The reform of the Co-operation Act, coming into effect in July 2025, brings significant changes that will directly impact how organisations prepare for and implement personnel-related changes. While the reform aims to reduce the administrative burden, especially for SMEs, it also challenges organisations to renew their change management practices.
The importance of preparation is emphasised as negotiation periods are cut in half
Negotiation periods will be halved: in cases involving fewer than 10 lay-offs, the negotiation period will now be 7 days, and in cases involving more than 10 lay-offs, it will be 21 days. At the same time, the applicability threshold for the Co-operation Act will rise to 50 employees. However, smaller companies with 20–49 employees will still be required to engage in dialogue and conduct change negotiations in certain extensive redundancy situations.
It is important to note, however, that the new Co-operation Act still requires and allows sufficient time to fulfil the negotiation obligation. In practice, this means that organisations must place even greater emphasis on thorough pre-planning and preparation, not because there is too little time, but because the success of the negotiations depends on being well prepared.
Change management is crucial
Research shows that uncertainty and the loss of a sense of control are key stress factors during times of change. As change processes become more condensed, leaders and managers must be able to communicate clearly, engage with employees in a humane and empathetic way, and build trust to help the organisation remain resilient and operational.
The quality standards for co-operation negotiations remain high, requiring even more thorough preparation and the right skills and competencies from managers, especially under pressure. Without proper support and training, people may be left to navigate challenging situations alone, putting the organisation’s overall change readiness at risk.
Change management is not merely an operational task; it is a critical success factor. At its best, it supports employee wellbeing and fosters the capability, willingness, and readiness to build a new future, while also enhancing the company’s reputation.
Caring for departing employees is an investment in the future
The reform also highlights the growing need to invest in high-quality change security services. As general uncertainty increases and re-employment periods lengthen across many sectors, there is a rising demand for personalised support, both during and after change negotiations. Career coaching is not an additional service but an essential part of a responsible, goal-oriented change process that fosters renewal.
Collaboration with a change security partner should begin even before the official start of co-operation negotiations. Proactive planning enables a smoother process, reduces risks, and supports both those affected by redundancies and the long-term resilience of the organisation.
Five key perspectives for successful change after the Co-operation Act reform
- Start preparation early – Shorter negotiation times leave no room for improvisation.
- Coach management and supervisors – The right and sufficient skills of management and supervisors determine how the change is perceived.
- Invest in communication and participation – Openness reduces uncertainty and increases trust. Change agility benefits the entire organisation.
- Offer individual career coaching – High-quality support for employment is part of responsible downsizing, which also matters for the remaining staff and employer image.
- Choose an experienced partner – Strong expertise and smooth collaboration bring solutions, structure, and humanity to the change process, both during and after the change.
Do you need support for change negotiations? Contact us