SECTION 40

(1) The provisions of Section 34 (1) above shall be applicable in the case of dismissal on economic grounds. (2) Dismissal on economic grounds shall mean any dismissal effected by the employer for one or more reasons not inherent in the person of the worker and resulting from an abolition or transformation of posts or an amendment to the contract of employment consequent on economic difficulties, technological changes or internal reorganization. (3) To avoid dismissal on economic grounds, the employer who envisages such dismissal shall convene the staff representatives, where available, to seek with them and in the presence of the Labour Inspector of the area, other possibilities such as : reduction of working hours, shift work, part-time work, lay-off, review of various allowances and benefits and even wage cuts. (4) At the end of negotiations which shall not last more than 30 clear days, and if an agreement is reached, a statement shall be signed by both parties and the Labour Inspector explaining the measures adopted and their periods of validity. (5) Where a worker states in writing that he does not accept the measures referred to in the above paragraph, he shall be dismissed with pay in-lieu-of notice and severance pay, where he meets the conditions for enjoyment thereof. (6) • (a) Where the parties fail to reach an agreement after the negotiations provided for above, or where notwithstanding the measures envisaged certain dismissals are still necessary, the employer must determine an order of dismissals taking into consideration professional proficiency, seniority in the undertaking and the family responsibilities of workers. In any case, the order of dismissals must give precedence to professional proficiency. • (b) To obtain the opinions and suggestions of the staff representatives, the employers shall send them the list of workers he intends the dismiss, explaining the criteria used. • (c) The staff representatives shall be bound to forward their written reply to the employer within no more than eight clear days. • (d) The employer's notification and the reply from the staff representatives shall immediately be sent to the Labour Inspector of the area for arbitration. (7) Staff representatives may be dismissed only if their posts have been abolished and with the consent of the Labour Inspector of the area. (8) In case of a dispute regarding the type or order of dismissals, the onus of proof shall rest with the employer. (9) A dismissed worker shall have prior claim, with equal professional proficiency, to employment in the same establishment for a period of two years. (10) An order of the Minister in charge of Labour issued after consultation with the National Labour Advisory Board shall determine the terms and conditions of enforcement of the present section.