No – the UWV critically scrutinises the application 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 redundancy permit?
If the employer and employee cannot reach an agreement through mutual consultation, the employer must follow a formal route for a business economic dismissal. They must apply for a redundancy permit from the UWV. The employment contract may only be terminated once the UWV has granted that permit. If your collective agreement (CAO) has an independent dismissal committee, the application goes there instead of to the UWV; that committee applies the same substantive assessment standards.
Business and 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 provide.
Three elements always assessed by the UWV
The UWV's substantive assessment comprises three fixed steps: evaluating the business economic reason itself, checking that the correct redundancy order has been followed, and assessing the efforts made to redeploy the employee. Only once all three steps have been convincingly substantiated will the UWV grant the permit.
Trin 1: Substantiating the business economic reason
The UWV assesses whether the reasons put forward by the employer sufficiently support the redundancy application. A so-called marginal review applies here: the UWV does not second-guess the entrepreneur and does not evaluate whether the business strategy is the best choice. What the UWV does do is check whether the employer plausibly demonstrates that the loss of positions is necessary for an efficient business operation. In the case of a poor financial situation, the UWV will typically request annual accounts and an overview of turnover developments over recent years. If the substantiation is lacking, or if there are obvious alternatives the employer has not considered, the UWV will refuse the permit.
Step 2: the order of redundancy
Once the reason has been established as plausible, the UWV examines whether the correct employee has been put forward for dismissal. In most cases, the mirror principle (afspiegelingsbeginsel) applies: employees are divided into age categories within their job group, and within each category the employee with the shortest length of service is the first to be considered for redundancy. If your employer makes errors in this order, that can be grounds to refuse the permit or for you to submit a defence.
Step 3: redeployment
Finally, the UWV assesses whether the employer has genuinely explored whether you could be redeployed elsewhere within the organisation, with retraining if necessary. If the employer cannot demonstrate this convincingly, that too is grounds to refuse the permit.
How the procedure works in practice
The application comprises three parts: Part A with the employer’s details, Part B with the details of the employees concerned, and Part C with the substantive explanation of the grounds for dismissal. The UWV initially assesses whether the application is complete. If documents are missing, the employer is given the opportunity to supply them.
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Plan a conversationOnce the application is complete, you as the employee receive a copy of all submitted documents. You are given fourteen days to submit a written defence. The UWV may then decide on a second written round if there are still 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 terminate the employment contract. The time taken up by the UWV procedure may be deducted from the applicable notice period, provided at least one month remains.
What you can do as an employee
During the procedure, you have genuine opportunities to defend yourself. A well-substantiated defence can make all the difference. Consider the following:
- Check whether the business justification provided corresponds to the company’s financial situation.
- Verify whether the mirror principle has been applied correctly and whether you are indeed the right person to be put forward for redundancy.
- Check whether your employer has genuinely looked for redeployment opportunities within the organisation.
- Check whether any dismissal prohibitions apply, for example due to illness, pregnancy, or membership of the works council.
- Submit your defence on time: you have fourteen days from receipt of the documents.
- Keep all written correspondence with your employer carefully.
If, after the UWV's decision, you still disagree with the outcome, you can submit a petition to the subdistrict court (kantonrechter) within two months of the end of the employment contract. The court reviews the entire case afresh and is not bound by the UWV's decision.
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 standards for most situations remain largely unchanged, but a new chapter has been added on dismissal in the context of a business transfer. In it, the UWV clarifies when business economic dismissal is possible in connection with a business acquisition or merger, and what information is required for this. If you are involved in a redundancy process linked to a business acquisition, these rules are particularly relevant to your situation. Further background on redundancies and the associated dismissal procedures can be found on the overview page. Redundancy and business economic dismissal in Eindhoven.
Why Labour Lawyer Eindhoven
A UWV procedure for business economic dismissal is not a formality. The quality of your defence largely determines whether the permit is granted and on what terms you depart. At Arbeidsjurist Eindhoven, we know the UWV’s implementation rules inside out and know precisely where your employer may be vulnerable. Whether you want help drafting your defence, have doubts about the correctness of the redundancy order, or want to know whether proceedings before the subdistrict court have a realistic chance of success – we are happy to think through your options with you. Get in touch for a no-obligation initial consultation. We are easily accessible for employees in Eindhoven and the wider Brainport region.
Frequently asked questions
Does the UWV always have to grant permission if my employer is experiencing business economic difficulties?
No. The UWV always assesses whether the stated reasons sufficiently support the redundancy application, whether the correct redundancy order has been followed, and whether redeployment has been genuinely explored. If sound substantiation is lacking on any one of these points, the UWV may refuse the permit.
How long does a UWV procedure for business economic dismissal 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 a further 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 redundancy permit anyway?
You can no longer appeal to the UWV itself, but you can submit a petition to the subdistrict court within two months of the end of your employment contract. The court assesses the case entirely afresh and is not bound by the UWV's decision.
How do I submit a defence in a UWV procedure?
After receiving the redundancy application, you have fourteen days to respond in writing. In that defence you can challenge the business's economic substantiation, identify errors in the mirror 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 agreement includes a dismissal committee?
Yes. In some collective agreements it is stipulated that the redundancy application must be submitted not to the UWV, but to an independent CAO dismissal committee. That committee applies the same substantive assessment standards as the UWV, unless the collective agreement expressly contains different rules on the redundancy order.
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