Is your employer threatening to make you redundant on business economic grounds? If so, there is a good chance they will need to apply for a dismissal permit from the UWV (Employee Insurance Agency). This procedure follows strict rules: your employer must substantiate their plans thoroughly, and you have the right to submit a defence. Below you will find a precise explanation of how the process works and what you can do to protect your position.
A UWV dismissal permit is required when an employer wants to dismiss an employee for reasons related to the employee's suitability or the operational requirements of the business.
Not every reason for dismissal automatically leads to a UWV procedure. The UWV dismissal procedure is specifically intended for redundancy on business economic grounds or long-term incapacity for work. Business economic reasons include a poor financial position of the company, a reduction in work, roles becoming redundant due to technological changes, a reorganisation, business closure, or the outsourcing of activities. Critically, the situation must be structural: the circumstances must not be expected to disappear within 26 weeks. Only then can your employer approach the UWV for permission to dismiss you.
Your employer must demonstrate
Simply citing a business economic reason is not sufficient. Your employer must substantiate the reason concretely with supporting evidence, such as financial figures from the accounts. In addition, the UWV tests a number of further conditions before granting permission:
- The business economic reason has been sufficiently demonstrated and the dismissal is genuinely necessary to keep the company viable.
- The correct order of dismissal has been followed, generally through the proportional representation principle (afspiegelingsbeginsel): employees are divided into age groups, and within each group the employee with the shortest length of service is the first to be considered for redundancy.
- Your employer has first investigated whether redeployment to another suitable role is possible, including after any retraining.
- For permanent contracts, the UWV also considers whether temporary staff and agency workers have already been, or will be, made redundant before permanent employees are.
If twenty or more employees are made redundant within a three-month period, additional rules apply regarding the notification of collective redundancy, in which trade unions and the works council also play a role.
Here's how the UWV procedure works, step by step: 1. Reporting the Job Loss (or Threat of Job Loss): * If your employment is ending, or if you foresee it ending, you or your employer must report this to the UWV. This can usually be done online via the UWV portal. * Timing: It's crucial to do this promptly. There are specific deadlines, often meaning you need to report the situation at least two months before your contract ends or before you're definitively made redundant. If you're dismissed for urgent cause, you should report it immediately. 2. Assessment by the UWV: * Once the UWV receives the report, they will assess the situation. They will check if the dismissal is justified and if there are any grounds for objection. * They will look at the reasons for termination, such as company restructuring, long-term illness of the employee, or if the employee themselves has requested dismissal. 3. Requesting an Unemployment Benefit (WW-uitkering): * After reporting the job loss, you (the employee) can apply for unemployment benefits (WW-uitkering). This application is also typically done online via the UWV portal. * Required Information: You'll need to provide personal details, information about your previous employment, and the reason for your departure. 4. Waiting Period (Wachttijd): * There's usually a waiting period before your unemployment benefits start. This period varies depending on the reason for your dismissal. For example, if you resigned yourself, the waiting period is usually longer than if you were dismissed for economic reasons. 5. UWV Decision on Benefit Claim: * The UWV will review your application for unemployment benefits. They will consider all the information provided, including the employer's report and your application. * They will determine if you are eligible for benefits and the amount and duration you will receive. This decision will be communicated to you in writing. 6. Active Job Seeking (Arbeidsplicht): * Once you are receiving unemployment benefits, you have an obligation to actively seek new employment. This is known as the 'arbeidsplicht'. * Reporting Your Job Search: You will need to register with the UWV and prove that you are actively looking for work. This usually involves keeping a record of your job applications, interviews, and other job-seeking activities. You'll need to report your job-seeking efforts to the UWV regularly, often monthly, via their online portal. 7. UWV Support and Guidance: * The UWV offers support to help you find a new job. This can include coaching, advice on your CV and cover letters, interview training, and sometimes even retraining or courses to improve your employability. * They may also refer you to specific job vacancies. 8. Receiving Benefits: * As long as you meet the conditions (actively seeking work, reporting regularly, not refusing suitable job offers), you will receive your unemployment benefits. The amount and duration are determined by your previous salary and the length of time you have worked. 9. End of Benefits: * Your unemployment benefits will end when you find a new job, when the maximum benefit period is reached, or if you fail to meet the obligations of the 'arbeidsplicht' (e.g., not actively seeking work, refusing suitable employment). It's important to note that procedures can vary slightly depending on specific circumstances, and it's always best to refer to the official UWV website or contact them directly for the most accurate and up-to-date information.
