Real and earnest nature of the dismissal

Constanta Court of Appeal ruled that, in accordance with Art. 65 of the Labour Code, in the case of dismissal for reasons related to the employee, the dissolution of the position held by the employee to be effective and have a real and earnest cause. The Court held that the abolition of employment is effective when the position is withdrawn from the list of potion or the organizational sheet of the company. It must also represent a real and earnest cause for financial loss with the company, proven by way of the balance sheet, which imposes drastic measures to cut spending and demands corporate restructuring. The court also stated that the decision to restructure and opportunity of measuring costs reduction of by way of staff cuts, in other words the new organizational structure in selecting positions that have been removed, is the exclusive power of the Board and AGM bearing responsibility for ensuring sustainability and economic efficiency of the company, the court being unable to supress but can only check whether the implementation of these measures is carried out lawfully. Decision no. 277/CM of April 3, 2012 rendered by the Court of Appeal Constanta with regard to the request for annulment of the decision to dismiss.

Dan Alexandru NEGRU

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