Measures in the event of mass redundancies

Plant closures and mass redundancies entail many problems, both on a professional, and on a personal level. Timely and professional support for jobseekers is crucial to allow them to find another job. However, not all companies are able to offer such professional support. They can therefore contact the competent cantonal authority.

Procedure

As soon as the mass redundancies are announced, the company contacts the competent cantonal authority to define support for employees who are likely to lose their jobs. The support plan is then prepared to best respond to the needs of employees in order to guarantee a professional and smooth transition.

Financing

The unemployment insurance can finance some of the proposed measures and will take account of the company's financial situation and the cost of the measures.

The request for financing must be validated by the canton and forwarded to SECO at least one week before the measures start.

Support measures

There are three types of measures that can be covered by the unemployment insurance:

Group courses

This is the most common measure. Group courses give participants the knowledge and tools they need to look for work and to carry out a skills assessment, for example. Depending on needs, other types of courses to help people find work are possible.

Internal labour market centre (ILMC)

Through the internal labour market centre, we work together to solve problems at an early stage. The main objective of this centre, which is set up as soon as the redundancies are announced, is to avoid people who are laid off ending up unemployed.

The ILMC

informs those affected about the impact of redundancy and the steps to take in the company as soon as possible;
provides advice on and assistance with looking for another job, already during the notice period;
if appropriate, informs people about training available to improve their chances of re-entering the labour market.

The ILMC is usually managed by the company's HR department, in close collaboration with the RAV (regional employment office). If your company does not have the specialists necessary to manage an ILMC, we recommend you contact an external HR consulting company.

Induction grants (IGs)

Jobs may also be at risk if a company introduces new products or production techniques voluntarily or as part of a takeover, which means that employee requirements change.

In such cases, it is possible that the affected company cannot afford the training costs required and is therefore forced to lay off its existing employees and then recruit new, appropriately qualified staff.

The unemployment insurance can offer collective induction grants (IGs) to help cover the financial costs of inducting staff into new production processes on an exceptional basis.

Conditions for IGs
Collective IGs can be paid to people who, while not unemployed, would lose their job without this scheme. The conditions for granting of collective IGs are the same as for unemployment insurance. This measure is aimed at people for whom finding another job may be complicated due in particular to their age or inappropriate or highly specialised occupational skills.

What SECO doesn't cover
The measures to be taken in the event of mass redundancies exclude the following:

Services provided by the company itself (particularly internal training, salaries of HR staff)
Measures that are very expensive or customised
Courses that have already taken place (no retroactive benefits)

More information and contact

If you would like further information, please contact the competent cantonal authority.