Koondumine

Koondumine is the act of reducing a company's workforce by laying off employees, typically as part of restructuring, cost-cutting, or financial difficulties. It can affect all staff or only a portion and may be planned or the result of adverse conditions.

The term comes from the Estonian koondama, meaning to gather or consolidate, with koondumine as the noun describing the process of bringing people or resources into a new arrangement. It can also refer more broadly to consolidation of operations.

In Estonia and many other contexts, koondumine is governed by employment law and collective agreements. Employers usually must justify layoffs, apply objective selection criteria, provide notice, and seek to minimize redundancies through retraining or redeployment where possible.

Procedural requirements commonly include consultation with employee representatives or unions, transparency about the reasons and methods of layoffs, and arrangements for severance pay, unemployment benefits, or social support programs where available.

For employees, koondumine means job loss and the potential for unemployment benefits, job placement services, and retraining. For the employer, it is a strategic decision intended to ensure long-term viability but carries legal and reputational risks if not properly implemented.

The exact definition and procedures vary by country, sector, and contract, so local laws should be consulted for precise rules.