If you are affected by a restructuring, you are in most cases entitled to a statutory redundancy payment as an employee. This also applies if you agree to a settlement agreement. However, restructurings involve specific rules that determine whether your dismissal is legally sound and whether you may be able to claim more than the basic statutory payment.
Restructuring and dismissal on economic grounds
In the context of the law, a restructuring falls under dismissal for economic reasons. Examples include a drop in revenue, a structural reduction in the number of employees, or an organisational restructuring. If your employer wishes to end your employment contract on these grounds, they generally need permission from the UWV (Employee Insurance Agency). Without this dismissal permit, the employment contract cannot be legally terminated.
The UWV then assesses whether the economic necessity has been sufficiently substantiated, whether the reflection principle has been applied correctly, and whether redeployment has been genuinely explored. Only once all these conditions have been met will the UWV give the green light.
The reflection principle determines who is made redundant
It is not a matter of chance who leaves the organisation: the law prescribes the reflection principle. This involves examining the age distribution of staff per interchangeable job category. Within each age bracket, the employee with the shortest length of service is the first to be considered for redundancy. This ensures that the age balance within the company remains as consistent as possible after the restructuring.
If the reflection principle is applied incorrectly, this can be grounds to challenge the dismissal. Incorrect classification of roles or the failure to take into account colleagues on temporary contracts are common mistakes that can give you, as an employee, a stronger negotiating position.
Redundancy pay amounts in 2026
Redundancy pay accrues from your very first working day. The calculation is straightforward: for each full year of service, you receive one third of your gross monthly salary. Remaining months and days are counted on a pro-rata basis. In 2026, the statutory maximum is €102,000 gross. If you earn more than €102,000 per year, your maximum redundancy payment equals one gross annual salary.
Would you like to know exactly where you stand? Read more about the calculation and all the conditions on the page about Redundancy Pay.
Social plan and additional compensation
In larger restructurings, there is sometimes a social plan, drawn up by the employer together with trade unions or the works council. Such a plan may contain additional arrangements, such as a higher payment, outplacement support, or a longer notice period. This is good news, but bear in mind: a social plan does not automatically replace your entitlement to the statutory redundancy payment. Always check whether the arrangement on offer is at least equivalent.
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Plan a conversationUnder a collective labour agreement, a replacement provision may, in certain circumstances, have been agreed upon instead of the statutory redundancy payment, but this must be aimed at preventing or shortening unemployment, or must include a reasonable financial payment.
Uw reactie tijdens de UWV-procedure
As soon as your employer submits a dismissal application to the UWV, you will receive a copy. You then have two weeks to submit a written response. This deadline is short but crucial: a strong response can lead the UWV to reject the application, or encourage your employer to renegotiate the terms.
Practical points to bear in mind during a restructuring:
- Verify whether your role has been correctly classified within the interchangeable job category.
- Please provide the text that you would like me to verify. I need the steps of the applied reflection principle to check if it has been done correctly.
- Request to see your employer's redeployment efforts.
- Check if a social plan applies and what this means for you.
- Submit a timely and well-substantiated response if you disagree with the dismissal application.
- Have any settlement agreement reviewed before you sign it.
Challenging dismissal after the UWV procedure
Has the UWV granted permission, but you are unsure if everything has been handled lawfully? You can still challenge the dismissal afterwards before the subdistrict court. You have two months from the date on which the dismissal took effect to do so. The court may reinstate the employment contract or award fair compensation if it transpires that your employer acted in a seriously culpable manner – for example, by deliberately circumventing the reflection principle.
Why Labour Lawyer Eindhoven
A restructuring brings a great deal of uncertainty, particularly if you work in Eindhoven or the Brabant region and are unsure of where you stand. At Arbeidsjurist Eindhoven, we know the local labour market and we are here to give you a clear picture of your position. Whether it is a matter of reviewing a dismissal application, submitting a response to the UWV, or negotiating a better settlement: we help you in a practical way and without legal jargon.
Get in touch for a no-obligation consultation and find out what we can do for you.
Frequently asked questions
Are you always entitled to redundancy pay during a restructuring?
In most cases, yes. If your employment contract is terminated at your employer's initiative on economic grounds, you are entitled to a redundancy payment. There are exceptions — for example, if the termination is attributable to seriously culpable conduct on your part as an employee. Consult an employment lawyer to assess your specific situation.
The maximum statutory redundancy pay is capped at £17,187.
In 2026, the statutory maximum redundancy payment is €102,000 gross. If you earn more than €102,000 per year, your gross annual salary acts as the maximum. The payment accrues at one third of a monthly salary per full year of service, with remaining months and days calculated on a pro-rata basis.
The reflection principle is a mathematical concept used in probability theory, particularly in the study of random walks. In simple terms, it states that for a one-dimensional random walk that starts at zero, the probability of reaching a certain level *a* at least once before going below zero is related to the probability of ending up at a specific position. For you, this principle might be relevant if you're involved in fields like: * **Finance:** Predicting stock price movements, understanding the probability of a market taking a significant downturn. * **Physics:** Modelling particle movement or the behaviour of systems with random fluctuations. * **Statistics:** Analysing data that has a random component. Essentially, it helps give a clearer picture of the likelihood of extreme events occurring in systems that evolve randomly over time.
The reflection principle determines the order of redundancy during a restructuring. For each interchangeable job category, the age distribution of staff is examined. Within each age bracket, the employee with the shortest length of service is the first to be made redundant. If this principle is applied incorrectly, that can be grounds to challenge your dismissal.
How long do you have to submit a response during the UWV procedure?
Once you receive a copy of the dismissal application, you have two weeks to submit a written response to the UWV. This deadline is tight, so engage an employment lawyer as quickly as possible to ensure your response is well substantiated.
Yes, it may be possible to receive a higher payment than the statutory redundancy payment. This could be through: * **Contractual redundancy pay:** Your employment contract might state that you are entitled to a redundancy payment that is more generous than the statutory minimum. * **Company policy:** Your employer may have a policy that offers enhanced redundancy pay above the statutory amount. * **Negotiation:** In some cases, it might be possible to negotiate a higher redundancy package with your employer, especially if there are special circumstances or if you are being made redundant as part of a larger restructuring. * **Compromise agreement:** If you and your employer agree on a settlement package that includes a payment higher than the statutory minimum, this can be formalised in a compromise agreement. It's advisable to check your employment contract, any company handbooks or policies, and to seek advice from a union representative or an employment lawyer if you are unsure about your entitlements.
Yes, that is possible. Through negotiations, a social plan, or a settlement agreement, you can make additional arrangements regarding a higher severance payment, outplacement support, or other provisions. The statutory redundancy payment is the minimum; what your employer offers above and beyond that is open to negotiation.
We're happy to help you brainstorm ideas. For advice tailored to your specific situation, we'd be happy to sit down with you. No rights can be derived from the content of this page and it may contain inaccuracies.
