REORGANISATION

A higher severance payment in a reorganisation

Over ons | Arbeidsjurist Eindhoven
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severance payment in a reorganisation
Is higher severance pay possible in case of reorganisation? Read how this is possible here.

Imagine you have been working at the same company for 20 years. You know your colleagues, know exactly how everything works and suddenly you are told that the company is going to reorganise. Your position disappears and you get fired. You are offered a dismissal proposal (settlement agreement) with a transition allowance. But is that amount correct? And is it possible to get a higher severance payment?

The first offer is not always the best

Many employers adhere to the legal transitional allowance when reorganising. This is a fixed amount per year of employment. However, there is often room for negotiation, especially if the employer has an interest in handling the dismissal quickly and smoothly.

For instance, a social plan may include a higher severance payment than the legal transitional compensation. This is often done to benefit employees and avoid conflicts.

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Why would an employer pay a higher severance payment?

An employer often has an interest in a swift and smooth resolution. An employee who contests the dismissal, goes to court, or langdurig ziek can lead to additional costs and delays. That is why many employers are willing to pay more, for example when:

  • Errors have been made in the dismissal procedure;
  • Er fouten zijn gemaakt in de ontslagprocedure;
  • You had special employment benefits, such as a company car or a bonus scheme;
  • The employer wants to avoid reputational damage by arranging a proper settlement.

Negotiating severance pay makes a difference

We advise against accepting the first offer straight away. Employers often anticipate negotiations and in many cases have room to put forward a better proposal. A well-handled negotiation can make a difference of thousands of euros. Think of additional monthly salaries, a longer notice period, or compensation for outplacement.

A higher payment may be possible by highlighting your years of service, your position on the labour market, and any special employment benefits. By seeking advice from a Employment lawyer, you increase the likelihood of receiving a fair and appropriate payment.

Heb jij een settlement agreement and would like to know whether you are entitled to a higher severance payment? Please do not hesitate get in touch contact us. We are happy to help you get the best out of your situation.

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