Disputes regarding the legality of dismissals provide employees with extensive rights that can result in significant costs for employers. The right to remain employed while the dispute is ongoing entails continued salary payments for months or years. Employees can demand negotiations within two weeks, and lawsuits must be filed within eight weeks. Employers may request resignation due to unreasonable circumstances, but the threshold is high for dismissals related to the company's circumstances. Unjust dismissals result in invalidity and compensation. The right of priority applies for one year after dismissal. Thorough case management and evaluation of severance packages can reduce the risk of disputes.

Proper case handling during downsizing requires a systematic approach with documentation of the need for change, early discussions with union representatives, board endorsement, and individual meetings with affected employees. Mass layoffs trigger specific notification requirements to NAV. Procedural errors can result in invalid terminations and liability for damages. Termination letters must meet strict formal requirements and be delivered correctly. Thorough planning, involvement of union representatives, and legal advice are essential for a responsible execution. An extensive checklist ensures compliance with all requirements.

Reassignment and termination due to changes are important alternatives to regular termination during restructuring. Changes within the "essential nature" of the position can be implemented under management authority, while substantial changes require termination due to changes. The threshold for termination due to changes is lower than that for regular termination. Procedural requirements must be followed, including consultation meetings. This is particularly relevant for older employees with long seniority. Information, consultation, and involvement of union representatives are central to an appropriate process.

The weighing of interests when it comes to termination requires a concrete balancing between the needs of the business and the individual situation of the employee. The provision functions as a safety valve and aims at extraordinary circumstances beyond normal inconveniences associated with termination. NAV's role as a safety net is included in the assessment. The Supreme Court's practice shows that it takes a lot for the balancing of interests to be decisive when downsizing is justified, especially when other suitable employment is offered. The obligation takes precedence over collective agreements concerning mere seniority.