If there are ten employees you need to cut, shouldn't they be cut based on either their recent performance, or a completely random method?
No, because layoffs are position-based. If it's a performance related cull then that's not the same as redundancies. If you want to get rid of people like that then you need ironclad documentation and/or to provide generous packages.
Maybe it's putting lipstick on a pig, maybe it's fairness.
Layoffs (mass dismissal) are very hard, because usually it means the whole region has economic problems, and those that get laid off are especially vulnerable - because they almost by definition work in a sort of dying industry/trade.
When I was made redundant a decade ago in the UK I got:
- week's "consultation period" during which the ranking process for who would be made redundant was explained
- pay in lieu of month's notice
- (optional on behalf of the employer) three month's pay for signing away my right to sue for wrongful dismissal
The only situation in which employees can really lose out is if the company goes bankrupt in which case they are at risk of losing their last paycheque.
Does that kind of situation still confer protections in Germany? If so, how do German manufacturing companies manage to not go bankrupt? Do all the companies subscribe to huge insurance pools?