Business Closure Eindhoven: What Are Your Rights in Bankruptcy or Liquidation?

When a business closes or becomes insolvent, you have important rights as an employee. If your employer in Eindhoven shuts its doors — whether voluntarily, by ceasing to trade, or through insolvency — you suddenly lose your job. That is a major upheaval, but you are not left empty-handed. Depending on the manner in which the business ends, different rules apply regarding your salary, dismissal procedure, and any payment you may be entitled to.

Voluntary closure and liquidation

Not every business closes under compulsion. Sometimes an entrepreneur decides to stop of their own accord — for example, upon retirement, due to health issues, or because no suitable successor can be found. Reorganisation and Redundancy in Eindhoven falls under the same statutory rules as an ordinary business closure: the employer is in principle free to wind up their business, but must be able to substantiate their reasons for doing so.

A deliberate, orderly closure is typically followed by a liquidation phase. During that phase, debts are settled, assets are converted to cash, and contracts are terminated. For employees, this means that dismissal must be arranged either through the UWV or by means of a settlement agreement.

How dismissal works when a business closes

Your employer can dismiss you upon a business closure via two routes. The most commonly used is the application for dismissal permission with the UWV. The UWV then assesses whether the stated reason for closing the business is valid and whether the activities are genuinely being ceased. Documents such as a notice of termination of the business premises lease or evidence that the inventory is being sold are taken into account. If the UWV approves the application, your employer may only then terminate the employment contract, observing the notice period.

The second route is the settlement agreement. The employer and employee then agree the terms for ending the employment relationship between themselves, such as the end date and any payment. Pay close attention to ensure that such an agreement is drawn up correctly so that your entitlement to unemployment benefit (WW) is not put at risk.

Your right to a transition payment upon business closure

Are you being dismissed via the UWV because the business is closing? In principle, you are then entitled to a transition payment. The calculation is straightforward: for each year worked you receive one third of a monthly salary. In 2026 the statutory maximum is €102,000 gross, or one gross annual salary if that is higher.

In a voluntary closure through a settlement agreement, you do not strictly have a statutory entitlement to a transition payment, but in practice a severance payment is agreed that is close to the transition payment. Always have the agreement reviewed before you sign it.

Insolvency — what changes in that situation

In the event of bankruptcy, the situation is different. The court appoints a liquidator to wind up the business. As an employee you can submit your outstanding claims to the liquidator, but in practice the funds available for this are often limited.

Fortunately, a safety net exists: the UWV's wage guarantee scheme. When your employer is no longer able to pay, the UWV temporarily takes over the payment obligations. Specifically, the UWV covers outstanding wages for a maximum of thirteen weeks before the termination date, wages during the notice period up to a maximum of six weeks, and unpaid holiday pay and unused holiday entitlement for a maximum of one year. You apply for this benefit via Mijn UWV.

As regards the transition payment: in the event of bankruptcy, the employer is not legally obliged to pay it, because they are financially unable to do so. It is therefore wise to check whether there are nonetheless any possibilities, for example if the business is being restarted.

Business restart — watch your position

A restart means that another party takes over (part of) the bankrupt business. This may sound like good news, but as an employee you need to be alert. Upon a restart following bankruptcy, your employment does not automatically transfer to the new owner, as may be the case with a regular transfer of undertaking. You may therefore still lose your job. Furthermore, if the new employer offers you an employment contract, you begin accruing a new period of service, and your entitlement to the transition payment for the previous employment relationship lapses.

Practical steps when your employer closes or becomes insolvent

• Register with the UWV for the wage guarantee scheme as soon as possible; do not wait too long to safeguard your entitlements.
• Request an overview of your outstanding wages, holiday pay, and accrued but untaken holiday days without delay.
• Register with the UWV for unemployment benefit (WW) as soon as you know when your employment will end.
• Do not sign a settlement agreement without first having it assessed by a legal professional.
• Check whether the company operates under a collective labour agreement (cao); this may contain additional provisions regarding payments upon closure.
• Ask the liquidator for an update on the status of your claim as a preferential creditor.
• Find out whether a restart (doorstart) is taking place or is imminent, as this has direct consequences for your legal position.

Help with your rights upon business closure or insolvency

A company closure or insolvency often hits without warning. At Arbeidsjurist Eindhoven we are happy to support you, whether it concerns reviewing a settlement agreement, assessing your transition payment, or protecting your position in the event of a restart. We know the local labour market in Eindhoven and the Brainport region and will think through the practicalities with you. Contact us without obligation for an initial conversation, so you quickly know where you stand.

Frequently asked questions

Am I entitled to a transition payment if my employer goes bankrupt?

In the event of bankruptcy, your employer is not legally obliged to pay the transition payment, as they are financially unable to do so. You can, however, claim unpaid wages and wages during the notice period through the UWV wage guarantee scheme. There is no UWV guarantee for the transition payment itself, as there is for wages. Ask an employment lawyer to examine whether there are any options in your particular situation.

What does the UWV wage guarantee scheme cover in the event of bankruptcy?

The wage guarantee scheme covers unpaid wages for a maximum of thirteen weeks prior to the date on which your contract was terminated, wages during the notice period up to a maximum of six weeks, and unpaid holiday pay and holiday entitlement accrued over a maximum of one year. You apply for this through Mijn UWV as soon as the bankruptcy has been declared.

What happens to my employment when a company restarts after bankruptcy?

When a company restarts after bankruptcy, your employment contract does not automatically transfer to the new owner. The administrator (curator) can terminate your contract, and the new party may or may not offer you a new contract. If you accept that offer, you begin a new employment relationship and your right to a transition payment for the period with the previous employer lapses.

How will I be dismissed in the event of a voluntary company closure in Eindhoven?

Your employer can apply for a dismissal permit from the UWV. The UWV will then assess whether the closure of the business is plausible and sufficiently substantiated. Alternatively, employer and employee can jointly enter into a settlement agreement. In that case, ensure the agreement is drawn up correctly so that your entitlement to unemployment benefit (WW) is preserved.

Am I entitled to unemployment benefit (WW) after dismissal due to company closure?

Yes, in principle you are entitled to unemployment benefit (WW) following dismissal on economic grounds, provided you meet the weeks requirement (in the 36 weeks prior to your unemployment you must have worked in at least 26 weeks). Register with the UWV as soon as possible so that your benefit commences in time. In the case of a settlement agreement, it is crucial that the notional notice period is correctly incorporated.

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.