Question: Can an employer terminate an employee due to organizational restructuring if the employee is also experiencing performance issues? Answer Yes, provided that the termination genuinely results from organizational restructuring and fully complies with Article 42 of the Labour Code 2019. An employee’s participation in a Performance Improvement Plan (PIP) or ongoing performance evaluation does […]

Question: What procedures must an employer follow before terminating employees due to organizational restructuring? Answer Termination of employment due to organizational restructuring is subject to strict procedural requirements under the Labour Code 2019. Failure to comply with these requirements may result in the termination being deemed unlawful. Before terminating employees, the employer should: Prepare a […]

Question: Is an employer required to appoint employees affected by a corporate restructuring to newly created positions? Answer No. Under Clause 3, Article 42 of the Labour Code 2019, where an employer restructures its organization, adopts technological changes, or faces economic difficulties, it must give priority to retraining and retaining employees if suitable positions are […]

Question  Is an employee entitled to a job loss allowance if they are reassigned to a new position during a corporate restructuring? Answer Generally, the answer is no. Under Clauses 1 and 3, Article 42 of the Labour Code 2019, where an employer restructures its organization, adopts technological changes, or faces economic difficulties, it may […]