Redundancy Pay During a Restructuring in Eindhoven: Your Rights

Transition payment in the event of a reorganisation in Eindhoven

If you are affected by a reorganisation, you are in most cases entitled as an employee to a transition payment. This also applies if you agree to a settlement agreement. However, reorganisations are subject to specific rules that determine whether your dismissal is legally sound and whether you may be able to claim more than the bare statutory payment.

Reorganisation and dismissal on economic grounds

A reorganisation is legally classified as dismissal on business-economic grounds. This includes a decline in turnover, a structural reduction in headcount, or an organisational restructuring. If your employer wishes to terminate your employment contract on this basis, they generally require the UWV's permission. Without that dismissal permit, the employment contract cannot be lawfully terminated.

The UWV then assesses whether the business-economic necessity has been sufficiently substantiated, whether the mirror-image principle has been applied correctly, and whether redeployment has been genuinely explored. Only once all these conditions have been met will the UWV give the green light.

The mirror-image principle determines who is declared redundant

It is not arbitrary who leaves the organisation: the law prescribes the mirror-image principle. For each interchangeable job group, the age composition of the workforce is examined. Within each age category, the employee with the shortest period of service is the first to be considered for dismissal. In this way, the age distribution within the company is kept as consistent as possible after the reorganisation.

If the mirror-image principle is applied incorrectly, that can be grounds for contesting the dismissal. Incorrectly ranking job roles or disregarding colleagues on temporary contracts are common mistakes that can give you as an employee a stronger negotiating position.

Amount of the transition payment in 2026

The transition payment accrues from your very first working day. The calculation is straightforward: for each complete year of service you receive one third of your gross monthly salary. Remaining months and days are counted on a pro-rata basis. In 2026 a statutory maximum of €102,000 gross applies. If you earn more than €102,000 per year, your maximum transition payment equals one gross annual salary.

Would you like to know exactly where you stand? Read more about the calculation and all the conditions on the page about transition payment.

Social plan and additional payments

In larger reorganisations there is sometimes a social plan, drawn up by the employer together with trade unions or the works council. Such a plan may contain additional arrangements, such as a higher payment, outplacement support or a longer notice period. That is good news, but be aware: a social plan does not automatically replace your statutory right to a transition payment. Always check whether the arrangement being offered is at least equivalent.

Under a collective labour agreement (cao), a replacement arrangement may in certain circumstances have been agreed in place of the transition payment, but it must then be aimed at preventing or shortening unemployment or must include a reasonable financial compensation.

Your defence during the UWV procedure

As soon as your employer submits an application for dismissal to the UWV, you will receive a copy. You then have two weeks to submit a written defence. That period is short but crucial: a strong defence can result in the UWV rejecting the application or your employer being willing to renegotiate the terms.

Practical points to watch out for during a reorganisation:

• Check whether your position has been correctly classified within the interchangeable job group.
• Verify whether the mirror-image principle has been applied step by step in the correct manner.
• Request access to information about your employer's redeployment efforts.
• Consider whether a social plan applies and what this means for you.
• Submit a timely and well-substantiated defence if you disagree with the dismissal application.
• Have any settlement agreement checked before you sign it.

Challenging dismissal after the UWV procedure

Has the UWV granted permission but are you unsure whether everything has been carried out lawfully? You can still challenge the dismissal after the fact at the subdistrict court. You have two months from the date on which the dismissal took effect to do so. The court can reinstate the employment contract or award equitable compensation if it becomes clear that your employer acted with serious culpability — for example, by deliberately circumventing the mirror-image principle.

Why Employment Lawyer Eindhoven

A reorganisation brings a great deal of uncertainty, especially if you work in Eindhoven or the Brabant region and are not quite sure where you stand. At Arbeidsjurist Eindhoven we know the local labour market and we are by your side to give you a clear picture of your position. Whether it concerns reviewing a dismissal application, submitting a defence to the UWV, or negotiating a better payment: we help you in a practical way and without legal jargon.

Contact us without obligation and find out what we can do for you.

Frequently asked questions

Am I always entitled to a transition payment in the event of a reorganisation?

In most cases, yes. If your employment contract is terminated at your employer's initiative on business-economic grounds, you are entitled to a transition payment. There are exceptions — for example, if the termination is attributable to serious culpable conduct on your part as an employee. Consult an employment lawyer to assess your specific situation.

What is the maximum transition payment in 2026?

In 2026 the statutory maximum transition payment is €102,000 gross. If you earn more than €102,000 per year, your gross annual salary serves as the maximum. The accrual rate is one third of a monthly salary per full year of service, including remaining months and days on a pro-rata basis.

What is the mirror-image principle and what does it mean for me?

The mirror-image principle determines the order of dismissal in a reorganisation. For each interchangeable job category, the age composition of the workforce is taken into account. Within each age category, the employee with the shortest length of service is the first to be dismissed. If this principle is applied incorrectly, that can constitute grounds for challenging your dismissal.

How much time do I have to submit a defence in the UWV procedure?

Once you receive a copy of the dismissal application, you have two weeks to submit a written defence to the UWV. That deadline is short, so engage an employment lawyer as quickly as possible to ensure your defence is properly substantiated.

Can I receive a higher payment than the statutory transition payment?

Yes, that is possible. Through negotiations, a social plan, or a settlement agreement you can make additional arrangements regarding a higher severance payment, outplacement, or other provisions. The statutory transition payment is the minimum; whatever your employer offers on top of that is open to negotiation.

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.