Collective Redundancies

Introduction

The weak business conditions have resulted in many companies being compelled to reduce their costs. Such reductions can be achieved in several ways, but will in most situations affect the employees, who typically constitute a significant part of the costs.

When the employer chooses to terminate the employment of many employees within a period of 30 days, the redundancy procedure must comply with the Danish Act on Advance Notice etc. in connection with Collective Redundancies (Act No. 414 of 1 June 1994 - hereinafter the "Collective Redundancies Act"). The Act constitutes the Danish implementation of the Council Directive 98/59/EC on the approximation of the laws of the Member States relating to collective redundancies.