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The Protective Law for Mass Redundancy of Employees (PLMRE) took effect on 7 May 2003. To clarify the application of the PLMRE, the CLA recently issued interpretations as follows:
"Single factory premises" as referred to in Article 2 of the PLMRE means main units of economic activity (such as factories, offices, or branches), determined by whether they are the subject of separate accounting records, or are operational entities able to separately un-dertake various business registrations. Being "the subject of separate accounting records" means that they have accounting records cer-tified by the tax authorities. Being an "opera-tional entity able to separately undertake various business registrations" includes all kinds of registration certificates applicable to profit-seeking entities, regardless of whether such registrations have actually been made. If a business entity does not yet have accounting records or is not yet registered, then a deter-mination of an "operational entity able to separately undertake various business regis-tration" will be made according to the actual situation.
Where workers are unwilling to remain in employment in case of a merger or acquisition for personal reasons even though the employer is willing to continue their employment, it is not the PLMRE's intended scope of protection. The PLMRE only applies where an employer needs to reduce its workforce for economic reasons, and workers' employment is termi-nated without their own volition. Therefore workers who decline an offer of continued employment should not be included in the calculation of the number of workers whose employment is to be terminated under the PLMRE.
