Redundancy and a social plan, what does this mean for you in Eindhoven?

Is your company facing a restructuring and are you hearing about a social plan for the first time? That immediately raises questions: what does it actually contain, are you automatically bound by it, and does the plan protect you sufficiently? In this article we explain how a social plan works, what it does and does not offer you, and when it is wise to seek legal advice.

What is a social plan in a reorganisation?

A social plan is a package of agreements designed to limit the consequences of a restructuring for employees as much as possible. Think of agreements on redeployment, outplacement, training, and financial compensation. The plan is drawn up between the employer and the trade unions or the works council (OR).

Important to know: a social plan is not required by law. The term 'social plan' does not officially exist in Dutch legislation and regulations. However, collective agreement provisions or the WMCO (in the case of collective dismissal of twenty or more employees) may oblige an employer to consult with the trade unions. In practice, many employers nonetheless draw up a plan, because it provides clarity and equal treatment for all employees involved.

What does a social plan typically contain?

The content varies per organisation, but most plans cover at least the following matters:

• Herplaatsing: what steps will the employer take to offer you another suitable position within or outside the organisation?
• Ontslagvolgorde: how is it determined who is declared redundant first (the proportional selection principle)?
• Financiële vergoeding: will you receive a leaving bonus on top of, or instead of, the statutory transition payment?
• Outplacement en scholing: what support does the employer offer towards finding other work?
• Salary supplement or a mobility period: for how long will your salary be (partially) continued while you look for another job?

The more generous the social plan, the better the leaving arrangement generally is. However, bear in mind that no two plans are alike, and the amount of any severance payment is by no means always equal to the statutory transition payment.

Are you bound by the social plan?

Whether you are bound by a social plan depends on how the plan was established. If it was concluded with the trade unions and the agreements have been declared universally binding, it applies to all employees, even if you are not a union member. If the plan was agreed with the works council or unilaterally established by the employer, different rules apply and your individual consent may sometimes be required.

If you are not bound by the social plan and the plan offers a lower payment than the statutory transition payment, you may in some situations still be entitled to that statutory transition payment. This is a matter of legal tailoring: have your situation assessed by an employment lawyer before you agree to anything.

Social plan via a settlement agreement

In many reorganisations, the social plan is implemented in practice by means of a settlement agreement (VSO). That may sound straightforward, but there is a risk. A VSO may deviate from what the social plan promises, or may formulate certain elements incompletely. Moreover, a VSO almost always contains a full and final settlement clause: once you have signed, you can no longer pursue any further claims. Always check carefully what you are signing.

The transition payment and the social plan

In the event of compulsory dismissal, you are in principle always entitled to a transition payment, even if a social plan applies. The statutory transition payment amounts to one third of a gross monthly salary for each full year worked, with a statutory maximum of €102,000 gross in 2026. If your annual income exceeds €102,000, your gross annual salary serves as the maximum.

Some collective labour agreements provide for an alternative arrangement in place of the statutory transition payment, but since 1 January 2020 this is only permitted in the case of dismissal on economic grounds. That arrangement no longer needs to be equivalent to the statutory payment, but it must be aimed at preventing or shortening unemployment, contain a reasonable financial payment, or a combination of both.

Practical tips if your employer is restructuring

• Request a copy of the full social plan and the applicable collective labour agreement straight away.
• Check whether your employment, type of contract or job category falls within the scope of the plan.
• Calculate your own statutory transition payment and compare it with the payment being offered.
• Never sign a settlement agreement immediately; you generally have a period for reflection and in any event the right to seek advice.
• Be aware of the fourteen-day cooling-off period after signing a VSO; within that period you may withdraw your signature without giving any reason.
• Put any questions to HR in writing if provisions in the social plan are unclear.
• Engage an employment lawyer in good time, particularly if you have doubts about whether the package being offered is correct.

When is legal advice needed in a restructuring?

A social plan may look good on paper, but translating it to your individual situation is not always straightforward. Consider factors such as a long period of service, an atypical contract form, a higher salary or an ongoing incapacity for work. In such cases there are additional points of attention that are easily overlooked without legal knowledge. For more information about your rights upon dismissal on economic grounds, please also read the overview at Reorganisation and Redundancy in Eindhoven.

Why Employment Lawyer Eindhoven

At Arbeidsjurist Eindhoven we help employees in the Eindhoven and Brabant region to gain a clear understanding of their position during a reorganisation. We look concretely at your social plan, your employment contract and the payment being offered, so that you know whether signing is the right course of action or whether there is more to be obtained. Contact us without obligation for an initial exploratory conversation. That way you will know exactly where you stand.

Frequently asked questions

Is an employer required to draw up a social plan in the event of a reorganisation?

No, a social plan is not required by law. The term 'social plan' does not exist in legislation. However, a collective labour agreement (cao) may oblige an employer to consult with trade unions in the event of major reorganisations. In addition, where twenty or more employees face collective dismissal, the consultation obligation under the WMCO applies. In practice, many employers nevertheless draw up a social plan, because it provides clarity and equal treatment for all affected employees.

Am I automatically bound by my employer's social plan as an employee?

That depends on how the plan came about. If it was concluded with the trade unions and the arrangements have been declared universally binding, it applies to all employees, including non-union members. If the plan was established solely with the works council (OR) or unilaterally, your individual consent may sometimes be required. Have your situation assessed by an employment lawyer if you are in any doubt.

Am I still entitled to the statutory transition payment if a social plan applies?

That depends on the content of the social plan and whether you are bound by it. The statutory transition payment in 2026 amounts to one third of a gross monthly salary for each full year worked, up to a maximum of €102,000 gross. If the social plan offers a lower payment and you are not bound by the plan, you may in certain circumstances still be able to claim the statutory transition payment. Consult an employment lawyer regarding your specific situation.

Am I allowed to negotiate the payment when I receive a settlement agreement in a reorganisation?

Yes, negotiating the content of a settlement agreement (VSO) is possible even in a reorganisation involving a social plan. A VSO may deviate from the social plan or reflect certain elements incompletely. Never sign immediately and make use of your statutory cooling-off period of fourteen days after signing. An employment lawyer can review the VSO for you and assist with the negotiation.

What can I do if the social plan contains no outplacement or training allowance?

If the social plan contains no provision, or only limited provision, for outplacement or training, that does not mean there is nothing you can do. Depending on the content of your cao, your employment contract and the circumstances of the dismissal, additional rights may exist. Discuss your situation with an employment lawyer to assess what options are available.

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.