If your employer in Eindhoven closes down, voluntarily ceases trading, or goes bankrupt, you will suddenly find yourself out of a job. This is a significant blow, but you are not left empty-handed. Depending on how the business comes to an end, different rules apply regarding your wages, dismissal procedure, and any compensation due.
Voluntary business closure and liquidation
Not every business closes under duress. Sometimes an owner chooses to stop trading – for instance on retirement, due to health problems, or because no suitable successor can be found. Restructuring and economic dismissal in Eindhoven is governed by the same statutory rules as an ordinary business closure: the employer is in principle free to wind up the company, but must be able to substantiate the reasons for doing so.
A deliberate, orderly closure is usually followed by a liquidation phase. During that phase, debts are settled, assets are realised, and contracts are terminated. For employees, this means that dismissal must be arranged either through the UWV (the Employee Insurance Agency) or by means of a settlement agreement.
How dismissal works when a business closes
When a business closes, your employer can dismiss you via one of two routes. The most commonly used is an application for dismissal permission submitted to the UWV. The UWV then assesses whether the stated reason for closure is sound and whether the business activities are genuinely being discontinued – considering evidence such as termination of the lease on the business premises or proof that the inventory is being sold. If the UWV approves the application, your employer may only then give notice of termination, observing the applicable notice period.
The second route is a settlement agreement. In this case, the employer and employee agree the terms of the termination between themselves, including the end date and any compensation. It is essential to ensure that such an agreement is drawn up correctly so that your entitlement to unemployment benefit (WW) is not put at risk.
Your entitlement to a redundancy payment when a business closes
Have you been dismissed via the UWV because the business is closing? You are then in principle entitled to a statutory redundancy payment (transitievergoeding). The calculation is straightforward: for each completed year of service you receive one third of a month’s salary. In 2026, the statutory maximum is €102,000 gross, or one gross annual salary if that figure is higher.
In the case of a voluntary redundancy arranged through a settlement agreement, you have no specific legal right to a redundancy payment; in practice, however, a severance payment is usually agreed that is close to the statutory amount. Always have the agreement reviewed before you sign.
Bankruptcy – what’s changing
Bankruptcy is a different matter. The court appoints a liquidator to wind up the company. As an employee, you can submit any outstanding claims to the liquidator, but in practice the funds available for this are often very limited.
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Plan a conversationFortunately, there is a safety net: the UWV’s wage guarantee scheme. When your employer is no longer able to pay, the UWV temporarily takes over the payment obligations. Specifically, the UWV covers outstanding wages for a maximum of thirteen weeks prior to the date on which notice was given, wages during the notice period up to a maximum of six weeks, and any unpaid holiday pay and accrued holiday days for a maximum of one year. You apply for this benefit via Mijn UWV.
As for the redundancy payment: in the event of bankruptcy, the employer is not legally obliged to pay it, as they are financially unable to do so. It is therefore worth checking whether any options are available – for example, if the business is being taken over as a going concern.
Going-concern takeover – be careful where you stand
A going-concern takeover means that another party acquires (part of) the insolvent business. This may sound like good news, but as an employee you need to proceed with caution. Following a bankruptcy, your employment contract does not automatically transfer to the new owner, as may be the case with a standard business transfer. You could therefore still lose your job. Furthermore, if the new employer offers you an employment contract, your length of service starts afresh, and your right to a redundancy payment for the period with the previous employer lapses.
Practical steps to take if your company closes or goes bankrupt
- Register with the UWV for the wage guarantee scheme as soon as possible; do not delay, as this could jeopardise your claims.
- Request a statement of your outstanding wages, holiday pay and any unused holiday entitlement immediately.
- Register with the UWV for unemployment benefit (WW) as soon as you know when your employment will end.
- Do not sign a settlement agreement without first having it reviewed by a legal professional.
- Check whether the company is covered by a collective labour agreement (CLA), as this may contain additional provisions regarding compensation in the event of closure.
- Ask the liquidator about the status of your claim as a preferential creditor.
- Find out whether a going-concern takeover is taking place or is imminent, as this has a direct bearing on your legal position.
Why Labour Lawyer Eindhoven
A business closure or bankruptcy often takes you completely by surprise. At Arbeidsjurist Eindhoven, we are here to support you – whether that involves reviewing a settlement agreement, calculating your redundancy entitlement, or protecting your position in the event of a going-concern takeover. We know the local labour market in Eindhoven and the Brainport region and offer practical, straightforward advice. Get in touch for a no-obligation initial consultation – you’ll quickly know exactly where you stand.
Frequently asked questions
Are you entitled to a redundancy payment if your employer goes bankrupt?
If the company goes bankrupt, your employer is not legally required to pay the redundancy pay, as they are unable to do so financially. However, you may be able to claim outstanding wages and wages during the notice period through the UWV's wage guarantee scheme. There is no UWV guarantee for redundancy pay itself in the same way that wages are covered. Have an employment lawyer review your situation to see if any options are available.
What does the UWV's wage guarantee scheme cover in the event of bankruptcy?
The wage guarantee scheme covers outstanding wages for a maximum of thirteen weeks prior to the date on which your contract was terminated, wages during the notice period up to a maximum of six weeks, and any unpaid holiday pay and accrued holiday days for a maximum of one year. You apply through Mijn UWV as soon as bankruptcy has been declared.
What happens to my employment contract in a going-concern takeover following bankruptcy?
In a going-concern takeover following bankruptcy, your employment contract does not automatically transfer to the new owner. The liquidator can terminate your contract, and the acquiring party may or may not offer you a new one. If you accept that offer, you begin a new period of employment and your right to a redundancy payment for the time spent with the previous employer lapses.
How will I be dismissed in the event of a voluntary business closure in Eindhoven?
Your employer can apply to the UWV for dismissal permission. The UWV will then assess whether the closure is credible and sufficiently substantiated. Alternatively, the employer and employee can conclude a settlement agreement. In that case, it is essential that the agreement is drawn up correctly so that your entitlement to unemployment benefit (WW) is preserved.
Am I entitled to unemployment benefit after being made redundant due to a business closure?
Yes, in principle you are entitled to unemployment benefit (WW) following economic dismissal, provided you meet the weeks-worked requirement (you must have worked for at least 26 of the 36 weeks prior to becoming unemployed). Register with the UWV as soon as possible to ensure your benefit starts on time. If a settlement agreement is used, it is crucial that the notional notice period is correctly reflected in the agreement.
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