Redundancy during a restructuring in Eindhoven, can your employer simply dismiss you?

Can your employer dismiss you in a reorganisation?

Can your employer simply dismiss you during a reorganisation? Not always. If you are facing dismissal in a reorganisation in Eindhoven or the surrounding area, it is worth knowing that your employer must comply with strict rules. Dismissal on business-economic grounds is subject to stringent conditions, and knowing those rules puts you in a considerably stronger position. This article explains exactly how it works.

What a reorganisation means for your job

A reorganisation means a company is adjusting its structure, functions, or working methods. This can happen due to financial difficulties, departments being merged, or technology making certain tasks redundant. For you as an employee, it could mean your role is changing or disappearing altogether.

However, your employer cannot dismiss you just like that. A dismissal for business economic reasons cannot be done just like that. There are clear legal rules of the game, and they exist for good reason.

The dismissal permit via the UWV

If your employer wants to dismiss you for business-economic reasons, permission is required in most cases. In the case of dismissal for economic reasons, the employer requests a dismissal permit from UWV. That is not a formality: the UWV will assess the application on its merits.

Your employer must demonstrate the following:

• There is a business-economic reason why your dismissal is necessary, and the situation is unlikely to change within 26 weeks.
• Your employer is following the correct dismissal order.
• Your employer cannot redeploy you within a reasonable time.
• For permission from the UWV, your employer must prove the company's economic reasons – merely mentioning them is insufficient.

Please note: the dismissal permit from the UWV is only valid for 4 weeks after the issue date. If your employer does not make use of it, the permit will expire and the procedure must be repeated.

The reflection principle determines who is made redundant

Not everyone can just be the first to be fired. When an employer has to dismiss multiple people at the same time for business economic reasons, the reflection principle determines who is eligible for dismissal. This prevents arbitrariness and ensures a balanced age structure.

The reflection principle means that employees are divided into age groups, and within each age group, the employee with the shortest service is the first to be considered for redundancy, so that the age structure of the workforce remains as similar as possible before and after the redundancy round.

Do you think the order is incorrect? Then that is strong grounds to object. An employment lawyer can check the calculation for you.

Redeployment takes precedence over dismissal

Before your employer can dismiss you, there is a statutory duty to redeploy. Employers have a legal obligation to redeploy employees before proceeding with dismissal. This obligation specifically applies to situations where jobs are lost due to economic reasons.

Employers must first seriously investigate whether a suitable position is available within the organisation before they may dismiss an employee, and that means they must hold redeployment discussions and discuss training opportunities.

The employer does not have to guarantee that redeployment will be successful, but they must demonstrate that they have made serious and active efforts. If your employer does not do that, the dismissal can be challenged.

Signing a settlement agreement, or not

Sometimes, during a reorganisation, your employer may not offer a UWV procedure, but a settlement agreement (VSO). This is a written agreement whereby you leave employment by mutual consent. Your employer may try to pressure you into signing a settlement agreement within a few days. You do not have to comply with this.

Did you sign it after all? You still have time by law to change your mind. After signing your settlement agreement, you as an employee have the right to terminate that agreement within two weeks (14 days) without giving a reason. If the reflection period is not included in the settlement agreement, it shall be extended and shall be 21 days.

Your rights in case of collective redundancy

If it concerns larger numbers of dismissals at the same time, additional obligations will apply. In the Netherlands, collective redundancy occurs when an employer intends to dismiss at least 20 employees within a three-month period in a single work area. The Collective Redundancy (Notification) Act requires employers to notify trade unions and the UWV of this.

Those who are made redundant due to reorganisation are usually entitled to unemployment benefit. And furthermore, it applies: When dismissed due to reorganisation or economic reasons, you are entitled to a transition payment. This payment is intended as financial compensation and to facilitate the transition to a new job. In 2026, the transition payment will be a maximum of €102,000 gross, unless your annual salary is higher than that amount.

Practical tips for when you are facing restructuring

• Never immediately sign a settlement agreement; always take the time to seek legal advice.
• Check that the mirroring principle has been correctly applied to your age group and job category.
• Ask your employer in writing which redeployment options have been explored.
• Use the statutory cooling-off period of 14 days if you have already signed.
• Keep all communication regarding the reorganisation: emails, letters and meeting minutes.
• When there's a collective redundancy, ask about the social plan and what arrangements have been made for you.
• Engage an employment lawyer in good time – the sooner, the more control you have over the process.

