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.
A social plan is a document created by an employer when they are proposing to make significant redundancies. It sets out the measures the employer will take to mitigate the negative effects of these redundancies on the employees affected. The right to a social plan typically arises when an employer proposes to make a certain number of redundancies within a specific period. The exact thresholds and triggers for a social plan can vary depending on national legislation and any collective bargaining agreements in place. In the UK, for example, employers have a legal obligation to consult with affected employees about proposed redundancies. If an employer proposes to make 20 or more redundancies at a single establishment within a 90-day period, there are specific legal requirements to inform and consult with employee representatives. While a formal "social plan" as a distinct legally mandated document isn't always specified by this name in UK law, the process of consultation inherently requires employers to consider measures to avoid or mitigate redundancies, or to reduce their number, or to mitigate their consequences. This might include redeployment opportunities, retraining, outplacement services, or early retirement options, which are the types of things typically found in a social plan. Generally, the principle behind a social plan is to ensure that employees facing redundancy are supported through the process and are given the best possible chance to find alternative employment or to manage the transition.
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.
Collective redundancy applies when an employer makes a number of employees redundant over a specific period. The exact number of employees and the period are defined by law, but generally, it's considered a collective redundancy if: * Ten or more employees are made redundant at the same establishment within a 30-day period. There are usually specific legal procedures that an employer must follow in cases of collective redundancy, including: * Consulting with employee representatives (such as trade unions or elected employee representatives). * Notifying the Secretary of State (or the relevant government department). * Observing specific timescales for consultation and notification. These procedures are designed to protect employees' rights and give them a better chance of finding alternative employment.
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.
The difference between a social plan agreed with trade unions and a unilateral plan lies primarily in the process of their creation and implementation, and the level of stakeholder involvement. A social plan agreed with trade unions is a collaborative document. It is negotiated and jointly developed by the employer and the relevant trade unions representing the employees. This usually happens in situations where significant changes are anticipated that may affect the workforce, such as redundancies, restructuring, or a change of ownership. Key characteristics include: * Negotiation and Consultation: The process involves extensive dialogue, consultation, and negotiation between the employer and trade unions. Unions act as representatives of the employees' interests. * Agreement: The final plan is one that both parties have agreed upon. This means it typically incorporates measures designed to mitigate the negative impact on employees, such as enhanced redundancy packages, retraining opportunities, outplacement services, preferential re-employment rights, or phased retirements. * Legitimacy and Buy-in: Because it's agreed upon, there's generally greater legitimacy and buy-in from the workforce, which can lead to smoother implementation and reduced industrial disputes. * Legal/Contractual Basis: These plans often form part of a collective agreement or have a legally binding status. A unilateral plan is a plan developed and implemented solely by the employer without formal agreement or significant consultation with trade unions or employee representatives. While an employer typically has the right to manage their business, decisions that significantly impact the workforce *may* still require some level of consultation depending on local legislation and existing agreements. Key characteristics include: * Employer-Driven: The employer decides the terms and conditions of the plan independently. * Limited Employee Input: While there might be some information sharing or consultation (depending on legal requirements), employees and their representatives do not have a formal say in shaping the plan's content. * Potential for Conflict: Unilateral plans can lead to dissatisfaction, grievances, and industrial action from employees and trade unions due to a perceived lack of fairness or respect for their interests. * Legal Compliance: The employer must still ensure the plan complies with all relevant employment laws and regulations regarding redundancies, notice periods, and fair treatment. In summary, the core difference is who has a say in crafting the plan. A social plan agreed with trade unions is a product of joint decision-making, aiming for a balanced approach that considers both business needs and employee welfare. A unilateral plan is dictated by the employer, with employee interests being managed within the framework of legal obligations and employer discretion.
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.
If your employer has not correctly followed the WMCO procedure, you should consider the following steps: 1. Review the WMCO Procedure: Make sure you have a clear understanding of the WMCO procedure and how it was not followed. Refer to any official documentation or guidelines you have access to. 2. Gather Evidence: Collect any evidence that supports your claim that the procedure was not followed. This could include emails, messages, meeting minutes, witness statements, or any other relevant documentation. 3. Speak to Your Employer/Manager: The first step is usually to raise your concerns directly with your employer or line manager. Explain clearly and calmly which part of the WMCO procedure you believe has not been followed and why. Provide your evidence. It's possible it's a misunderstanding or an oversight that can be resolved informally. 4. Consult Your Trade Union or Employee Representative: If you are a member of a trade union or have an employee representative available, they can offer advice and support. They may be able to help you negotiate with your employer or represent you in discussions. 5. Formal Grievance Procedure: If speaking to your manager does not resolve the issue, you may need to initiate a formal grievance procedure within your company. Check your employee handbook or company policies for details on how to do this. You will typically need to submit a written grievance outlining your concerns and the desired resolution. 6. Seek External Advice: If internal procedures do not resolve the matter, or if the issue is particularly serious, you may wish to seek external advice. This could include: * ACAS (Advisory, Conciliation and Arbitration Service): ACAS provides free and impartial advice on employment rights and obligations in the UK. They can help with mediation and dispute resolution. * Citizens Advice: Citizens Advice offers free, confidential advice on a wide range of issues, including employment law. * Employment Solicitor: For more complex or serious situations, you may want to consult an employment solicitor who can provide legal advice and representation. 7. Consider Your Options: Depending on the severity of the breach and the impact it has had on you, your options might include seeking a resolution, requesting the procedure be followed correctly, or, in more serious cases, considering legal action. Important Note: The specific steps and your rights will depend on the exact nature of the WMCO procedure, your employment contract, and UK employment law. Always refer to official company policies and seek advice where necessary.
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.
