Is redundancy looming as a result of a restructuring in Eindhoven or the surrounding area? It is important to know that your employer must comply with strict rules. Dismissal on business-economic grounds is subject to stringent conditions, and knowing those rules puts you in a far stronger position. This article explains exactly how it all works.
What a restructuring means for your job
A restructuring means that a company is changing its structure, roles, or way of working. This can happen because the business is struggling financially, because departments are being merged, or because technology is making certain work redundant. For you as an employee, it may mean that your role changes or disappears entirely.
Even so, your employer cannot simply proceed with dismissal. A dismissal on business-economic grounds cannot simply be imposed. Clear statutory rules apply, and they exist for good reason.
The dismissal permit via the UWV
If your employer wishes to dismiss you on business-economic grounds, permission is required in most cases. When dismissing an employee on business-economic grounds, the employer applies for a dismissal permit from the UWV. This is no mere formality: the UWV assesses the application on its merits.
Your employer must demonstrate the following:
- There is a business-economic reason that makes your dismissal necessary, and the situation is unlikely to change within 26 weeks.
- Your employer adheres to the correct order of dismissal.
- Your employer is unable to redeploy you within a reasonable period of time.
- To obtain permission from the UWV, your employer must substantiate the business-economic reasons — merely stating them is insufficient.
Please note: the UWV dismissal permit is valid for only 4 weeks from the date of issue. If your employer does not make use of it within that time, the permit lapses and the procedure must be gone through again from the beginning.
The proportional representation principle determines who is made redundant
Not everyone can simply be the first to be dismissed. If an employer needs to make several people redundant simultaneously on business-economic grounds, the proportional representation principle (afspiegelingsbeginsel) determines who is selected for redundancy. This prevents arbitrary decisions and ensures a balanced age distribution.
The proportional representation principle means that employees are divided into age groups, whereby within each age group the employee with the shortest length of service is the first to be considered for redundancy, so that the age distribution of the workforce remains as consistent as possible before and after the redundancy round.
If you believe the order is incorrect, that is solid grounds for raising an objection. An employment lawyer can check the calculation on your behalf.
Redeployment takes precedence over dismissal
Before your employer may proceed with dismissal, a statutory duty to redeploy applies. Employers have a statutory obligation to first redeploy employees before proceeding with dismissal. This obligation applies specifically to situations in which positions are lost due to business-economic reasons.
Employers must first make a genuine investigation into whether a suitable role is available within the organisation before they may dismiss an employee, which means they must conduct redeployment discussions and explore training opportunities.
The employer does not need to guarantee that redeployment will succeed, but must demonstrably make serious and active efforts to achieve it. If your employer fails to do so, the dismissal can be challenged.
Plan een vrijblijvend gesprek en ontdek wat we voor je kunnen betekenen.
Plan een gesprekTo sign or not to sign a settlement agreement
Sometimes, during a restructuring, your employer does not initiate a UWV procedure but instead offers a settlement agreement (vaststellingsovereenkomst). This is a written arrangement under which you leave employment by mutual consent. The employer may try to put pressure on you and ask you to sign a settlement agreement within a few days. You are under no obligation to comply with this.
If you have already signed, you still have time by law to reconsider. After signing your settlement agreement, you as an employee have the right to dissolve that agreement without giving reasons within two weeks (14 days). If the cooling-off period is not included in the settlement agreement, it is extended and amounts to 21 days.
Your rights in the event of collective redundancy
If larger numbers of people are being made redundant at the same time, additional obligations apply. In the Netherlands, collective redundancy occurs when an employer intends to dismiss at least 20 employees within one work area within three months. The Collective Redundancy (Notification) Act (Wet Melding Collectief Ontslag) requires employers to notify trade unions and the UWV accordingly.
Those made redundant as a result of a restructuring are generally entitled to unemployment benefit (WW). In addition: if you are dismissed due to a restructuring or on business-economic grounds, you are entitled to a statutory redundancy payment (transitievergoeding). This payment is intended as financial compensation and to ease the transition to a new job. In 2026, the redundancy payment amounts to a maximum of €102,000 gross, unless your annual salary exceeds that amount.
Practical tips if you are facing a restructuring
- Never sign a settlement agreement immediately; always take the time to seek legal advice.
- Check whether the proportional representation principle has been applied correctly to your age group and job category.
- Ask your employer in writing which redeployment options have been explored.
- Make use of the statutory 14-day cooling-off period if you have already signed.
- Keep all communications relating to the restructuring: emails, letters, and records of conversations.
- In the event of collective redundancy, ask to see the social plan and find out what it provides for you.
- Engage an employment lawyer promptly — the earlier you do so, the more control you have over the process.
Find out more about your position during a restructuring
The rules surrounding dismissal on business-economic grounds are complex and depend heavily on your specific circumstances: your length of service, your role, the applicable collective labour agreement, and the way in which your employer has set up the procedure. Would you like a complete overview of everything involved in a restructuring? Read more at Restructuring and dismissal on business-economic grounds in Eindhoven.
Why Arbeidsjurist Eindhoven
At Arbeidsjurist Eindhoven, we know the local labour market in Eindhoven and the Brainport region. Whether you work for a large technology company or an SME employer in Brabant: we take a clear-headed look at your situation and give you straightforward, practical insight straight away. No legal jargon — just plain explanations of what lies ahead and what you can do about it. Get in touch with us for a no-obligation initial consultation. You are not committing to anything.
Frequently asked questions
Can my employer simply dismiss me during a restructuring?
No, they cannot simply do so. When dismissing an employee on business-economic grounds, your employer must either apply for a dismissal permit from the UWV or offer a settlement agreement. The UWV assesses whether the business-economic reasons are sufficiently substantiated, whether the proportional representation principle has been applied correctly, and whether redeployment is genuinely not possible. Only once all these conditions have been met may your employer proceed with dismissal.
Am I entitled to compensation if I am made redundant during a restructuring?
Yes. If you are dismissed on business-economic grounds, you are in principle entitled to the statutory redundancy payment (transitievergoeding). In 2026, this amounts to a maximum of €102,000 gross. The amount depends on your salary and length of service. Furthermore, you will generally be entitled to unemployment benefit (WW) following a restructuring, provided the settlement agreement or dismissal process has been carried out correctly.
What is the proportional representation principle and why does it matter to me?
The proportional representation principle (afspiegelingsbeginsel) is the statutory method that determines which employees are first to be considered for redundancy. Employees are divided into age groups, and within each group the rule is: the person with the shortest length of service goes first. This prevents arbitrary decisions. If you believe the order is incorrect, that gives you grounds to challenge the dismissal before the UWV or the cantonal court.
Do I have to sign a settlement agreement during a restructuring?
No, you are never obliged to sign a settlement agreement. Under no circumstances should you do so immediately under pressure from your employer. Have the agreement reviewed by an employment lawyer first. If you have already signed, you have a statutory cooling-off period of 14 days in which to withdraw your decision, without needing to give a reason. If that cooling-off period is not stated in the agreement, a period of 21 days applies instead.
What must my employer do before dismissing me during a restructuring?
Your employer must first make a genuine investigation into whether a suitable alternative role is available for you within the organisation, including after retraining if necessary. This is known as the duty to redeploy. Only if redeployment is demonstrably not possible may your employer apply for a dismissal permit from the UWV. If your employer fails to do this or does so inadequately, the dismissal can be challenged.
We are happy to think along with you. For advice tailored to your situation we would gladly sit down with you. No rights can be derived from the content of this page and it may contain inaccuracies.
