Are you affected by a large-scale round of redundancies at your employer in Eindhoven or the Brainport region? If so, this may constitute collective redundancy. Fortunately, the law affords you greater protection as an employee than in an ordinary individual dismissal. In this article, you will find exactly what collective redundancy entails, which rules your employer must comply with, and what steps you can take to safeguard your position.
When does collective redundancy apply
Not every dismissal where several colleagues leave at the same time automatically falls under the statutory rules for collective redundancy. Collective redundancy only applies when three conditions are met simultaneously.
First, your employer must intend to end at least twenty employment contracts. Second, those redundancies must occur within a continuous period of three months. Third, the employees concerned must be working within a single UWV employment district.
It is important to note that the form of dismissal is irrelevant. Whether you receive a settlement agreement (vaststellingsovereenkomst, VSO), your employer initiates a UWV procedure, or the matter is referred to the cantonal court — all forms of termination initiated by the employer count towards the threshold of twenty.
The Collective Redundancy (Notification) Act and what it means for you
Once the above threshold is met, the Wet melding collectief ontslag (WMCO — Collective Redundancy Notification Act) applies. This Act imposes a series of obligations on your employer that are specifically designed to protect your interests.
The two main obligations are a duty to notify and a duty to consult. Your employer must notify the UWV and the relevant trade unions in writing of their intention to proceed with collective redundancy. The employer must then consult with the trade unions on the possibilities of reducing the number of dismissals or mitigating their consequences.
In addition to trade unions, the works council (ondernemingsraad, OR) also plays a part. Under the Works Councils Act, the OR has the right to be consulted on important decisions such as a large-scale reorganisation. If your employer disregards that advice, the OR may apply to the Enterprise Chamber in Amsterdam.
The one-month waiting period
One of the most employee-friendly aspects of the WMCO is the mandatory waiting period. Once the notification to the UWV is complete, your employer may not proceed with the proposed dismissals for a period of one month. This also means that no settlement agreement may be offered or signed during that period.
This month serves a purpose: it gives you, the trade unions, and the works council the opportunity to explore alternatives and, where appropriate, agree on a redundancy scheme. The waiting period only lapses if the relevant trade unions declare in writing that they have been consulted and agree to the dismissals.
The redundancy scheme — your safety net in collective redundancy
In practice, a redundancy scheme (sociaal plan) is often drawn up in cases of collective redundancy. It sets out the arrangements for mitigating the consequences of the dismissals. This may include outplacement support, a period in which to find new employment, and any additional payments on top of the statutory transition payment.
A redundancy scheme developed in collaboration with trade unions carries more weight than one drawn up unilaterally by the employer. In the former case, it may even have the status of a collective labour agreement (collectieve arbeidsovereenkomst, cao), which increases your legal certainty. That said, drawing up a redundancy scheme is not a statutory requirement; employers and trade unions are only obliged to consult on it.
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Plan a conversationPay close attention to what the redundancy scheme states about the order of dismissal. In a collective redundancy, the reflection principle (afspiegelingsbeginsel) is compulsorily applicable. This principle determines which employees are eligible for dismissal, based on age groups within an interchangeable job category. For further background information, see also the detailed explanation at Reorganisation and economic dismissal in Eindhoven.
Your right to a transition payment
Even in a collective redundancy, you as an employee are entitled to a transition payment, unless a collective labour agreement includes an equivalent replacement arrangement aimed at preventing or reducing unemployment. The statutory calculation is straightforward: you accrue one third of a gross monthly salary for each full year of service, calculated from your first working day.
In 2026, the maximum statutory transition payment is €102,000 gross. If your annual salary exceeds this amount, your full gross annual salary serves as the statutory maximum. Always compare this with what any redundancy scheme offers; the scheme may sometimes provide a higher payment, but this is by no means always the case.
What if your employer does not comply with the WMCO
The WMCO has teeth. If your employer fails to comply with the notification duty, the consultation obligation, or the one-month waiting period, the dismissals carried out or settlement agreements concluded may be annulled. In practice, this means that the employment contract is deemed to have continued, with all the financial consequences that entails.
Do you suspect that your employer has not followed the rules correctly? Do not wait too long. There are strict time limits within which you must take action to have the dismissal annulled.
Practical tips if you are facing collective redundancy
- Check whether the number of dismissals reaches the threshold of twenty within three months, including colleagues who receive a settlement agreement.
- Verify that the notification to the UWV and the trade unions was actually made before any dismissal proposal is put forward.
- Do not sign a settlement agreement during the one-month waiting period unless you are fully aware of your rights.
- Read the redundancy scheme carefully and compare the payment offered with the statutory transition payment for 2026.
- Check whether the reflection principle has been correctly applied in the selection of employees made redundant.
- Be aware of the fourteen-day cooling-off period after signing a settlement agreement; you may withdraw the VSO in writing during that period.
- Seek advice from an employment law specialist in good time, particularly if you have doubts about the fairness of the offer or the procedure followed.
Why Labour Lawyer Eindhoven
At Arbeidsjurist Eindhoven, we possess extensive knowledge of the local labour market in Eindhoven and the broader Brainport region. Whether you've received a settlement agreement proposal, have concerns about the amount of your transition payment, or suspect the WMCO procedure hasn't been followed correctly – we'll work with you directly and pragmatically. Get in touch for a no-obligation consultation and discover how we can assist you.
Frequently asked questions
In the Netherlands, collective redundancy applies from eleven dismissals within a period of three months.
Collective redundancy applies as soon as an employer terminates twenty or more employment contracts within three months within a single UWV employment district, regardless of whether this is done via a UWV procedure, the cantonal court, or a settlement agreement.
Yes, your employer can offer you a settlement agreement immediately in the case of collective redundancy.
No. Following the mandatory notification to the UWV and the trade unions, a one-month waiting period applies. During that month, your employer may not proceed with the dismissal and therefore may not offer or have a settlement agreement signed.
Am I entitled to a redundancy scheme in the event of collective redundancy?
An employer is not legally obliged to draw up a redundancy scheme, but they are required to consult with trade unions on the possibilities for mitigating the consequences of the dismissals. In practice, a redundancy scheme is almost always agreed upon in large-scale redundancy situations.
What is the maximum transition payment in collective redundancy in 2026?
In 2026, the statutory maximum transition payment is €102,000 gross. If your annual salary exceeds this amount, your full gross annual salary serves as the maximum. You accrue one third of a gross monthly salary for each full year of service.
What can I do if my employer has not complied with the WMCO rules?
If your employer has failed to comply with the notification duty, the consultation obligation, or the one-month waiting period, the dismissal or termination agreement may be annulled. You must act promptly, however. Have your situation assessed by an employment law specialist as soon as possible.
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.
