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  • Szerző képeVikor Áron

Brace for the impact, avoid mass layoffs

As the economy is slowing down at an increasing rate (what a contradiction!), many companies are already bracing for the impact and are asking what they can do to mitigate the damage. The damage to the companies, and the damage to their employees.

As we saw in 2008/2009, mass layoffs will most probably be inevitable in the coming period, but it is possible to decrease both their occurrence and the number of the people who will be laid off.

In Hungary, employers have only limited possibilities to unilaterally decrease their wage expenses or to rearrange working time even if work comes to a still-stand. However, based on our 2008/2009 experience employees are often willing to cooperate in order to save their jobs on the long run, therefore, instead of dismissing the extra workforce it may be a good idea to negotiate and agree with the employees

  • a decrease of working hours (with the simultaneous decrease of their salaries),

  • work from home arrangements,

  • bonus cuts,

  • unpaid vacation,

  • immediately taking of paid vacation

  • working time cycles (enabling the employer to use the current idle time later).

In most cases, employees expect something in return for such agreements, e.g. a commitment that they will not be dismissed for a certain period of time, etc.

We can help you with elaborating all that. And sadly though, but if necessary, with mass layoffs, too.

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