Collective Redundancies – How to Protect Your Business from Them?

Although the Polish labour market may appear stable, recent years have shown that collective redundancies occur even in the largest corporations. Sectors such as manufacturing, administration, energy production, construction, and retail are all recording declines in employment. Analysts note that the sectors most exposed to collective redundancies are those that are heavily automated or experiencing a drop in demand.

By the end of March 2024, 159 companies had announced collective redundancies expected to affect approximately 17,000 employees. Despite alarming reports, the scale of redundancies is smaller than in 2023, yet still high given the very low unemployment rate.

Risks Associated with Collective Redundancies

Collective redundancies can significantly affect a company's reputation. Negative coverage in the media and on social platforms can erode the trust of clients and business partners. Reputational damage may have long-term consequences, making it harder to attract talent and collaborate with other companies. The image of an employer unable to maintain employment stability can deter both current and prospective employees.

The costs associated with collective redundancies can be substantial. They include severance pay for dismissed employees, the cost of recruiting and training new staff, and potential productivity losses during the transition period. Additionally, companies may incur extra costs related to legal advice and potential court proceedings if the redundancies were not carried out in accordance with applicable regulations.

Incorrectly conducted collective redundancies can lead to serious legal consequences. The regulations governing collective redundancies are complex, and breaching them can result in heavy financial penalties and lawsuits. Companies must be aware of their legal obligations — properly informing employees, consulting employee representatives, and adhering to deadlines and procedures. Failure to comply with the law can lead to prolonged legal disputes and significant financial burdens.

Given these risks, it is no surprise that companies try to avoid collective redundancies wherever possible. It is worth considering alternative solutions that allow for flexible human resource management and prevent the need for collective redundancies. Gremi Personal offers comprehensive services that help companies maintain employment stability and minimise the risks associated with workforce reductions. Through a flexible cooperation model, full care for employees, the possibility of transferring workers between clients, and legal support, we can help your company avoid these unpleasant and costly situations.

Here are the key aspects of Gremi Personal's services that can help prevent collective redundancies:

Flexibility in Employment

Seasonal industry patterns and dynamic labour market changes make it challenging to predict exactly how many workers are needed. Relying solely on direct, permanent recruitment makes it easy to underestimate or overestimate the required headcount. The best solution in such a situation is to hand this challenge over to specialists with experience in the temporary staffing sector. If the demand for workers at your company decreases, we will simply transfer them to another client — no redundancies will take place.

Gremi Personal offers flexible employment models that enable companies to respond quickly to changing staffing needs. Simply let us know that you need to increase or reduce your workforce, and we will handle the rest. This way, your company avoids costly collective redundancies and their negative consequences, while maintaining full operational continuity.

Individual Approach to Each Client

Every company has different needs and challenges, which is why at Gremi Personal we focus on an individualised approach to each client. We begin our cooperation with a conversation in which we learn about the company's needs, challenges, and expectations. Based on this, we propose appropriate services from our wide range of offerings. We also ensure legal security, allowing our clients to focus on their core business while saving time and resources.

This individual approach means that the service we offer is tailor-made — precisely matched to the needs of each client. Combined with the flexibility described above, it enables us to provide comprehensive support to our clients in addressing staffing shortages.

Full Employee Care and Legal Security

One of the key elements that sets Gremi Personal apart from other employment agencies is its comprehensive care for employees — both in legal and day-to-day matters. Our approach ensures that employees can focus on their work and employers can focus on growing their business.

Gremi Personal provides full support from a coordinator and a legalisation specialist who assist employees with necessary documentation, accommodation, commuting, and advance payments. Our multilingual coordinators help employees settle into their new working environment, ensuring that the onboarding process runs smoothly and without complications. We resolve employee problems, which in the long run contributes to employment stability and reduces the risk of collective redundancies. That is why, when demand at one client decreases, we simply find our workers another job.

Hiring foreign nationals without expert support makes it easy to inadvertently break applicable regulations. Thanks to its own legal department and 16 years of experience in the foreign labour market, Gremi Personal guarantees full legal security. Our experts have an excellent command of labour law, are familiar with the available forms of employment, and have experience working with supervisory bodies such as ZUS, US, and PIP. We also know how to handle workplace accidents and other crisis situations. As a result, our clients can be confident that all formalities are in order and that they are protected from potential legal problems — which positively affects business stability and helps avoid drastic steps such as collective redundancies triggered by penalties for failing to meet key regulatory requirements.

Our clients do not need to worry about fulfilling all legal formalities. We take full responsibility, allowing employers to focus on their core operations. Our extensive experience and team of experts enable us to pass all inspections successfully, giving our clients peace of mind and the confidence that hiring foreign nationals is handled in full compliance with the law.

Transparent Costs

One of the greatest challenges in personnel management is assessing all hidden and additional employment costs. Gremi Personal offers its clients a flat rate per actual working hour, with no additional charges. This approach allows for precise budget planning up to a year in advance, which is extremely important in a rapidly changing market environment.

Polish employment law can be complex, which often poses a challenge for business owners. We take on all the formalities and responsibilities associated with hiring, providing fair and clear billing terms under the cooperation agreement. The client receives a single invoice per month, which simplifies administrative processes and allows them to focus on the company's strategic goals.

Cooperating with Gremi Personal enables companies to minimise the costs of filling staffing gaps. Thanks to our established market position, we can offer clients favourable cooperation terms. We propose a flat rate for every working hour, with no hidden costs. This model allows for precise budget planning up to a year ahead, which is extremely important in a dynamic and ever-changing market environment.

Summary

Flexibility of employment, comprehensive employee support, an individual approach to each client, legal security, and transparent costs are the key elements that help companies avoid collective redundancies. Through its services, Gremi Personal enables businesses to optimise their HR processes and respond to dynamic labour market changes, translating into long-term stability and growth.

If your business could benefit from working with an employment agency, take a look at our offer and find out how our services can support your company in achieving its goals.