Economic crisis

AMS warns employees about Emco plans

Emco's restructuring plans are shaky(Bild: MARKUS TSCHEPP)

The turmoil surrounding the company Emco is now calling the Salzburg Public Employment Service into action: AMS Salzburg recommends that companies take educational leave in this situation. And advises companies against offering suspension contracts.

Even on the fourth day after a controversial letter from the management became public, the furor surrounding the Hallein-based company Emco shows no signs of abating. Yesterday, the Chamber of Labour already criticized Emco's plan to terminate employees with re-employment promises by mutual agreement. According to Emco, the employees should receive their money from the state - i.e. the AMS - and could start working for the company again in better times.

The AMS is now also warning against this. Regional Managing Director Jacqueline Beyer says: "We examine each case individually, but in the case of suspension contracts, where reinstatement is guaranteed, it may be that there is no unemployment." This means that those affected would have no entitlement to unemployment benefit.

In addition, if the employees sign such an agreement, they would lose their claims from the insolvency fund if the company goes bankrupt.

Further training and part-time employment
Jacqueline Beyer recommends: "A consultation has taken place at Emco. We recommend offering educational leave." On the one hand, employees would be able to take advantage of further training, re-employment would not be a problem and, in addition, those receiving the parental leave allowance could continue to work part-time at Emco.

In the case of educational leave, proof of further training must be provided. The AMS generally advises all companies against suspension contracts due to the risks involved. Emco did not receive a statement from the milling machine manufacturer, despite the promise of a statement.