Organizational Changes and Notice

We have already informed you about the way how the scope of redundant employees has to be determined in the decision of the employer about organizational changes.

This time we will refer to you about a decision of the Supreme Court of the Czech Republic (Reference Number 21 Cdo 695/2014) in which the Supreme Court expressed its opinion on a question of existence of organizational changes.

According to the opinion of the Supreme Court, the organizational change has to pursue a change of the tasks of the employer or of the technical equipment or reduction of the number of employees for the purpose of the improvement of work efficiency. Organizational change can also aim at regulation of the number of the employees or their professional and qualification abilities, in order to employ only such a number of employees of certain professional and qualification abilities that complies with his needs.

If the employer decides about organizational change from the above mentioned reasons, the employer is entitled to give a notice to the employee in accordance with Sec. 52 letter c) of the Labour Code. The fact that the pursued effect of the organizational change will not be reached or that the organizational change will be later seen as ineffective does not matter.