Is outplacement required by law?

Outplacement is not required by law in the Netherlands, but can result from good employment, a collective labor agreement, a settlement agreement or a reorganization.

In practice, it is usually the employer who offers outplacement to support employees in the event of dismissal. Although there is no direct legal obligation, outplacement is fiscally stimulated through the transition payment and, in the event of collective dismissal, the UWV expects employers to actively help employees find new work.

Outplacement and Dutch law

In the Netherlands, there is no law that explicitly states that an employer must offer outplacement. However, legal and practical obligations can arise:

• Good employment practices (Civil Code, art. 7:611) can make outplacement mandatory in reasonable situations.
• Collective agreement or settlement agreement may include a binding agreement about outplacement.
• Reorganization can lead to an indirect obligation, because the UWV expects the employer to make efforts to relocate.

Transition payment and outplacement

Since 2020, every employee has the right to a transition payment, even if the employment period only lasted one day. Is the transition payment used for outplacement or retraining, then there is a tax exemption: no payroll tax has to be paid on this part.

This makes outplacement attractive for both employee and employer. The process is fiscally stimulated and reduces the net costs.

Good employment and outplacement

Employers have a duty of care towards their employees. Outplacement can be done under good employment practices fall, for example when:

• a company moves and employees lose their jobs as a result,
• a reorganization leads to dismissal for business reasons,
• employees are no longer employable due to circumstances through no fault of their own.

In such cases, it is a sign of good employment — and sometimes a legal necessity — to offer an outplacement process.

Outplacement in case of reorganization

Bee collective dismissal the Collective Dismissal Notification Act (WMCO) applies. Employers must then submit a reorganization plan to the UWV. Employers are expected to actively support employees towards new work. Outplacement is often the most appropriate tool in this regard.

Good employment

Not only employers have obligations. Employees must also participate. In the event of illness or reintegration, they can be expected to actively participate in guidance, for example within the framework of the Gatekeeper Improvement Act.

Outplacement in Belgium: mandatory

In contrast to the Netherlands, outplacement in Belgium is much more strictly regulated.

• Employers are obliged to offer outplacement upon dismissal under certain conditions.
• Employees over the age of 45 may be required to follow an outplacement process.

Summary — is outplacement mandatory?

• In the Netherlands: not required by law, but may result from a collective agreement, settlement agreement or reorganization.
• Through the transition payment, outplacement can be used in a fiscally advantageous way.
• In practice, good employment can mean an obligation.
• In Belgium: outplacement mandatory in the event of dismissal under certain conditions.

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