To what extent can employers implement the following cost-reduction strategies as a result of COVID-19, and what are the primary limitations on each?
As customarily provided by the applicable NCBA or in accordance with any emergency laws (e.g. the abovementioned parental leaves) that may apply.
- Salary reductions.
Both individual and collective dismissals for objective reasons are prohibited until 17 August 2020 (subject to further extensions).
- Facility closure.
Given that the emergency regulations have finally provided for the option of using the temporary layoff fund for a maximum of 18 weeks, it is possible to close the plants for the whole period, since employees are guaranteed 80% of the salary, to be paid by INPS (National Social Security Authority).