The Voluntary Leave Program (hereinafter: VLP) is in fact a non-statutory regulation defining the mode of termination of employment relationship with a group of employees based on the agreement of the parties. According to the thesis presented by the Supreme Court in one of its rulings, the employer may introduce a VLP instead of launching the procedure of group layoffs and thus avoid the rigors predicted for in the Act on special rules for termination of employment relationships with employees for reasons not related to the employees (commonly: the Act on group layoffs).
VLP regulations
The rules and procedure of the VLP are established by the employer in the internal regulations. Due to the fact that the VLP is not embedded in the Labour Code or any other act, the employer can practically freely shape the model in which the VLP will be implemented. The employer may indicate different ways of implementing the VLP, depending on the reason for which the employment relationship will be terminated. Most commonly, in context of the VLP, the employment relationship is terminated on the basis of reasons attributable to the employer. Moreover, the regulations should include the amount of severance pay or other additional benefits related to the acceptance of the VLP by employees.
VLP and group layoffs
With a VLP, the employer can avoid a restrictive process associated with group layoffs. Therefore, among other things, the lack of consultation with the company trade union organization does not entail any legal consequences. What is more, since the termination of the employment relationship is based on the agreement of the parties, the procedure for terminating the cooperation is shaped in a consensual way and thus the employee’s appeal to the labour court would not be effective.
VLP may prove to be less effective than group layoffs, due to their lack of compulsory nature. On the other hand, however, a VLP is a model perceived better by the public due to its consensual overtone, and more favorable to the employer in terms of image.
It is worth pointing out that group layoffs allow the employer to clearly define the criteria on the basis of which he plans to terminate the employment relationship with a given group of employees. The VLP regulations may also indicate specific preferences of the employer, but it is not guaranteed whether a given group of employees will actually accept the content of the proposed agreement.
Certainly, the statutory model of group layoffs involves more pressure from the formal side. However, it should not be forgotten that the employer, when shaping the VLP regulations, must also show a great deal of commitment in order to introduce the VLP in a complete and unquestionable way.
In principle, the choice between group layoffs and voluntary leave program depends on which solution is more appropriate for the workplace. Nevertheless, the VLP cannot be denied legal force, as confirmed by the position of the Supreme Court mentioned in the introduction.
Author: Oliwia Kruczyńska, Junior Associate at Kolecka & Partners Law Firm LLP
