, and external counsel is usually brought in for litigation or the conciliation board. Clear responsibilities and access rights to employee data are essential.

Next step

If a restructuring needs additional employment law capacity, Alpinum provides employment lawyers, HR legal specialists and project teams. Selected profiles are usually available within 48 hours; the start date of the assignment is agreed between the client and Alpinum.

• Employment and labour law
• Legal team capacity planning
• Building a legal and compliance taskforce
• Discuss your requirements

Last updated: 31 October 2026.