Your employer is being taken over – and now you are wondering what that means for your job and your Redundancy Payment. The good news: the law provides you as an employee with solid protection during a business takeover. The less straightforward news: whether you are immediately entitled to a payment depends on the legal structure of the takeover.
Transfer of undertaking and what it means for you
Not every business takeover works in the same way. The law draws an important distinction. If there is a so-called Transfer of undertaking within the meaning of Section 7:662 of the Dutch Civil Code, your employment contract automatically transfers to the new owner by operation of law. You do not need to sign a new contract, and your terms and conditions of employment remain the same in principle.
A transfer of undertaking occurs when an economic entity is transferred by means of an agreement, merger, or division, and that entity retains its identity. Think of taking over the business premises, the trade name, the clients, and a substantial part of the workforce. If that is the case, the new owner automatically steps into your employer’s shoes.
In such a transfer, your employment does not end, and therefore you do not receive a redundancy payment. Your employment contract simply continues with the new employer.
When are you entitled to a redundancy payment?
Precisely because a takeover must not in itself constitute grounds for dismissal, the law is clear: the takeover may never be the sole reason for your dismissal. If the new employer dismisses you nonetheless, there must be an independent ground for dismissal, such as economic circumstances or underperformance. Dismissal on such grounds does entitle you to a redundancy payment, and the years served with your previous employer count towards the calculation.
If you have worked for the original employer for ten years and the acquiring party dismisses you after the takeover, all ten years of service count. The new employer cannot reset the service count from the date of the takeover. This is an essential protective mechanism in the law.
In 2026, the maximum statutory redundancy payment is €102,000 gross, or one full gross annual salary if that exceeds €102,000. The payment accrues at one third of a month’s salary per year worked.
Cooperating with or refusing the transfer
You are not obligated to transfer to the new employer. However, if you refuse, you must do so expressly and unambiguously. In that case, your employment will end by operation of law at the moment of the transfer – and in principle you will not be entitled to a redundancy payment.
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Plan a conversationThere is, however, an important exception. If the takeover leads to a material deterioration of your terms and conditions of employment, a refusal is treated as a termination at the employer’s initiative. Think of a change of location resulting in an unreasonably long commute, or significantly worse terms and conditions. In that case, you may still be entitled to a redundancy payment — and possibly to a fair compensation payment as well.
Successive employment as additional protection
succession of employment successive employment. In that situation too, the years of service with the previous employer count towards the amount of any future redundancy payment. This protects you against situations where the structure of the takeover has been arranged in such a way that your accrued rights would otherwise be lost.
Practical tips if your company is being taken over
- Keep all documents relating to your employment: contracts, payslips, and any supplementary agreements.
- Check that your original start date is correctly recorded in the new employer’s administration.
- Read any new offer from the acquiring party carefully: do not agree too quickly to changes in your terms and conditions of employment.
- Keep all records of communications relating to the takeover. Emails, letters, and notes from meetings could be useful later.
- Are you unsure whether your terms and conditions of employment have materially deteriorated? Have this assessed by an employment law specialist before making a decision.
- Is dismissal threatened after the takeover? Check that the correct years of service have been included in the calculation of your redundancy pay.
Why Labour Lawyer Eindhoven
A business takeover raises legal questions that you cannot simply answer on your own. Whether you want to know if your years of service are being counted correctly, or you have concerns about a deterioration in your terms and conditions: at Arbeidsjurist Eindhoven, we know how employment law works in practice. We are well acquainted with these kinds of issues in the Eindhoven and Brabant labour market and are happy to think things through with you — personally, concretely, and without any fuss.
Get in touch with no obligation. We will look at your situation together and work out the best course of action.
Frequently asked questions
Will I receive a redundancy payment if my employer sells the business?
Not automatically. In the event of a transfer of undertakings, your employment contract transfers to the new employer and does not cease. You are only entitled to a redundancy payment if the new employer dismisses you after the takeover, with your years of service with the previous employer counting towards the calculation.
Do my previous years of service count towards the redundancy payment calculation after a takeover?
Yes. In a transfer of undertaking, the new employer takes over all rights and responsibilities under your employment contract. This means that your years of service with the previous employer count in full if the new employer later dismisses you. The clock does not restart from the date of the takeover.
What if I do not wish to transfer to the new employer?
You may refuse a transfer, but in that case your employment will, in principle, end by operation of law at the time of the transfer and you will not be entitled to a redundancy payment. However, if the takeover leads to a material deterioration of your terms and conditions of employment, your refusal may be regarded as a termination at the employer's initiative. In that case, you may still be entitled to a redundancy payment.
Can my new employer change my terms and conditions of employment after a takeover?
Not simply as a matter of course. In a transfer of undertaking, your existing terms and conditions of employment transfer to the new employer. The employer may not unilaterally impose changes that are to your detriment. If you are uncertain whether a proposed change is lawful, have it assessed by an employment law specialist.
Does the protection under a transfer of undertaking also apply if only part of the business is taken over?
Yes. The law also protects employees in the transfer of a part or branch of an undertaking, provided that part can be regarded as an independent economic entity that retains its identity after the transfer. Whether that is the case depends on the facts and circumstances of the specific situation.
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.
