Made redundant in a reorganisation, what now in Eindhoven

Being declared surplus in a reorganisation can feel like a cold shower, but it is not the end of the road. Before your employer can actually proceed with your dismissal, they must follow an entire process governed by strict legal rules. If you understand what those rules entail, you will be in a much stronger position when facing dismissal in a reorganisation in Eindhoven.

What being declared redundant means

Being declared surplus means that your position or establishment post is being abolished as a result of an organisational change. Think of cost savings, automation, a merger or the merging of departments. It is important to understand that your employment contract continues to exist until it has been lawfully terminated. Your salary therefore continues to be paid, even if you have little left to do in practice.

You are only officially surplus once you have received written notification to that effect. From that moment the follow-up process begins and you have the right to know on what grounds you were selected.

The mirror principle – your first check

The selection of who is declared surplus must not be arbitrary. In the case of dismissal on business-economic grounds, your employer is in almost all cases required to apply the mirror principle. This means that employees with interchangeable positions are divided into age categories, after which it is determined per category – on the basis of years of service – who is first in line for dismissal. The aim is to preserve the age distribution within a job group.

If this principle is applied incorrectly, UWV may refuse to grant a dismissal permit. Always check, therefore, whether the selection procedure was carried out transparently and correctly. Ask your employer for access to the underlying rationale and compare it against the statutory rules.

Redeployment – your employer's obligation

Dismissal is only appropriate when redeployment is genuinely not possible. Your employer is legally required to seriously investigate whether a suitable or interchangeable role is available within the organisation, generally within a reasonable timeframe. Only when that investigation demonstrably yields nothing can the dismissal process be continued.

Please note: a suitable role does not need to be identical to your current position, but it must align with your education, experience and capabilities. If you are offered a suitable role and refuse it without good reason, this may have consequences for your legal position.

Two routes to dismissal – UWV or settlement agreement

If redeployment truly proves impossible, there are two routes your employer may take:

• UWV-ontslagvergunning: the employer requests permission from UWV to terminate the employment contract. UWV critically assesses whether the business-economic necessity exists, whether the mirror-image principle (afspiegelingsbeginsel) has been applied correctly, and whether redeployment has been seriously investigated.
• Settlement agreement (VSO): the employer proposes termination by mutual consent. This is quicker and bypasses the UWV assessment, but you have the right to refuse this proposal or to negotiate the terms.

If you opt for a settlement agreement (vaststellingsovereenkomst), it is advisable to have the contents checked before you sign. Consider the level of the payment, the notional notice period, and the consequences for your unemployment benefit (WW).

Your payment – the transition payment as the statutory minimum

In the event of dismissal via UWV or via the subdistrict court, you are entitled to a transition payment. The calculation is straightforward: you receive one third of a gross monthly salary for each full year worked. In 2026, the statutory maximum is €102,000 gross, or one gross annual salary if that amounts to more.

Some employers offer a higher payment in a settlement agreement or social plan in order to avoid a lengthy procedure. This is a genuine point for negotiation, particularly if you have been employed for a long time or if the selection procedure was not entirely sound.

The social plan – what is in it for you

If your employer is reorganising several people at the same time, there is often a social plan in place. That plan is generally drawn up in consultation with the works council and, where applicable, the trade unions. It sets out arrangements regarding redeployment, outplacement support, work-to-work guidance, and the level of payments. Check whether such a plan applies and whether the settlement agreement you have been offered genuinely reflects what it contains.

Practical steps if you have been declared surplus

• Request written reasons for your designation as redundant and for the selection method used.
• Check whether the mirror-image principle (afspiegelingsbeginsel) has been applied correctly within your job category.
• Establish whether a social plan or collective labour agreement (cao) applies that sets out rights for you.
• Never sign a settlement agreement immediately; you are entitled to a period of reflection and to negotiate the terms.
• Have the calculation of your transition payment or severance payment checked.
• Keep all correspondence with your employer carefully, in case the situation escalates.
• Seek legal advice in good time, so that you know your position before any decisions are made.

When to go to court

If it later turns out that the dismissal did not meet the statutory requirements, you can challenge it. Think of an incorrectly applied mirroring principle, an inadequate redeployment investigation, or a payment that is too low. In that case, you can bring proceedings before the subdistrict court. Bear in mind the limitation periods: in dismissal law these are short. So do not wait too long to take action if you have doubts about the validity of your dismissal. Read more about all legal options in the overview of Reorganisation and Redundancy in Eindhoven.

Help if you are declared surplus during a reorganisation

At Arbeidsjurist Eindhoven we have a thorough knowledge of the local labour market in Eindhoven and the Brainport region. We assist employees who have been declared redundant in assessing their position, reviewing their payment and conducting negotiations. Whether you have doubts about the selection procedure or have received a settlement agreement you would like checked: please feel free to contact us without obligation. We are happy to think through the best next step in your situation with you.

Frequently asked questions

What does it mean if you are declared surplus to requirements during a reorganisation?

Being declared surplus to requirements means that your position or established post ceases to exist as a result of a reorganisation. However, your employment contract remains fully in force and your salary continues to be paid until the employment contract has been lawfully terminated by means of a settlement agreement, a UWV dismissal permit, or a ruling by the subdistrict court.

Am I entitled to a severance payment if I am declared surplus to requirements?

Yes. If you are dismissed following a declaration that you are surplus to requirements, you are in principle entitled to at least the statutory transition payment. In 2026 this amounts to one third of a gross monthly salary for each complete year worked, up to a maximum of €102,000 gross (or one gross annual salary if that is higher). Through a social plan or negotiations over a settlement agreement, the payment may be higher.

May I refuse a settlement agreement if I have been declared surplus to requirements?

Yes, you may. A settlement agreement (VSO) is a proposal to terminate employment by mutual consent. You are never obliged to sign. If you do sign, you have a statutory three-week cooling-off period during which you can revoke the settlement agreement. Always have the contents checked by an employment lawyer before you put your signature to it.

The reflection principle is a legal term that refers to the legal theory that a court will reconsider previous decisions if the facts or circumstances of a case have changed significantly. This principle is important for you because it means that if you have a legal case before a court, and there are new developments or changes in your situation, you may be able to ask the court to review its previous decision. This could be beneficial if the court's original decision was not in your favour, or if you believe that the new circumstances warrant a different outcome.

The mirroring principle is the statutory method used to determine which employee within an interchangeable job category is first considered for dismissal. Employees are divided into five age categories and selected on the basis of years of service. If this principle is applied incorrectly, your dismissal may be open to challenge and the UWV may refuse to grant the dismissal permit.

How long does my employer have to find a suitable position for me?

Your employer is obliged to conduct a genuine investigation into whether redeployment to a suitable position is possible, generally within a reasonable period of up to 26 weeks depending on the circumstances. Only if this investigation demonstrably yields no result can the dismissal process be continued. Have it checked whether your employer has carried out this investigation with sufficient care.

We are happy to think along with you. For advice tailored to your situation, we would be glad to talk. No rights can be derived from the content of this page and it may contain inaccuracies.