The announcement of a redundancy during reorganisation often hits like a bomb. It immediately evokes a sense of uncertainty, because what exactly does this mean for your job? At its core, your employer is adjusting the company structure, and this can unfortunately lead to dismissal on business grounds. This kind of intervention rarely comes out of the blue; it is usually due to financial pressures, the introduction of new technology or a merger, for example.
What a reorganisation means for your job
A reorganisation is a major event within any organisation. Although the word quickly evokes the association with job losses, that is not always the only outcome. It can also mean changing job content, merging departments or creating entirely new roles.
Still, it is wise to be prepared for anything. A reorganisation is rarely born out of luxury. It is usually based on serious business reasons that force an employer to scrutinise the structure and make sometimes painful choices.
The signs of an approaching reorganisation
Sometimes a reorganisation comes as a total surprise, but often there are signs beforehand that something is brewing. If you recognise these omens, at least you won’t be caught entirely off guard. Consider, for example:
- Persistently poor financial results openly shared within the company.
- The arrival of external consultants or interim managers suddenly scrutinising business processes.
- A sudden vacancy freeze; no new people are hired.
- Increasingly closed doors at management and an increase in meetings that you yourself are not part of.
You can compare a reorganisation to a major renovation of your house while you are still living in it. The end goal is a better, more efficient future, but the road towards it is often uncertain, messy and stressful.
These signs don’t necessarily mean your job is on the line, but they are a clear indication that the company is reorienting itself.
Current economic realities
The need for companies to reorganise is only heightened by current economic conditions. Recently, we have seen a sharp rise in the number of notifications of collective dismissals – where at least 20 employees are laid off at the same time. According to economists, this is largely due to higher operating costs and a cooling economy. This is forcing companies to critically review their workforce.
This emphasises that reorganisation redundancy is a current and widespread phenomenon, something the UWV figures also confirm.
This guide aims to help you get to grips with the legal details. That way, you will know exactly where you stand and what steps you can take to stand up for your rights.
The dismissal procedure through the UWV
When your employer decides that a dismissal in reorganisation is unavoidable, it cannot simply terminate your contract. In most cases, this requires the employer to submit a formal dismissal request to the UWV. This route is there specifically to protect your rights as an employee and ensure that the dismissal is fair and in accordance with the legal rules.
The employer must start this procedure by providing a comprehensive and well-substantiated dossier. This is by no means a formality; the UWV rigorously tests the application on several crucial points. This process gives you assurance that your job will not be taken lightly.
The employer’s burden of proof
At the heart of the UWV procedure is that the burden of proof is entirely on the employer. He must convincingly demonstrate that the dismissal is really necessary. This includes several elements:
- Business necessity: The employer must prove with figures and a clear rationale why the reorganisation is necessary. Think of disappointing financial results, a shrinking market or technological developments that make certain functions redundant. A vague story is absolutely not enough.
- Application of the separation principle: Next, it must be crystal clear who is eligible for dismissal. This is done through the separation principle, an objective method that we explain step by step in the next chapter.
- The redeployment obligation: Perhaps the most important point for you, the employer must demonstrate that no other suitable position is available for you within a reasonable period of time within the company, or the group to which it belongs.
The UWV acts as an independent gatekeeper. They verify whether the employer has followed all the necessary steps correctly and whether the reasons for dismissal are substantial enough. Without their consent, a dismissal through this route is invalid.
This procedure gives you, as an employee, the chance to put up a defence. Once the UWV receives the dismissal request, you will be given two weeks to respond in writing. This is the time to state why you disagree with the proposed dismissal.
Your role in the procedure
It is crucial that you actively participate in the procedure. You can, for instance, argue that the economic reasons are incorrect, that the principle of rationalisation was incorrectly applied or that your employer has failed in its obligation to redeploy. If you can prove that there was indeed a suitable position for you, the UWV may refuse the dismissal permit.
At this stage, it is wise to seek the assistance of a legal specialist. An expert can effectively formulate your defense and verify whether the employer is complying with all the relevant rules. After all, going through the procedure carefully is not only a duty for the employer, but above all a right for you, giving you the best chance to defend your position.
The separation principle step by step
The question “why me?” is often the most painful part of a dismissal in reorganisation. The answer to that question is not based on arbitrariness, but is enshrined in a strict legal rule: the separation principle. This principle was established to ensure the order of dismissal is as objective and fair as possible.
The principle of mirroring aims to maintain the age structure within the company as intact as possible after a round of dismissals. So an employer should not simply select the employees who are perceived as “inconvenient” or cost the most.
The first step: interchangeable functions
The procedure always starts with the clustering of interchangeable jobs. These are essentially similar jobs. Consider the job content, the required knowledge and skills, as well as the salary level. All employees falling within such a group are assessed together.
