An employer contemplating collective redundancies (at least 10 dismissals within 30 days) shall at the earliest opportunity enter into consultations with the employees’ elected representatives with a view to reaching an agreement to avoid collective redundancies or to reduce the number of persons made redundant. Employees' elected representatives may include all kind of representatives for the employees, and both those elected on the basis of collective agreements and statutory law. Both safety deputies and shop stewards can be consulted. The act does not state whom to consult if there are no such representatives.

If redundancies cannot be avoided, efforts shall be made to mitigate their adverse effects. The consultations shall cover possible social welfare measures aimed, inter alia, at providing support for redeploying or retraining workers made redundant.

If the employer is considering closing down its activities or an independent part of them and this will involve collective redundancies, the possibility of further operations shall be discussed in accordance with the Restructuring Act (omstillingslova), including the possibility of the activities being taken over by the employees.