CLA No 109 introduces the obligation to justify a dismissal and defines dismissal that is manifestly unreasonable. The main points of CLA No 109 are highlighted below.
On 1 April 2014, CLA No 109 concerning the justification of dismissals entered into force. Employers in the private sector are now obliged to provide justification for a dismissal at the employee's request. Employees are also better protected against manifestly unreasonable dismissal.
Justification for dismissal
As from 1 April 2014, employers have been obliged to justify a dismissal at the request of the dismissed employee. Employees have the right to know the specific reasons which formed the basis for their dismissal. CLA No 109 provides for strict time constraints, both for the request by the employee and for the response from the employer.
A dismissed employee will be entitled to compensation of two weeks' remuneration if his/her employer does not justify the dismissal or does not do so in a timely manner.
Manifestly unreasonable dismissal
CLA No 109 defines a dismissal which is manifestly unreasonable as the dismissal of an employee with a labour agreement of undefined duration, based on reasons which are not connected to the employee's suitability or behaviour, or based on reasons which do are not related to the functioning of the company, institution or service, and upon which a normal and reasonable employer would never have decided.
Although the commentary on CLA No 109 contains some clarification of the term "manifestly unreasonable dismissal", the question arises as to how case law will interpret the concept. It seems likely that judges will fall back on the earlier system concerning unfair dismissal, in which the wording is very similar.
If a dismissal is manifestly unreasonable, the dismissed employee will be entitled to additional compensation of between 3 and 17 weeks' remuneration.
CLA No 109 is addressed to the private sector, but it is not always applicable. For example, CLA No 109 is not applicable during the first six months of employment; in the case of a collective or multiple dismissal; or in the case of dismissal in the context of reaching the legal retirement age. Several other exceptions apply, so it will be important to check first whether or not CLA No 109 is applicable.
CLA No 109 does not apply to the public sector, but a similar regulation for the public sector is being prepared.