A collective dismissal is defined as a redundancy related to economic or technical reasons or reasons linked to production. This means that the responsibility of dismissals is non-inherent to workers. The definition is partly based on the collective agreement no. 24 (1975).

An employer needs to plan to dismiss, or make redundant, a minimum of 10 employees within the following 60 days in order to fall within the scope of national legislation.

Moreover, different thresholds define the collective dismissal, the legislation is applicable to:

• Companies which have an average number of workers employed (during the past year before the redundancy) from 20 to 99 persons, if the number of layoffs reaches 10 workers;
• Companies which have an average number of workers employed (during the past year before the redundancy) from 100 to 299 persons,  if the number of layoffs reaches 10% of the workforce; and
• Companies which have an average number of workers employed (during the past year before the redundancy) of at least 300 persons, if the number of layoffs reaches 30 workers.

Merchant navy personnel and civil servants are excluded from the legislation.

The national legislation requires the employers to justify planned redundancies by reporting directly to workers or to the workers’ representatives.