Employment Law

During a reorganisation leading to collective redundancies in Eindhoven, the works council plays a crucial role in representing the interests of the employees. Their responsibilities typically include: Seeking Information: The works council has the right to be informed promptly and comprehensively by the employer about the proposed reorganisation, its reasons, and its potential consequences, including the number of employees affected and the criteria for selection. Consultation and Advice: They must be consulted on significant business decisions that could affect employees. This includes discussing the reorganisation plan, potential alternatives to redundancies, and measures to mitigate the impact on employees. They are expected to offer advice and express their opinions. Consent and Veto Power: In some cases, particularly concerning dismissals, the works council may have a right of consent or even a veto. If the employer proceeds with a reorganisation or dismissals against the explicit advice or wishes of the works council, there can be legal consequences or a need for further negotiation. Negotiating Social Plans: The works council is instrumental in negotiating a "social plan" (sociaal plan) with the employer. This plan outlines the terms and conditions for employees who are made redundant, including severance pay, outplacement services, retraining opportunities, and support in finding new employment. Ensuring Fair Procedures: They monitor the process to ensure that redundancies are carried out fairly and in accordance with legal requirements and any agreed-upon procedures. This includes checking if selection criteria are applied justly. Employee Representation: The works council acts as the primary point of contact for employees during such difficult times, relaying concerns, answering questions, and advocating for their rights. Seeking Alternatives: They actively explore and propose alternatives to collective redundancies, such as redeployment within the company, reduced working hours, or early retirement packages. Monitoring Implementation: Once a reorganisation plan is approved, the works council monitors its implementation to ensure that the employer adheres to the agreed-upon terms and conditions, especially those related to employee support. In essence, the works council acts as a vital safeguard, ensuring that employee rights are protected, potential negative impacts are minimised, and the reorganisation process is conducted as responsibly and fairly as possible.

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Collectief ontslag Eindhoven wat doet de ondernemingsraad bij reorganisatie – arbeidsjurist Eindhoven
When it comes to collective redundancies in Eindhoven, the works council plays a crucial role. Read what the right of advice entails and what this means for you as an employee.

Is your company in Eindhoven or the Brainport region facing a reorganisation in which multiple positions are being made redundant? If so, the works council (OR) is one of the most important players in that process. Understanding precisely what the OR is permitted and required to do helps you, as an employee, to better assess whether your employer is complying with the rules.

What does the law say about the works council during a reorganisation

De bevoegdheden van de ondernemingsraad zijn vastgelegd in de Wet op de ondernemingsraden (WOR). Volgens artikel 25 van de WOR heeft de OR het recht om advies uit te brengen over ingrijpende organisatorische wijzigingen. Dit omvat bijvoorbeeld een aanzienlijke terugloop van de werkzaamheden, de sluiting van afdelingen, of een fundamentele verandering in de bevoegdheidsverdeling binnen de onderneming. Omdat een reorganisatie vrijwel altijd aan ten minste een van deze criteria voldoet, is het adviesrecht in de praktijk vrijwel altijd van toepassing wanneer er sprake is van collectief ontslag in Eindhoven of elders.

A works council is legally required when the undertaking normally employs more than 50 members of staff. If your employer is smaller, there may be a staff representation body (personeelsvertegenwoordiging – PVT) with more limited powers.

When must the employer consult the works council

The advice of the Official Receiver must be sought at a point when it can still genuinely make a difference. That may sound obvious, but in practice this regularly goes wrong. The law expressly states that the advice must be capable of having a material influence on the ultimate decision. An employer who only informs the Official Receiver after the reorganisation plans have already been fully worked out therefore fails to meet the statutory requirements.

There is also a practical and significant consequence: the UWV will not process a redundancy application on grounds of business-economic reasons if the Works Council has not been consulted in good time. The earlier the Works Council becomes involved in the plans, the greater the likelihood that the advice procedure will run smoothly and that your interests as an employee will be properly taken into account.

How does the request for advice work in practice?

The employer sends the OR a written request for advice. That request must contain at a minimum: the content of the proposed decision, the reasons behind it, and the measures the employer intends to take to limit the consequences for employees. At least one consultation meeting must then take place before the OR issues its advice. Only after that does the employer make a final decision and notify the OR of it in writing.

If the final decision deviates from the OR’s advice, the reorganisation may not be implemented for a period of one month. During that period, the OR may apply to the Enterprise Chamber (Ondernemingskamer).

