Advance Explanation and Hearing the Employee

The employer shall present the employee with an advance explanation of the grounds for the lay-off, and its estimated extent, implementation, commencement and duration. The explanation shall be presented without delay as soon as the employer becomes aware of the need for lay-offs. The explanation can be given orally or in writing.

If the lay-off concerns a number of employees, the explanation may be given to the employees' representative or the employees jointly.

After presentation of the explanation but before the lay-off notice, the employer shall reserve the employees or their representative an opportunity to be heard concerning the explanation given.

It is not necessary to present an advance explanation if the employer is required under Act on Co-operation within Undertakings, collective agreement or other provision binding the employer to present a corresponding explanation or negotiate on the lay-offs with the employees or their representative. Usually the advance explanation is given in small companies that employ less than 20 employees.