Are you affected by collective redundancy in Eindhoven or the Brainport region, but is there (as yet) no social plan? If so, it is worth knowing exactly what you are entitled to and when you can take action. A social plan is by no means always guaranteed – but there are indeed ways for employees to push for a fair settlement.
What is a social plan and when is there a right to one
A social plan is a collective agreement outlining the consequences of a reorganisation for employees who are made redundant. This could include redundancy pay, support with finding alternative employment, training budgets, and the order in which redundancies are carried out. In essence, the plan details how the impact of redundancy will be mitigated.
It is important to know that a social plan is not a legal requirement. However, the Collective Redundancy Notification Act (Wet Melding Collectief Ontslag — WMCO) does oblige your employer to inform trade unions and the UWV (Employee Insurance Agency) and to consult with them when twenty or more redundancies are made within three months. In practice, this consultation almost always results in a social plan. If your employer has avoided that consultation, this constitutes a serious procedural error.
When does collective redundancy apply
Collective redundancy applies as soon as an employer intends to make at least twenty employees redundant within a single work area over a period of three months. This also applies to redundancies settled by means of a settlement agreement, as these count towards the WMCO threshold. In larger companies in the Eindhoven region, such as manufacturing or technology firms in the Brainport, this threshold can be reached quickly.
Once the WMCO applies, your employer must consult trade unions on ways to limit collective redundancies or mitigate their consequences. This can be done through redeployment, outplacement, or retraining. It is precisely this obligation to consult that forms the basis on which a social plan is established.
How legally robust is a social plan
Not all social plans have the same legal standing. Their legal status depends largely on how the plan was established:
- Social plan agreed with trade unions: This carries the strongest standing, comparable to a collective agreement (CAO). Courts rarely deviate from it. If union members approve the plan, it applies to all employees – including those who are not union members.
- Social plan agreed with the works council (Works Council): The works council has rights of advice and consent, but an agreement with the works council does not confer collective agreement status. Legally, the plan amounts to an offer to individual employees, which they may accept or contest.
- Plan drawn up unilaterally by the employer: An employer can create a social plan on their own, but such a plan has the least legal standing. A court can deviate from it more easily, and as an employee, you have more scope to negotiate or take legal action.
What must a social plan contain as a minimum?
A sound social plan contains concrete agreements regarding the position of employees declared redundant. If the plan is absent or inadequate, it is advisable to check what should be covered at a minimum. Consider the following elements:
- The criteria for declaring redundancy and the order of dismissal (generally determined by the reflection principle — *afspiegelingsbeginsel*)
- In 2026, the statutory redundancy pay will be one-third of a monthly salary per year of service, with a statutory maximum of €102,000 gross.
- Support in moving from one job to another, such as outplacement support or a mobility budget
- A training or redeployment budget and the period within which redeployment is sought
- The notice periods and the date on which the employment contract ends
Even so, it is wise to have the calculation checked, particularly where allowances, variable pay, or special terms and conditions of employment are involved.
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Plan a conversationWhen can you enforce or challenge a redundancy plan?
Your employer cannot be obliged to sign a social plan where no collective agreement obligation exists. However, there are situations in which you are well placed to exert influence or pursue legal proceedings:
- Your collective agreement obliges the employer to draw up a social plan — always check this as a first step.
- The employer has failed to comply with the WMCO notification obligation or has not consulted trade unions and the UWV in a timely manner.
- The social plan, drawn up unilaterally, deviates significantly from what is reasonable in comparable reorganisation processes.
- The employer is not applying an agreement reached with trade unions consistently, meaning you are being treated unequally compared with colleagues in the same situation.
- There is a dispute regarding the interpretation of the social plan, in which case the final decision rests with the cantonal court.
Practical steps to take if you are facing collective redundancy
If you find yourself involved in a reorganisation where collective redundancy is on the cards, act as soon as possible. The sooner you assess your situation, the more leverage you will have to negotiate.
- Please provide a copy of the social plan, or the draft social plan, immediately.
- Check your collective agreement for specific obligations relating to reorganisation and social plans.
- Confirm whether your employer has correctly followed the WMCO procedure: notification to the UWV and consultation with trade unions.
- If you haven't already done so, join a trade union – unions negotiate actively on behalf of their members regarding the content of the plan.
- Never sign a settlement agreement until you know whether the payment is correct and whether your entitlement to unemployment benefit (WW) remains intact.
- Have the calculation of your transition payment checked, including any allowances or variable components that form part of your salary.
- Seek legal advice from an employment lawyer in good time, particularly if there is no social plan or if you believe the procedure has not been followed correctly.
What does the cantonal court do in a dispute concerning the redundancy plan?
If you and your employer cannot reach an agreement on the application or content of the social plan, you can take the matter to the cantonal court. The court will assess whether the employer is applying the plan correctly and consistently. Where a unilaterally drawn-up plan is concerned, the court has greater freedom to award you a higher payment than the plan specifies. Where the plan has been agreed with trade unions, the threshold is higher — but even then there are situations in which deviation is justified, for example if the application produces a manifestly unreasonable outcome in your particular case.
For further background on rights and procedures relating to reorganisation and redundancy, see also the overview at Reorganisation and economic dismissal in Eindhoven.
Why Labour Lawyer Eindhoven
At Arbeidsjurist Eindhoven, we help employees in the Brainport region who are facing collective redundancy or an inadequate social plan. We quickly assess whether your employer has followed the correct procedure, if your payment has been calculated correctly, and if there is room for negotiation. Are you unsure if you're making the most of your situation? Get in touch, with no obligation, and we'll look together at what's possible for you.
Frequently asked questions
Is an employer required to draw up a social plan in the event of collective redundancy?
No, a social plan is not a legal requirement. However, the Collective Redundancy Notification Act (WMCO) does oblige the employer to inform trade unions and the UWV and to consult with them when twenty or more redundancies are made within three months. In practice, this consultation usually leads to a social plan. If your collective agreement contains an obligation to draw up a social plan, your employer cannot bypass this.
What is the difference between a social plan agreed with trade unions and a unilateral plan?
A social plan agreed with trade unions and approved by their members has the status of a collective agreement and is binding on all employees, including those who are not union members. A plan drawn up unilaterally by the employer carries far less legal weight. A court can deviate from it more readily, and as an employee you have greater scope to negotiate or seek a higher payment.
Can I as an employee claim more than the social plan offers?
This depends on how the social plan was established. Where a unilateral plan is concerned, the court has greater scope to award you a higher payment. Where a plan agreed with trade unions is concerned, the threshold is higher, but exceptions are still possible if the application produces an unreasonable outcome. Always have your situation assessed by an employment lawyer before signing.
What is the maximum transition payment in collective redundancy in 2026?
In 2026, the statutory transition payment amounts to one third of a monthly salary for each full year of service. The statutory maximum is €102,000 gross. If you earn more than €102,000 per year, your gross annual salary serves as the maximum. Company schemes often offer a higher payment than this statutory minimum, but always have the calculation checked.
What should I do if my employer has not correctly followed the WMCO procedure?
If your employer has failed to inform and consult trade unions or the UWV in a timely manner, the redundancy procedure may be invalid. You can challenge this before the cantonal court. Failure to comply with the WMCO notification obligation is a serious procedural error that a court may weigh heavily. Engage an employment lawyer as soon as possible to discuss your options.
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.
