H30･10･31 at Tokyo District Court

【Judgement】 lawful dismissal

【Company】 Mylan

【Category】 RIF

【Reference】 Rodo Keizai Hanrei Sokuho 2373-24

【Position/Salary】 MR / JPY 6M

【Summary】

Due to the transfer of business operations resulting from a business alliance, the positions that 173 employees of the defendant, comprising more than 40% of the workforce, were supposed to occupy no longer existed within the defendant's organization. Therefore, it can be said that there was a rational necessity to reduce the redundant personnel.

However, considering that the dismissal in this case was not due to financial hardship but rather a strategic business decision, it should be held that in order for there to be an objectively reasonable justification for the termination, corresponding efforts to avoid the dismissal must be duly exhausted.

The Defendant, facing an extraordinary situation with a surplus of personnel exceeding 40% of its total workforce, took multiple significant dismissal avoidance measures within the limitations of its existing personnel system and the challenges of transferring employees to other roles. Despite these efforts, the Plaintiff failed to seriously consider these measures and ignored the Defendant's attempts to engage in further discussions. As the Plaintiff's cooperation was unattainable, the Defendant was unable to take any further measures beyond those already implemented. Therefore, even considering the fact that the need for personnel reduction was solely based on business decision, the Defendant can be deemed to have taken appropriate dismissal avoidance measures and exerted its utmost efforts to avoid dismissal.