What can the works council do if the employer disregards its advice

If the employer does not follow the OR’s advice, Article 26 of the WOR gives the OR the option of lodging an appeal with the Enterprise Chamber of the Amsterdam Court of Appeal. The grounds for appeal are that, having carefully weighed all the interests involved, the employer could not reasonably have reached its decision. The appeal must be lodged within one month of notification of the final decision.

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If the Enterprise Chamber upholds the appeal, it may order the employer to withdraw the decision in whole or in part, or impose a prohibition on taking any further steps to implement it. That is a powerful remedy, but one that requires careful preparation.

What does the OR procedure mean for you as an employee

As an employee, you have a direct interest in the works council fulfilling its role properly. A correctly completed consultation procedure increases the likelihood of a social plan containing good arrangements regarding redeployment, redundancy compensation, and support in transitioning from one job to another. Furthermore, a procedure that your employer has handled carelessly can have far-reaching consequences for the validity of redundancy applications.

Keep the following points in mind if you are faced with collective redundancy in Eindhoven:

  • Check whether the Works Council was informed of the reorganisation plans in good time and in full.
  • Find out whether the OR has already received a request for advice and what it says about measures for employees.
  • Ascertain whether the OR was involved in negotiations over a social plan.
  • Check whether your employer stated in the UWV redundancy application whether and when the Works Council was consulted.
  • If the OR's advice was negative or has been ignored, ascertain whether an appeal procedure is underway or has been considered.
  • Always have your position assessed by a specialist, independently of whatever the OR does.

Would you like to know more about how the entire process of reorganisation and redundancy on business-economic grounds works? Then take a look at the detailed information on the page about Reorganisation and redundancy on business-economic grounds in Eindhoven.

OR advice and your transition payment

A well-managed OR process also has an impact on the financial side of your redundancy. A social plan may contain arrangements for an additional payment on top of the statutory transition payment. In 2026, this amounts to a maximum of €102,000 gross, or one full gross annual salary if that is higher than this amount. Whether you are entitled to more than the statutory minimum depends in part on what the OR has managed to negotiate on behalf of employees.

Why Labour Lawyer Eindhoven

At Arbeidsjurist Eindhoven, we know the local labour market and understand how reorganisation processes work in practice, including at large Brabant-based employers. We'll look at your situation concretely: is the Works Council procedure in order, has the mirror principle been applied correctly, and is your redundancy pay complete and accurate? You don't have to face this alone. Contact us without obligation for an initial exploratory conversation about your position in the event of collective redundancy in Eindhoven.

Frequently asked questions

Is the employer required to seek advice from the works council during a reorganisation?

Yes, if the undertaking normally employs more than 50 members of staff, the employer is required under Article 25 of the Works Councils Act (WOR) to seek the OR's advice on major organisational decisions, such as a significant reduction in activities. Furthermore, the UWV will not process a redundancy application on grounds of business-economic reasons if the OR has not been consulted.

What can happen if the employer involves the works council too late or not at all?

If the employer disregards the right to advise or only informs the Works Council after a decision has already been made, the UWV may suspend the redundancy application until the advisory process has been concluded. Furthermore, the Works Council can lodge an appeal with the Enterprise Chamber, which can order the employer to withdraw the reorganisation decision, in whole or in part.

Can the employer deviate from the works council's advice?

The employer is not legally required to follow the OR's advice, but must provide written reasons for any deviation. If the final decision differs from the advice, a one-month waiting period applies before the reorganisation can be implemented. During that period, the OR may lodge an appeal with the Enterprise Chamber of the Amsterdam Court of Appeal under Article 26 of the Works Council Act (WOR).

What is the maximum transition compensation in the event of collective redundancy in 2026?

The statutory maximum transition payment in 2026 is €102,000 gross, or one full gross annual salary if that is higher than €102,000. A social plan negotiated by the OR may contain additional arrangements that increase your total compensation beyond the statutory minimum.

Does the works council have an influence on my personal redundancy compensation?

Not directly, but the OR can negotiate a social plan on behalf of all employees. This often contains arrangements regarding additional compensation, outplacement, and redeployment. As an employee, it is advisable to have your own legal position assessed by an employment law specialist, independently of whatever the OR has agreed.

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.

Roy, employment lawyer in Eindhoven
Written by
Roy
Employment lawyer at Employment Lawyer Eindhoven
Roy is an employment lawyer at Arbeidsjurist Eindhoven, part of Adviesgroep Eindhoven. He assists employees and employers with dismissal, settlement agreements and transition payments, always clear, personal and persistent. That is reflected in more than 85 five-star client reviews.
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