Being made redundant in a reorganisation feels like a bolt from the blue, but it is not the end of the road. Before your employer can actually dismiss you, they must follow a lengthy process governed by strict legal rules. Understanding those rules puts you in a far stronger position when facing redundancy in Eindhoven.
What being made redundant means
Redundancy means that your post or established position is being abolished because the organisation is being restructured. Common reasons include cost savings, automation, a merger or the merging of departments. It is important to understand that your employment contract remains fully in force until it has been lawfully terminated. Your salary therefore continues to be paid, even if you have little or nothing left to do.
You are only officially redundant once you have received written notification to that effect. From that point 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 made redundant must not be arbitrary. In cases of dismissal on economic grounds, your employer is required in almost all circumstances to apply the mirror principle (afspiegelingsbeginsel). This means that employees in interchangeable roles are divided into age bands, and within each band those with the shortest service are the first to be considered for dismissal. The aim is to preserve the age distribution within a job group.
If this principle is applied incorrectly, the UWV (Employee Insurance Agency) may refuse to grant a dismissal permit. Always check whether the selection procedure was carried out transparently and correctly. Ask your employer for access to the supporting documentation and compare it against the statutory rules.
Redeployment – your employer's obligation
Dismissal is only appropriate once redeployment has been shown to be genuinely impossible. Your employer is legally required to undertake a serious investigation into whether a suitable or interchangeable role is available within the organisation, normally within a reasonable period of time. Only if that investigation demonstrably yields nothing can the dismissal process proceed.
Please note: a suitable role does not have 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, that may have consequences for your legal position.
Two routes to dismissal – UWV or settlement agreement
If redeployment genuinely proves impossible, there are two paths your employer may take:
- UWV dismissal permit the employer applies to the UWV for permission to terminate the employment contract. The UWV scrutinises whether the economic necessity exists, whether the mirror principle has been applied correctly and whether redeployment has been properly investigated.
- Settlement Agreement (VSO) The employer offers to end your employment by mutual consent. This is quicker and bypasses the UWV review, but you have the right to refuse this offer or to negotiate the terms.
If you opt for a settlement agreement, it is advisable to have its contents reviewed before you sign. Key points include the level of compensation, the notional notice period and the implications for your entitlement to unemployment benefit.
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Plan a conversationYour compensation – at least the statutory redundancy payment
If you are dismissed via the UWV or through the courts, you are entitled to a statutory redundancy payment (transitievergoeding). The calculation is straightforward: you receive one third of a gross monthly salary for each complete year of service. In 2026 the statutory maximum is €102,000 gross, or one gross annual salary if that figure is higher.
Some employers offer a higher payment in a settlement agreement or social plan to avoid a lengthy procedure. This is a genuine negotiating point, particularly if you have long service or if the selection procedure was not entirely sound.
The social plan – what it means for you
When your employer is making several people redundant at once, there is often a social plan in place. This plan is typically drawn up in consultation with the works council and, where applicable, the trade unions. It sets out arrangements for redeployment, outplacement support, job-to-job guidance and the level of compensation. Check whether such a plan applies and whether the settlement agreement you have been offered actually reflects what it contains.
Practical steps to take if you have been made redundant
- Request written reasons for your redundancy declaration and details of the selection method used.
- Verify that the mirror principle has been correctly applied within your job group.
- Find out whether a social plan or collective agreement applies that establishes rights for you.
- Never sign a settlement agreement immediately; you have a cooling-off period and the right to negotiate.
- Have your redundancy or termination payment calculation checked.
- Keep a careful record of all correspondence with your employer, in case the situation escalates.
- Seek legal advice in good time so that you are aware of your position before any decisions are made.
When to take the matter to court
If it subsequently transpires that the dismissal did not meet the legal requirements, you can challenge it. Grounds might include an incorrectly applied mirror principle, an inadequate redeployment investigation or an insufficient payment. In such cases you can bring proceedings before the subdistrict court (kantonrechter). Be aware of limitation periods: in employment law these are short. Do not wait too long to act if you have doubts about the validity of your dismissal. Read more about all the legal options in the overview of Reorganisation and dismissal on economic grounds in Eindhoven.
Why Labour Lawyer Eindhoven
At Arbeidsjurist Eindhoven, we possess an in-depth understanding of the local labour market within Eindhoven and the Brainport region. We offer support to employees who have been made redundant, assisting them in evaluating their circumstances, reviewing their compensation, and undertaking negotiations. Should you have any concerns regarding a selection procedure, or if you've received a settlement agreement that you wish to have examined, please do not hesitate to contact us without any obligation. We are more than happy to help you determine the most beneficial course of action for your specific situation.
Frequently asked questions
What does it mean to be made redundant in a reorganisation?
Being made redundant means that your post or established position is being abolished as a result of a reorganisation. However, your employment contract remains fully in force and your salary continues to be paid until the contract has been lawfully terminated by means of a settlement agreement, a UWV dismissal permit or a court ruling.
Am I entitled to a redundancy payment when I am made redundant?
Yes. If you are dismissed following a redundancy declaration, you are in principle entitled to at least the statutory redundancy payment. In 2026 this amounts to one third of a gross monthly salary for each complete year of service, up to a maximum of €102,000 gross (or one gross annual salary if that is higher). Through a social plan or by negotiating a settlement agreement, the payment may be higher.
Yes, you can refuse a settlement agreement if you have been made redundant. It is your decision whether to sign it or not.
Yes, you can. A settlement agreement (VSO) is a proposal to end employment by mutual consent. You are never obliged to sign it. If you do sign, you have a statutory three-week cooling-off period in which you can withdraw from the agreement. Always have the contents reviewed by an employment lawyer before you put your signature to it.
What is the mirror principle and why does it matter to me?
The mirror principle is the statutory method used to determine which employee within an interchangeable job group is the first to be considered for dismissal. Employees are divided into five age bands and selected on the basis of length 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.
Your employer has 26 weeks to find a suitable alternative role for you.
Your employer is required to conduct a genuine investigation into whether redeployment to a suitable role is possible, normally within a reasonable period of up to 26 weeks depending on the circumstances. Only if that investigation demonstrably produces no result can the dismissal process proceed. It is worth having a specialist check whether your employer carried out this investigation with sufficient care.
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