The application for a dismissal permit comprises three forms (Parts A, B, and C), which your employer will complete and upload, along with the necessary supporting documents, via the UWV Employer Portal. Part A contains the employer’s details, Part B the details of the employees concerned, and Part C the justification for the dismissal. The UWV will then assess whether the application is complete and substantively adequate.
Once the application is taken into substantive consideration, the UWV will send you, as the employee, a copy. You then have fourteen days to submit a written defence. This deadline is strictly observed, so do not delay. After your response, the UWV may conduct a second round of hearing both parties. In practice, the procedure takes a minimum of four weeks from the point of substantive consideration, but it regularly extends to eight to ten weeks.
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Plan a conversationPractical tips if you are expecting a UWV procedure
- Please forward all documents without delay. As soon as you receive the copy of the dismissal application, keep everything carefully. The fourteen days to submit a defence pass quickly.
- Check the principle of proportional representation. Critically examine whether your employer has correctly determined the order of dismissal. An error here can cause the dismissal permit to fail.
- Are there any redeployment possibilities?. Has your employer genuinely explored all options for an alternative role? If not, this is a strong point in your defence.
- Be mindful of dismissal prohibitions. Are you ill, pregnant, or do you have another protected status? In such cases, the UWV is not permitted to grant permission.
- Sign nothing without legal advice. If, alongside the UWV procedure, you are also presented with a settlement agreement, always have it checked before signing anything.
- Note the date of dismissal. If the permit is granted and your employer dismisses you, you have two months from the date of dismissal to go to the cantonal court if you disagree with the decision.
What happens after the UWV reaches a decision
The UWV sends its decision to you and your employer simultaneously. If the UWV grants the dismissal permit, your employer is entitled to terminate your employment contract. The permit is only valid for four weeks: if your employer does not use it within that period, the permission lapses and they must start the process again. After notice has been given, you are entitled to the statutory transition payment and may be eligible for unemployment benefit (WW).
Do you disagree with the permit that has been granted? You can no longer lodge an objection with the UWV itself. However, within two months of the date of dismissal, you can submit a petition to the cantonal court. The court will reassess the case and can reinstate your employment contract or award fair compensation. If the UWV refuses the permit, your employment contract remains in force. Your employer may in that case apply to the cantonal court for dissolution of the employment contract; the court will then assess the matter entirely afresh.
If you would like to know more about the broader context of dismissal due to business economic circumstances, you can read all about it at Reorganisation and business economic dismissal in Eindhoven.
Why Labour Lawyer Eindhoven
A UWV procedure moves quickly and its deadlines are firm. Whether you want to know whether your employer’s defence holds up, or you simply want to verify that the procedure is being conducted correctly: at Arbeidsjurist Eindhoven we are ready to provide practical and personal advice. We know the local labour market in Eindhoven and the Brabant region and will help you swiftly and clearly. Contact us without obligation for an initial conversation about your situation.
Frequently asked questions
Your employer must apply for a dismissal permit from the UWV when they wish to dismiss you on the grounds of long-term illness or redundancy.
Your employer is required to apply for a dismissal permit from the UWV if they wish to make you redundant on business economic grounds or following two years of sickness absence. For other grounds of dismissal, such as underperformance or an irreparably damaged working relationship, the procedure goes through the cantonal court.
How long does a UWV procedure for business economic dismissal take?
From the moment the UWV starts substantive consideration of the application, the procedure takes a minimum of four weeks. In practice, processing times of eight to ten weeks are not uncommon, particularly if the UWV requests additional information or a second hearing of both parties takes place.
If the UWV grants the dismissal permit but you disagree with the decision, you can lodge an objection with the UWV. If you are still not satisfied with the objection decision, you can then appeal to the administrative court.
You can no longer lodge an objection with the UWV itself. However, within two months of the date on which your employment contract ended, you can submit a petition to the cantonal court. The court reassesses the case and can reinstate your contract or award fair compensation.
If an employer dismisses an employee due to poor performance, the UWV permit will be subject to a re-employment condition. This means that if the employer wants to re-employ the employee within a specified period (usually six months) after their dismissal, they generally must obtain permission from the UWV first. This condition aims to prevent employers from dismissing employees only to rehire them immediately on less favourable terms.
When the UWV grants a dismissal permit on business economic grounds, the re-employment obligation applies. This means your employer is obliged to approach you first, within 26 weeks of the date of dismissal, if a vacancy arises for the same or comparable work.
Are you entitled to a transition payment if your employer dismisses you via the UWV?
Yes. If the UWV grants the dismissal permit and your employer subsequently dismisses you, you are entitled to the statutory transition payment. The amount depends on your gross monthly salary and the length of your employment. You may also be eligible for unemployment benefit (WW).
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