ECJ Ruling Invalidates Mass Dismissals Due to Notification Failures

On October 30, 2025, the European Court of Justice (ECJ) delivered two significant rulings regarding mass dismissals, known as collective redundancies, under European Union law. The court determined that technical errors or failures to comply with notification requirements render such dismissals invalid. This judgement emphasizes the necessity for employers to strictly follow notification and consultation procedures, even in cases of insolvency.

Key Findings of the Rulings

The ECJ’s decisions highlighted that dismissals are invalid if the prior notification requirements outlined in EU Directive 98/59/EC and applicable national laws are not met. In the two German cases, the court found that inadequate or incomplete notifications to the relevant public authority resulted in the invalidity of the dismissals. The ECJ asserted that proper notifications and adherence to consultation requirements must occur before any dismissals can take place, and employers cannot rectify noncompliance retroactively.

Both cases revolved around the interpretation of the EU Collective Redundancies Directive 98/59/EC, specifically addressing whether a failure to provide advance notice of intended mass layoffs or an incomplete notice renders the dismissals invalid. According to the directive, notification must be submitted to the competent public authority, and dismissals cannot take effect until at least thirty days after this notification. This “standstill” period is designed to allow authorities to seek solutions and explore alternatives to mitigate the impact on affected employees.

In the specific cases referred to the ECJ, the German Federal Labour Court (Bundesarbeitsgericht) sought guidance on the implications of noncompliance with these notification requirements. Notably, neither German law nor the EU Directive provides penalties for failing to issue proper notifications.

Case Details and Implications

In the first case, designated as C-134/24 (Tomann), the employer did not notify the relevant employment agency prior to dismissing employees. In the second case, C-402/24 (Sewel), the insolvency administrator submitted a mass dismissal notification that lacked final statements from the works council and omitted details regarding the status of consultations, as mandated by German law.

The rulings reinforce the obligations of employers to comply with notification and consultation procedures under both national laws and the EU Directive 98/59/EC before proceeding with mass layoffs. Importantly, the ECJ clarified that any failure to meet these requirements results in the invalidity of the dismissals, and employers are not permitted to correct such failures at a later stage.

As every EU member state has implemented Directive 98/59/EC into their national laws, the rulings carry significant weight for reorganizations across the region. Each country has established its own thresholds for when mass dismissal notifications must be filed and the specific procedures to follow, highlighting the importance of strict adherence to these regulations to protect employees’ rights during collective redundancies.

Employers within the EU must now review their practices in light of these rulings to ensure compliance and avoid potential invalidation of mass dismissals should they occur.