The subject of this thesis is business related termination of the employment contract,as well as the procedure for the termination of the employment contract in the case of collective redundancy in Croatian law.In the paper,first of all,the institutes of business termination of employment contracts as well as termination of collective redundancy of workers,assumptions and criteria that are applied are explained.It is emphasized that business related dismissal is often a consequence of restructuring,technological changes or reduction in the volume of business.The legal regulations related to the dismissal procedure are analyzed,as well as the rights and obligations of the employer in this context.Cooperation with the works council,consultation obligations and the criteria by which the employer should be guided(social and additional).The works also includes notice period in case of cancellation of the employment contract as well as severance pay.The collective redundancy of workers is included in the work because on this occasion the employment contract of the worker included in the collective redundancy is also terminated due to business related dismissal rights in case of termination.The aim of the work is to investigate the causes,consequences and social aspects of the collective surplus of workers.