Eurofound's ERM database on restructuring-related legal regulations provides
information on regulations in the Member States of the European Union and Norway
which are explicitly or implicitly linked to anticipating and managing change.
Denmark: Effects of non-compliance with dismissal regulations
Phase
The Danish Act on Collective Redundancies (Consolidation Act no. 291 of 22 March 2010)
Native name
Bekendtgørelse af lov om varsling m.v. i forbindelse med varsling af større afskedigelser (LBK nr 291 af 22/03/2010)
Type
Effects of non-compliance with dismissal regulations
Added to database
08 May 2015
Article
Article 11
Description
The legislation specifies that employers must pay fines and compensation to employees amounting to 30 days’ pay if they fail to comply with the provisions on negotiating and notifying works council and labour authorities in relation to collective dismissals (within 30 days, dismissals of at least 10 workers in companies with 21-99 employees, at least 10% in companies with 100-299 workers and at least 30 dismissals in larger firms).
In those cases where at least 50% of a workforce of 100 or more employees is being made redundant, the compensation will be eight weeks’ pay in the event of non-compliance with the legislation.
Should employers fail to comply with legal requirements, employees have recourse to the regional employment council in cases where advance notification has not been given.
Penalties or sanctions typically take the form of fines for employers, and compensation for employees.
Commentary
Most employers comply with the requirements and the number of infringements is low.
Additional metadata
Cost covered by
Employer
Involved actors other than national government
Regional/local government
Works council
Involvement (others)
None
Thresholds
Affected employees: 10 Company size: 21 Additional information: No, applicable in all circumstances
Alpha Consulting (2003). Anticipating & Managing Change - A dynamic approach to the social aspects of corporate restructuring, Brussels, European Commission
Citation
Eurofound (2015), Denmark: Effects of non-compliance with dismissal regulations, Restructuring legislation database, Dublin,
https://apps.eurofound.europa.eu/legislationdb/effects-of-non-compliance-with-dismissal-regulations/denmark
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