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What is a collective dismissal? And Its legal ground?

Updated on September 21, 2020

It is the termination of the contract affecting at least two or five employees, depending on whether the company has between 2 to 50 or more than 50 employees, and this simultaneous termination has to be within three months.

The reasons for those terminations have to be at least one of the following:

  • Definitive closure of the company; Bankruptcy
  • Closure of one or more departments
  • Reduction in staff for structural, technological or market reasons

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