reorganisation: everything you need to know

Social plan

Depending on the number of employees working for your employer, your employer must seek advice from the works council regarding the proposed reorganisation. It may also be necessary for your employer to inform the trade union. This is the case with a collective redundancy (more than 20 employees in three months). Additionally, the collective labour agreement for contract catering stipulates that an employer must meet with the relevant trade unions if they wish to reorganise. The collective labour agreement for day recreation contains a similar provision if the reorganisation affects 10 or more employees.

When we become involved in a reorganisation, we investigate whether a reorganisation is truly necessary. We will always try to prevent you or your colleagues from being made redundant. If redundancies are unavoidable, we do everything possible to mitigate the impact on everyone. We do this by making agreements in a social plan. A social plan outlines the consequences of the reorganisation for the employees. This applies to employees who remain in employment, as well as those who are made redundant. After negotiations, we present a social plan to our members for approval. Only after the social plan is approved will we sign the plan.

Redundancy

In a reorganisation, your employer's company is reorganised to prevent bankruptcy. As a result of this reorganisation, positions or jobs are eliminated. Employees who were working in these positions or jobs before the reorganisation are declared redundant. This is not done arbitrarily but based on the 'reflection principle'. If you are declared redundant, it is expected that you will be redeployed or made redundant.

Reflection principle

The reflection principle ensures that the age distribution of employees at the employer remains as consistent as possible. The employer cannot dismiss employees at their own discretion. The reflection principle means that temporary agency contracts, on-call or fixed-term contracts are terminated first. The remaining employees with interchangeable roles are categorised into age groups (25-35, 35-45, 45-55, 55+). Within these age groups, employees are dismissed according to the last-in-first-out principle, ensuring the age distribution remains as balanced as possible.

Reassignment

A reorganisation affects everyone working at a company. In some cases, you may be offered a different role internally or externally. This could be the same role at a different location or a different role altogether. Your employer might also assist you in finding a job at another company. This is known as reassignment. If there is a social plan, it often includes agreements about reassignment. For example, about other work that may be offered to you or adjustments to your salary.

Dismissal

During a reorganisation, multiple employees are often dismissed simultaneously. Whether you are dismissed depends on the reflection principle. If you are declared redundant based on the reflection principle and there are no reassignment opportunities, you will be proposed for dismissal. The dismissal procedure generally goes through the UWV. A social plan may stipulate that a dismissal committee, rather than the UWV, handles the dismissal application. A social plan may also stipulate that before a dismissal procedure, you are given the opportunity to agree to your dismissal through a settlement agreement. 

Settlement agreement

In a settlement agreement, you and your employer mutually agree to terminate your employment. If there is a social plan, the conditions under which this occurs are largely set out in that social plan. You cannot be forced to cooperate with a settlement agreement. Whether it is wise to cooperate with a settlement agreement depends on the circumstances and the specific offer your employer makes. Always ask your employer for a written proposal and a reasonable period to consider it so that you have the opportunity to seek legal advice. A termination proposal must meet certain conditions to secure your right to unemployment benefits. For example, it is important that your employer initiated the dismissal and that the correct notice period is observed. Read more about the settlement agreement.

Dismissal procedure

Are you redundant and have you refused the settlement agreement? Then your employer will apply for a dismissal permit from the UWV on economic grounds. Your employer must demonstrate that there is a structural decline in jobs, that the correct dismissal order has been followed, and that there are no possibilities for reassignment. You will have the opportunity to present your defence, and the UWV will make a decision. If your employer is granted permission to terminate your employment, they must do so within four weeks, observing the applicable notice period. If your employer's request is denied, they can repeat the request at the subdistrict court. 

Reorganisation during illness and pregnancy

During the first two years of your illness, there is a prohibition on termination. This prohibition also applies during your pregnancy, maternity leave, and the first six weeks after you return to work. A termination prohibition generally prevents the granting of a request to dissolve the employment contract. This means that, in principle, as an incapacitated or pregnant employee, you are exempt from a reorganisation. 'In principle' because there are some exceptions.  The termination prohibition does not apply if you agree to the dismissal, in the event of bankruptcy or business closure (the termination prohibition during maternity leave does apply in this case), if you became ill only after the UWV received the dismissal application, if you do not cooperate with your reintegration without good reason, or if you have been ill for more than two years. If you are unsure whether the social plan applies to you, please contact one of our legal experts.