UWV Redundancy Permit for Business Economic Reasons: How UWV Assesses Your Employer

Does your employer simply obtain a dismissal permit by citing business-economic reasons? No — UWV scrutinises the application critically on several points before granting permission. Understanding how that assessment works gives you as an employee a stronger position in the procedure.

When does your employer apply for a dismissal permit

If employer and employee cannot reach agreement through mutual consultation, the employer must follow a formal route for a business-economic dismissal. The employer must apply to UWV for a dismissal permit. Only after UWV has granted that permit may the employment contract be terminated. If your collective labour agreement provides for an independent dismissal committee, the application goes there instead of to UWV; that committee applies the same substantive assessment standards.

Business-economic reasons are broad: declining turnover, loss of contracts, organisational changes, automation, or the closure of a branch are all possible grounds. The nature of the reason determines which documents the employer must submit.

Three elements that UWV always assesses

The substantive assessment by UWV is divided into three fixed steps: the assessment of the business-economic reason itself, the check on the correct order of dismissal, and the assessment of the redeployment efforts. Only when all three steps have been substantiated convincingly will UWV grant the permit.

Step 1: substantiating the business-economic reason

The UWV assesses whether the reasons put forward by the employer sufficiently support the dismissal application. A so-called marginal review applies: the UWV does not substitute its own judgement for that of the business owner and does not assess whether the business strategy is the best choice. What the UWV does do is verify whether the employer makes it plausible that the loss of jobs is necessary for efficient business operations. In cases of a poor financial situation, the UWV will typically request annual accounts and an overview of turnover developments over the past few years. If the supporting documentation is lacking, or if there are obvious alternatives that the employer has not considered, the UWV will refuse the permit.

Step 2: the order of dismissal

If the reason is considered plausible, the UWV then examines whether the correct employee has been put forward for dismissal. In most cases, the reflection principle (afspiegelingsbeginsel) applies: employees are divided into age categories per job group, and within each category the employee with the shortest length of service is the first to be considered for dismissal. If your employer makes errors in applying this order, that may be a ground for refusing the permit or for submitting a defence.

Stap 3: herplaatsing

Finally, the UWV assesses whether the employer has genuinely looked into whether you could be redeployed elsewhere within the organisation, if necessary following retraining. If the employer cannot demonstrate this convincingly, that too is a ground for refusing the permit.

How the procedure works in practice

The application consists of three forms: part A containing the employer's details, part B containing the details of the employees concerned, and part C containing the substantive explanation of the reason for dismissal. The UWV first assesses whether the application is complete. If any documents are missing, the employer is given the opportunity to supply them.

Once the application is complete, you as the employee will receive a copy of all submitted documents. You will have fourteen days to submit a written defence. The UWV may then decide on a second written round if there are points requiring further clarification. The total processing time is generally four to eight weeks, depending on the completeness of the application and the complexity of the case.

If the UWV grants the permit, your employer has four weeks to give notice to terminate the employment contract. The time taken by the UWV procedure may be deducted from the applicable notice period, provided that at least one month remains.

What you as an employee can do

During the procedure you have real opportunities to defend yourself. A well-substantiated defence can make all the difference. Consider the following:

• Verify whether the business-economic reason stated corresponds with the financial reality of the company.
• Check whether the reflection principle (afspiegelingsbeginsel) has been applied correctly and whether you are indeed the right person to be considered for dismissal.
• Examine whether your employer has genuinely explored opportunities for redeployment within the organisation.
• Check whether any prohibition on dismissal applies, for example on grounds of illness, pregnancy, or membership of the works council.
• Submit your defence in good time: you have fourteen days from receipt of the documents.
• Keep all written communications with your employer carefully.

If, following the UWV's decision, you still disagree with it, you may submit a petition to the subdistrict court within two months of the end of the employment contract. The subdistrict court will review the entire case afresh and is not bound by the UWV's findings.

Current implementation rules as of July 2025

As of 1 July 2025, the UWV Implementation Rules for dismissal on business-economic grounds have been updated. The substantive assessment criteria for most situations have remained largely unchanged, but a new chapter has been added covering dismissal in the context of a transfer of undertaking. In it, the UWV sets out when dismissal on business-economic grounds is possible in connection with a business acquisition or merger, and what information is required for this. If you are involved in a reorganisation in the context of a business acquisition, these rules are particularly relevant to your situation. More background on reorganisations and the associated dismissal procedures can be found on the overview page. Reorganisation and Redundancy in Eindhoven.

Assistance with the UWV assessment of your dismissal permit

A UWV procedure in the context of dismissal on business-economic grounds is not a mere formality. The quality of your defence largely determines whether the permit is granted and on what terms you leave. At Arbeidsjurist Eindhoven we know the UWV implementation rules inside out and know precisely where your employer may be vulnerable. Whether you want help drafting your defence, are unsure whether the correct dismissal order has been followed, or want to know whether proceedings before the subdistrict court have a reasonable prospect of success: we are happy to think things through with you. Contact us without obligation for an initial consultation. We are easily accessible for employees in Eindhoven and the entire Brainport region.

Frequently asked questions

Does the UWV always have to grant permission if my employer has business-economic problems?

No. The UWV always assesses whether the stated reasons adequately support the dismissal application, whether the correct dismissal order has been followed, and whether redeployment has been genuinely explored. If the substantiation is deficient on any of these points, the UWV may refuse the permit.

How long does a UWV procedure for dismissal on business-economic grounds take?

Once the application is complete, the processing period is generally four to eight weeks. The duration depends on the completeness of the application and whether the UWV considers an additional written round necessary. If a dismissal advisory committee is involved, the period may extend to five weeks or longer.

What can I do if the UWV grants the dismissal permit anyway?

You can no longer lodge an objection with the UWV itself, but you may submit a petition to the subdistrict court within two months of the end of your employment contract. The subdistrict court reviews the matter in full and is not bound by the UWV's decision.

How do I put forward a defence in a UWV procedure?

After receiving the dismissal application, you have fourteen days to respond in writing. In that defence you can challenge the business-economic substantiation, point out errors in the application of the reflection principle, or indicate that redeployment has not been genuinely explored. An employment lawyer can assist you with this.

Do different rules apply if my collective labour agreement has a dismissal committee?

Yes, some collective labour agreements stipulate that the dismissal application must be submitted not to the UWV but to an independent collective-labour-agreement dismissal committee. That committee applies the same substantive assessment criteria as the UWV, unless the collective labour agreement expressly contains different rules on the dismissal order.

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.