In practice, determining interchangeable jobs is often a source of debate. It is therefore wise to critically compare your job description with those of colleagues who seem (for the time being) to be out of the picture.
The second step: classification into age groups
Once the interchangeable job group has been determined? Then the classification of all affected employees into five legally defined age groups follows:
- 15 to 24 years
- 25 to 34 years
- 35 to 44 years
- 45 to 54 years
- 55 and over
This classification is at the heart of the principle. It forces the employer to distribute redundancies proportionally among the different age groups, in proportion to how many employees are in each group.
This objective approach is becoming increasingly important in an economy where reorganisations are unfortunately more frequent. We are seeing a marked increase in collective redundancies in the Netherlands. Dozens of companies have already reported collective dismissals to the UWV, affecting thousands of employees. The industry and business services sectors are particularly hard hit, making the impact of economic shifts on the labour market painfully clear.
The attrition principle serves as a mathematical formula for fairness. It replaces subjective choices with an objective calculation based on age and years of service.
The final step: seniority is the deciding factor
After calculating the number of redundancies required for each age group, the final, decisive criterion comes into play: seniority. Within each age group, the employee with the shortest length of service is the first to be considered for dismissal. This is also known as the ‘last in, first out’ principle.
Suppose that one person in the 35-44 age group has to leave. If there are three employees in that group, it is the one who joined last who receives the letter of dismissal.
Below is a simplified example showing how the attribution principle is applied in practice.
Example of the separation principle in practice
This table illustrates how the multiplier principle is applied to determine which employees are eligible for dismissal within an interchangeable function.
| Age group | Number of employees | Number to be dismissed | Selection based on years of service |
| 15-24 years | 5 | 1 | The employee with the shortest length of service |
| 25-34 years | 10 | 2 | The two employees with the shortest tenure |
| 35-44 years | 8 | 1 | The employee with the shortest tenure |
| 45-54 years | 12 | 2 | The two employees with the shortest tenure |
| 55+ years | 5 | 1 | The employee with the shortest tenure |
It is crucial that you check that your employer has followed these steps correctly. This is because an error in the application of the attribution principle can invalidate a dismissal.
Your rights and the social plan
When your job is at risk due to a redundancy in a reorganisation, you are fortunately not alone. Dutch law has several protection mechanisms. It is crucial that you know these rights, as they form the basis of your negotiating position and provide a financial and practical safety net for the future.
Your employer cannot simply cut ties; strict obligations apply. By knowing what those duties entail, you take back a bit of control during an uncertain time. It allows you to check for yourself whether the process is fair and take action if it is not.
The employer’s reemployment duty
One of the all-important duties of your employer is the reemployment duty. This means that the employer must actively and seriously investigate whether there is another suitable position for you within the company or group. This obligation of effort is a fundamental part of the dismissal procedure.
A suitable job matches your education, experience and skills. This may even be a job for which you can be made suitable with a short, reasonable amount of training. Your employer should proactively inform you about this. A good tip: also document internal job offers you see coming by yourself. This can significantly strengthen your position.
The role of the social plan
Larger reorganisations, involving multiple redundancies, often involve a social plan. This is an agreement between the employer and the unions or works council (OR). This plan contains agreements to mitigate the negative consequences of the dismissal for the affected employees.
Consider arrangements such as:
- A higher severance payment than the legal transition compensation.
- An outplacement budget to engage professional help in finding a new job.
- Opportunities for retraining or further training to increase your chances on the labour market.
- A period of time off work with pay.
Although an employer is not always legally obliged to draw up a social plan, it is often the result of negotiations. Such a plan provides clarity and certainty for everyone.
A good social plan acts as a safety net that helps cushion the financial and emotional blow of dismissal. It is more than just a financial arrangement; it is a roadmap to a new future.
Your right to the transition compensation
Regardless of whether a social plan is in place, you are always legally entitled to a transition allowance in case of dismissal on economic grounds. This compensation is meant to compensate you for losing your job and to help you make the transition to other work easier.
The amount of the transition compensation depends on your monthly salary and how long you were employed. The calculation is laid down by law: you receive 1/3 monthly salary per whole year of service. For the remaining months, the compensation is calculated pro rata. In practice, this statutory compensation is often the starting point for negotiating a higher severance payment, especially if there is a social plan or if you sign a settlement agreement.
Negotiating the settlement agreement
Instead of the formal, often drawn-out dismissal procedure through the UWV, employers regularly choose to offer a settlement agreement (VSO). This is basically a proposal to terminate the employment contract by mutual agreement. While this is a faster and more efficient route for an employer, for you as an employee it is above all a crucial bargaining moment.
A VSO opens the door to better terms than what is strictly required by law. Therefore, never regard your employer’s first proposal as a final offer. It is the opening of a negotiation in which much more is at stake than just your last working day.
