On 30 October 2025, the Court of Justice of the European Union (CJEU) ruled that employers who proceed with collective redundancies without advance notification to the relevant authorities cannot validly terminate the employment relationship. The CJEU confirmed that only once the mandatory notifications have been given and the waiting period has expired can the dismissals take effect

Background to the Case

The case concerned the interpretation of Directive 98/59/EC on Collective Redundancies, hereafter the Directive.

This Directive lays down several procedural requirements to ensure that collective redundancies covered by the Directive (and, in Denmark, the Act on Notification, etc. in Connection with Collective Redundancies — commonly known as the “Mass Redundancy Act”) take place in dialogue with both employee representatives and the authorities.

The aim is to allow measures to prevent or reduce the social and economic consequences that follow from a collective redundancy situation.

The Directive obligates an employer to notify the competent public authority of any plan for collective redundancies.

Pursuant to the Danish Mass Redundancy Act, a company must send notifications to the Regional Employment Council (Det Regionale Beskæftigelsesråd – RBR) in cases of large-scale dismissals. This obligation entails:

  • A first notice stating that redundancies are being contemplated;
  • A second notice once negotiations have ended and redundancies cannot be avoided (if that is the case); and
  • A third notice specifying which individual employees are affected.

The Directive has been implemented by each Member State into national legislation, so equivalent rules on notifying the competent authority apply in each Member State.

The Facts of the Case

In the case, a German company in insolvency proceedings had its insolvency administrator dismiss several employees triggering the German rules on collective redundancies.

The administrator did not notify the German public employment service of the planned collective redundancies before implementing them, as required under German law.

One of the dismissed employees argued that their dismissal was invalid, because the administrator had not provided the required prior notification to the employment service.

The national court asked the CJEU to clarify when collective redundancies take legal effect, particularly in cases where the employer has failed to notify the competent national authority in advance.

The CJEU’s Findings

The CJEU held that collective redundancies can only take effect once notification has been given and the 30-day waiting period has expired.

This period is intended to allow the authorities time to investigate whether solutions can be found to reduce the number of redundancies or mitigate their effects on affected employees.

The Court further stated that the purpose of the Directive would be undermined if employers could implement dismissals without having submitted the required notification. In such a case, the authorities would have no opportunity to respond, and employee protection would be weakened.

Implications of the EU Court Ruling for Danish Employers

The CJEU ruling of 30 October 2025 underscores that the rules on collective redundancies are not mere formalities—they are binding legal requirements.

For Danish employers, this means that notification to the Regional Employment Council (RBR) must be submitted before any dismissals can take effect. Failure to comply with the statutory procedure can render the dismissals invalid, forcing the company to repeat the entire process.

The ruling highlights that ignoring formal requirements can have significant financial and operational consequences, even when the redundancies themselves are fully justified.

Practical Advice for Employers

Companies planning large-scale redundancies should take steps early to ensure that all legal obligations are met, including:

  • Timely notification of authorities;
  • Proper consultation with employee representatives;
  • Following all statutory steps in the correct order.

At Mette Klingsten Law Firm , we provide guidance on the planning and execution of collective redundancies, as well as on the practical obligations under the Danish Mass Redundancy Act and EU law.

About the Authors

Mette Klingsten and Lene Court-Payen are the authors of “The Act on Collective Redundancies – With Commentary”, published by Djøf Forlag. The third edition is currently in preparation.

Mette Klingsten and Mads Bernstorn regularly teach courses on collective redundancies. For more information on upcoming courses or tailored advice, please contact us.