Can your employer use redundancy and secondment in Eindhoven to avoid dismissal?

Circumventing dismissal for economic reasons through secondment? That is not simply allowed. During a reorganisation, employers sometimes resort to arrangements involving secondment or outsourcing in order to bypass the standard dismissal procedure. However, this is far from always permissible: the law expressly protects you as an employee with a permanent contract against this kind of workaround. Below you can read when such an arrangement is permitted, when it is not, and what you can do if your employer is pushing the boundaries of the law.

The statutory order of dismissal during a reorganisation

Before an employer can dismiss permanent employees for economic reasons, strict rules apply. The law prescribes a fixed order of priority: external workers must leave first. These are agency workers, seconded workers, and self-employed contractors carrying out the same work. Next are employees who have reached the state pension age, followed by on-call workers, then employees on a fixed-term contract ending within 26 weeks, and only when all these steps provide insufficient relief may permanent employees be dismissed.

This system exists for good reason: permanent employment contracts have traditionally enjoyed stronger protection than flexible forms of work. An employer may not simply engineer away that protection by making strategic use of secondment.

Outsourcing and secondment as a replacement for permanent staff

An employer who, during a reorganisation, makes your position redundant but then has the same work carried out by a seconded worker, an agency worker, or a self-employed contractor is on very thin ice. The Dismissal Regulations are clear on this point: there is no reasonable ground for dismissal on economic grounds if positions are eliminated because work is outsourced solely in order to replace permanent employees with people who are not employed on the basis of a permanent employment contract or who do the work for lower pay (Article 5 of the Dismissal Regulations). The legislature refers to this as a sham arrangement: in reality, the work does not disappear at all — it simply moves to a cheaper or more flexible party.

UWV scrutinises this type of dismissal application closely. Your employer will need to demonstrate that the outsourcing serves the purpose of efficient business operations and is not merely intended to reduce wage costs at the expense of your legal position.

When outsourcing is permitted

Not every form of outsourcing is by definition a sham arrangement. The law recognises situations in which outsourcing is a legitimate part of an economic business decision. Consider, for example, an employer who transfers a support activity — such as administration — to a specialist agency, where that activity does not form part of the primary business process. Or a situation in which an external party deploys technologically superior equipment that the organisation itself cannot reasonably purchase.

The distinction lies at the heart of the question: does the work genuinely disappear, or is it merely relocated at lower cost? If the work remains the same in terms of content and volume but simply ends up with a different party, UWV will in most cases reject the dismissal application.

The role of UWV in dismissal for economic reasons in Eindhoven

If your employer wishes to dismiss you for economic reasons, they will in principle always require a dismissal permit from UWV. UWV assesses the application and considers whether the economic necessity has been sufficiently substantiated, whether the correct order of dismissal has been followed, and whether the employer has genuinely explored the possibility of redeployment. As an employee, you have the right to submit a defence on all aspects of the application, including the question of whether a sham arrangement involving secondment or outsourcing may be present.

With effect from 1 July 2025, the UWV implementation rules for dismissal on economic grounds have been substantially revised. The assessment is therefore more up to date and more detailed than it was previously. It is certainly worthwhile to have your employer's application carefully reviewed.

Your rights when the arrangement does not hold up

Do you suspect that your employer is using secondment or outsourcing to dismiss you while the work continues to exist? There are several steps you can take.

• Request access to the dismissal application that your employer has submitted to UWV, so that you can assess the grounds put forward.
• Submit your defence to UWV in good time and explicitly point out the possible sham arrangement.
• Check whether the same or similar work continues after your dismissal, whether or not by another party.
• Pay attention to the re-employment condition: if your employer offers comparable work within 26 weeks of dismissal, he must offer it to you first.
• In the case of a settlement agreement: never sign under pressure or without legal advice, as an offer that is too low can be difficult to reverse.
• Always check that the transition payment has been calculated correctly; in 2026 the statutory maximum is € 102,000 gross.

Secondment by the employer to a different workplace

There is also a different situation: your employer seconds you to a client during or after a reorganisation. That is not in itself a means of dismissal. You simply remain employed by your own employer, and the client cannot dismiss you. Only when the secondment agreement ends and your employer has no suitable work for you can dismissal proceedings be initiated — but in that case the same rules apply as for any other dismissal on economic grounds.

The situation can become more complicated when a client wishes to swap one seconded employee for another. In such cases the employer may sometimes invoke the hardship clause in connection with the proportional selection principle, but even that is subject to strict conditions and UWV scrutinises it carefully. Have your position properly assessed before you agree to any proposal.

Assistance with dismissal for economic reasons and secondment

At Arbeidsjurist Eindhoven we understand that a reorganisation brings a great deal of uncertainty, especially when you feel that your employer is flouting the rules. We have an in-depth knowledge of the Eindhoven and Brabant labour market and know precisely where the boundaries lie when it comes to secondment and outsourcing arrangements. Whether it involves reviewing a dismissal application to UWV, conducting a defence, or negotiating a fair settlement — we are here for you. Would you like to know more about your rights regarding Reorganisation and Redundancy in Eindhoven? Contact us without obligation and we will look at your situation together.

Frequently asked questions

Is my employer allowed to make my position redundant and then outsource the work to a self-employed contractor?

Not without more. The law provides that there is no reasonable ground for dismissal if work is outsourced solely to replace permanent employees with cheaper or more flexible workers while the work itself remains substantively the same. UWV applies a strict test on the basis of Article 5 of the Dismissal Regulations. If you suspect a sham arrangement, it is advisable to seek legal advice in good time.

What is the difference between secondment and dismissal on economic grounds?

With secondment you remain employed by your own employer and work temporarily at a client's premises. The client cannot dismiss you. Dismissal on economic grounds only comes into play when your own employer decides that your position is to be permanently abolished and there are no suitable opportunities for redeployment. The employer requires a dismissal permit from UWV to do so.

What order must my employer follow when dismissing staff due to a reorganisation?

There is a statutory order of priority: first, external workers must go (agency workers, seconded staff, and self-employed contractors performing the same work), then those who have reached state pension age (AOW), followed by on-call workers, then employees on a fixed-term contract ending within 26 weeks, and finally permanent employees. Only once all the preceding groups have been considered may the mirror principle (afspiegelingsbeginsel) be applied to permanent employees.

How much is my transition payment if I am dismissed due to a reorganisation in 2026?

The transition payment amounts to one third of a gross monthly salary for each full year of service. In 2026, the statutory maximum is €102,000 gross. If you earn more than €102,000 per year, your gross annual salary serves as the maximum. Always check whether the amount offered has been calculated correctly, particularly if you have a long period of service or variable pay.

What can I do if UWV grants a dismissal permit even though I suspect a sham arrangement?

Within two months of the notice of dismissal, you can apply to the subdistrict court to have the dismissal annulled or to be awarded a fair compensation payment. You can also ask the court to assess whether your employer has breached the Dismissal Regulations. Legal advice is essential in these situations due to the short time limits involved.

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.