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 a company is changing its structure, roles, or way of working. This can happen because the business is struggling financially, departments are being merged, or 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 follows the correct dismissal procedure.
- 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 principle of proportional representation 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 principle of proportional representation means that employees are divided into age groups, and 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 process.
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 carry out a genuine investigation into whether a suitable role is available within the organisation before they may dismiss an employee. This means that they must hold redeployment discussions and explore training opportunities.
The employer does not need to guarantee that redeployment will be successful, but must demonstrably make serious and active efforts to achieve it. If your employer fails to do so, the dismissal can be challenged.
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Plan a conversationTo 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 pressure you and ask you to sign a settlement agreement within a few days. You are under no obligation to comply with this.
If you've already signed, you still have time by law to reconsider. After signing your settlement agreement, you, as an employee, have the right to terminate that agreement without giving a reason 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 large 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 straight away; 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.
- In writing, ask your employer which redeployment options have been explored.
- Take advantage of the statutory 14-day cooling-off period if you have already signed.
- Keep all communications related 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 Labour Lawyer Eindhoven
At Arbeidsjurist Eindhoven, we understand the local labour market in Eindhoven and the Brainport region. Whether you're employed by a large tech firm or an SME employer in Brabant: we'll take a clear-eyed look at your situation and immediately provide you with straightforward, practical insights. No legal jargon – just plain explanations of what you can expect and what you can do about it. Contact us for an initial consultation, free of obligation. You're not committing to anything.
Frequently asked questions
Your employer cannot simply dismiss you during a restructuring. There are specific legal processes they must follow, depending on your employment status and the reason for dismissal. Here's a breakdown of what generally applies in the UK: * Redundancy: If your role is no longer needed as part of the restructuring, this is likely to be considered a redundancy situation. Your employer has a legal obligation to follow a fair redundancy process. This includes: * Consultation: They must consult with you (and any other affected employees) about the proposed redundancies. This means discussing the reasons, exploring alternatives, and considering ways to avoid or mitigate the redundancies. * Fair Selection: If there's a pool of employees for selection, they must use fair and objective selection criteria. * Redundancy Pay: If you have worked for your employer for at least two years, you are legally entitled to statutory redundancy pay. * Notice Period: Your employer must give you your contractual or statutory notice period. * Alternative Employment: They should also consider if suitable alternative employment is available within the company. * Unfair Dismissal: If your employer dismisses you without a fair reason or without following the correct procedures, it could be considered unfair dismissal. Redundancy is a potentially fair reason for dismissal, but only if the process outlined above is followed correctly. * Other Reasons for Dismissal: While restructuring might be the backdrop, your employer can dismiss you for other potentially fair reasons, such as gross misconduct. However, this would require a separate disciplinary process. What you should do: 1. Ask for Clarity: Understand the exact reasons for your potential dismissal and the process your employer intends to follow. 2. Review Your Contract: Check your employment contract for any specific clauses related to redundancy or dismissal. 3. Seek Advice: If you are concerned about the fairness of the process or your rights, it is highly recommended to seek professional advice. You can contact: * ACAS (Advisory, Conciliation and Arbitration Service): They offer free and impartial advice on employment rights. * A Trade Union: If you are a member. * An Employment Solicitor: For expert legal advice. In summary, while restructuring can lead to redundancies, your employer must adhere to legal requirements to ensure the dismissal is fair and lawful.
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.
Are you entitled to compensation if you are 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.
The principle of proportional representation (PR) is a method of electoral reform that aims to ensure that the number of seats a political party wins in an election is broadly in proportion to the number of votes it receives. Here's why it matters to you: * Fairer Representation: In systems without proportional representation, a party can win a majority of seats without a majority of the votes (e.g., if votes are geographically concentrated). PR aims to prevent "wasted votes" and ensures that smaller parties, which represent a significant number of people, have a better chance of getting seats in parliament. This means a wider range of voices and views can be heard and considered in government. * Increased Voter Turnout: When voters feel their vote is more likely to count and contribute to a party's representation, they may be more inclined to participate in elections. * Reduced Tactical Voting: Under 'first past the post' systems, people often vote tactically for a party they don't strongly support to prevent a candidate they strongly dislike from winning. PR can reduce the need for this, allowing people to vote for the party they truly believe in. * More Diverse Parliaments: PR systems can encourage a broader spectrum of candidates and parties to stand, potentially leading to more diverse representation in terms of gender, ethnicity, and socio-economic background. * Coalition Governments and Consensus Building: PR often leads to coalition governments, where several parties must work together to form a majority. This can foster a culture of compromise and consensus-building, leading to more stable and widely supported policies. * Legitimacy of Outcomes: When electoral outcomes closely mirror the vote share, the resulting government and its decisions may be seen as more legitimate by the public. In essence, proportional representation matters because it promotes a more equitable and representative democracy, where the composition of your government more accurately reflects the will of the electorate.
The proportionality principle (afspiegelingsbeginsel) is the statutory method used to determine which employees are prioritised for redundancy. Employees are allocated 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, this gives you grounds to contest 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 during 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.
Before your employer can dismiss you during a restructuring, they must usually: * Inform you about the proposed restructuring and its reasons. * Explain how the restructuring might affect your job. * Consult with you (and any trade union or employee representative) about the proposed changes. This includes discussing alternatives to redundancy, such as redeployment, and considering any suggestions you make. * Consider alternative roles within the company. If a suitable alternative role exists, they should offer it to you. * Follow a fair selection process if redundancies are unavoidable. This means having objective criteria for deciding who will be made redundant, rather than choosing arbitrarily. * Give you the correct notice period or pay in lieu of notice. * Calculate and pay any statutory redundancy pay you are entitled to. * Allow you time off for job-seeking or training. * Ensure the dismissal is not unfair or discriminatory.
Your employer must first undertake 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.
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