What should be in the VSO
A legally watertight settlement agreement is essential to secure your right to unemployment benefit. If it contains errors, it could cost you dearly. There are a few crucial elements that absolutely must be in it to avoid problems with the UWV:
- Employer initiative: The agreement must state crystal clear that the employer took the initiative for the dismissal and that the reason is business-related.
- The correct notice period: The notice period stated in your contract or the law must be applied correctly. If this period is too short, the UWV may decide not to start your WW benefit until later.
- No culpable unemployment: There should be no urgent reasons, such as summary dismissal. The VSO must make it clear that you are not to blame.
The wording of these points is extremely important. A small carelessness could cost you thousands of euros in unemployment benefit.
Negotiation points for a better deal
Apart from the basic legal conditions, the VSO offers plenty of room to negotiate a package that eases the pain of dismissal during reorganisation. It is worth noting that of the thousands of quarterly redundancies, a large proportion take place at the initiative of the employer for economic reasons. These kinds of dismissals require a careful, legal procedure that costs an employer time and money. Exactly that gives you bargaining power.
Never just sign a settlement agreement. It is a binding contract that affects your financial future. Always have the document reviewed by a specialist for legal accuracy.
What can you negotiate about? Consider, for example:
- A higher severance payment: The legal transitional compensation is often the bare minimum. Depending on the situation, a higher compensation, sometimes double, is certainly not inconceivable.
- Time off from work: Negotiate a period in which you no longer have to come to work, but are still paid your full salary. This will give you the peace of mind and space to start looking for a new job in the meantime.
- Budget for legal advice: It is quite common for your employer to pay the costs of having the VSO legally checked. An amount between €750 and €1,500 is common here.
- Outplacement budget: Ask for a budget for an outplacement programme. A professional coach can then help you hunt for a new position.
- A positive certificate: Make sure the content of a positive and neutral certificate is already laid down in the contract. This will prevent discussions afterwards.
By taking matters into your own hands and negotiating firmly, you can significantly reduce the adverse consequences of dismissal.
Frequently asked questions about dismissal during reorganisation
A dismissal during reorganisation naturally raises a lot of questions. It is an uncertain time and the rules can be quite complicated. That is why we answer the most pressing questions below, clearly and practically, so that you know where you stand.
In a reorganisation, can I be fired if I am sick?
Here, fortunately, the main rule is very clear: there is a ban on dismissal during illness. So, in principle, your employer cannot dismiss you while you are sick. This is a strong protection, but there are a few snags.
The timing of your call-in sick is crucial. Were you already sick before your employer submitted the dismissal request to the UWV? Then you are fully protected. However, if you report sick after that application is already pending, the procedure continues as normal and this particular protection does not apply.
There is another important exception. Does the whole company or the specific department where you work close down? Then your job lapses entirely. In that scenario, unfortunately, the notice prohibition can no longer provide protection for you. So properly documenting exactly when you called in sick is essential.
What exactly is an interchangeable function?
The concept of an ‘interchangeable function’ is the absolute linchpin of the separation principle. In short, jobs are interchangeable if they are so similar in practice that colleagues can take over each other’s work without too much difficulty. For this, the UWV considers several fixed criteria.
The main pieces of the puzzle are:
- Job content: Do the tasks, powers and responsibilities largely correspond?
- Required knowledge and skills: Are the competencies you need for the job similar?
- Remuneration: Are the salary and other conditions at the same level?
Whether jobs are truly interchangeable is often a source of debate. Compare your own job description and your actual duties carefully with those of your colleagues. That way, you can judge for yourself whether your employer’s classification is correct.
Your employer should lump all employees with interchangeable functions together before applying the ‘reflection’. If he makes a mistake, the entire dismissal procedure can be declared invalid.
Am I obliged to sign a settlement agreement?
No, absolutely not. You are never obliged to sign a settlement agreement (VSO). Think of it as a proposal from your employer to come to a mutual agreement together. You have every right to refuse that proposal.
If you do not sign, your employer must take the official and often more complicated route via the UWV. A VSO can have benefits, such as higher severance pay or a budget for new training, but it also carries risks. For instance, a sloppily drafted agreement may jeopardise your right to unemployment benefits.
Our advice is therefore crystal clear: never sign immediately. Take your time, gather information and always have a VSO checked by a legal specialist.
What if my employer ignores the reemployment obligation?
The redeployment obligation is not a non-binding suggestion; it is a serious obligation on your employer. He must make an active and demonstrable effort to find you another suitable position within the company or group. Do you feel that your employer is not doing enough about this? Then take action yourself.
Make your objections known in writing. Point out to your employer any internal vacancies you have seen yourself that you feel are suitable. Keep good records of all communications about this. If your employer violates its re-employment obligation, this may be a reason for the UWV to reject the dismissal request.