To learn more about your position during a reorganisation

The rules surrounding dismissals for business economic reasons are complex and depend heavily on your specific situation: your employment contract, your role, the collective labour agreement (CAO), and the way your employer has structured the procedure. Would you like a complete overview of everything involved in a reorganisation? Read on via Reorganisation and Redundancy in Eindhoven.

Help with dismissal by your employer in a reorganisation

At Arbeidsjurist Eindhoven, we know the local labour market in Eindhoven and the Brainport region. Whether you work for a large technology company or an SME employer in Brabant, we take a grounded approach to your situation and provide you with direct, practical insights. No legal jargon, but clear explanations of what lies ahead and what you can do. Contact us for a no-obligation initial consultation. You are not committed to anything.

Frequently asked questions

May my employer dismiss me just like that during a reorganisation?

No, that’s not allowed just like that. In the event of dismissal for operational reasons, your employer must apply for a dismissal permit from the UWV or offer a settlement agreement. The UWV assesses whether the operational reasons are sufficiently substantiated, whether the mirror principle has been correctly applied, and whether redeployment is truly not possible. Only when all these conditions have been met can your employer proceed with the dismissal.

Am I entitled to compensation if I am made redundant due to a reorganisation?

Yes. In the event of dismissal for business-economic reasons, you are generally entitled to the statutory transition payment. In 2026, this will amount to a maximum of €102,000 gross. The amount depends on your salary and your employment. Furthermore, in the event of a reorganisation, you are usually eligible for a WW benefit, provided that the settlement agreement or dismissal process has been conducted correctly.

The reflection principle is a legal term that refers to the legal theory that a court will reconsider previous decisions if the facts or circumstances of a case have changed significantly. This principle is important for you because it means that if you have a legal case before a court, and there are new developments or changes in your situation, you may be able to ask the court to review its previous decision. This could be beneficial if the court's original decision was not in your favour, or if you believe that the new circumstances warrant a different outcome.

The reflection principle is the legal method that determines which employees are considered first for dismissal. Employees are divided into age groups, and within each group, the principle is: the shortest tenure goes first. This prevents arbitrariness. If you believe the order is incorrect, that is grounds to challenge the dismissal with the UWV or the sub-district court.

Do I need to sign a settlement agreement during a reorganisation?

No, you are never obliged to sign a settlement agreement. In any case, do not sign it immediately under pressure from your employer. Have the agreement reviewed by an employment lawyer first. Have you already signed? Then you legally have a reflection period of 14 days to withdraw from your decision, without giving a reason. If this reflection period is not mentioned in the agreement, a period of 21 days even applies.

Before your employer can dismiss you during a reorganisation, they must follow a specific legal process. This typically involves several key steps: Assessing the necessity of dismissals: The employer must demonstrate that the reorganisation is genuinely necessary and that dismissals are unavoidable as a consequence. They should explore alternatives, such as redeployment within the company, before resorting to redundancy. Consultation: Your employer has a duty to consult with you (and in some cases, with trade unions or other employee representatives) about the proposed redundancies. This consultation should be meaningful and take place at an early stage. It should include discussions about: The reasons for the proposed redundancies. The implications of the redundancies. Ways of avoiding or reducing the number of redundancies. Methods of selecting employees for redundancy. How redundancy payments will be calculated. Fair selection criteria: If there are more employees than jobs available after the reorganisation, your employer must use fair and objective criteria to select who will be made redundant. These criteria should not be discriminatory and could include things like skills, qualifications, performance records, or length of service. Notice period: You are entitled to a statutory notice period, or a longer period if specified in your employment contract. Your employer must give you this notice. Redundancy pay: Depending on your length of service and earnings, you may be entitled to statutory redundancy pay. Right to appeal: In some cases, you may have the right to appeal a redundancy decision. If your employer fails to follow these procedures, the dismissal may be considered unfair. It is advisable to seek legal advice from a solicitor specialising in employment law or contact ACAS (Advisory, Conciliation and Arbitration Service) if you believe your employer has not followed the correct process.

Your employer must first seriously investigate whether a suitable alternative position is available for you within the organisation, possibly after retraining. This is called the duty to redeploy. Only if redeployment is demonstrably not possible may your employer apply for a dismissal permit from the UWV. If they do not do this, or do not do it sufficiently, the dismissal can be challenged.

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.