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Generally, it refers to dismissal carried out due to urgent business circumstances of a company, and it usually involves collective dismissal. It had been recognized by doctrines and precedents until it was legislated by the enactment of the Labor Standards Act on March 13, 1997. In cases where an employer intends to dismiss workers due to business reasons, there must be an urgent business necessity (Article 24, Paragraph 1 of the Labor Standards Act), the employer must make all efforts to avoid dismissal, establish reasonable and fair standards for dismissal, and select the targets accordingly (Article 24, Paragraph 2 of the same Act). In addition, the employer must sincerely consult with the workers' representative regarding methods to avoid dismissal and standards for dismissal, etc. (Article 24, Paragraph 3 of the same Act).