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ARTICLE · 02 JUNE 2025

What Are Justifiable Grounds For Downsizing Employees?

As an employer, you may face situations where downsizing becomes necessary. Market changes, reorganizations, technological developments, or economic challenges can lead to the need for reducing your staff.

NorwayEmployment and HR

As an employer, you may face situations where downsizing becomes necessary. Market changes, reorganizations, technological developments, or economic challenges can lead to the need for reducing your staff.

While it's crucial to follow proper procedures ― such as keeping proper documentation, defining the selection pool and criteria, conducting consultation meetings, and complying with formalities at each step — the requirement for justifiable grounds is a key condition for a valid downsizing process.

Without justifiable grounds, a dismissal will be invalid, no matter how properly the process has otherwise been managed. In this blog, we'll explain what the requirement for justifiable grounds entails and how you ensure your downsizing decisions meet legal and ethical standards.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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