A reorganisation in which your position is eliminated means that your job within the organisation ceases to exist as a result of an internal restructuring. This can have major consequences for your career, your rights and your obligations. In this article you can read what happens when your position is eliminated, which steps are important and how outplacement support can help.
What does it mean when your position is eliminated in a reorganisation?
When an employer proceeds with a reorganisation (reorganisatie), positions may be cut or merged. If your position is eliminated, this means that your duties disappear structurally. The decision is often the result of business-economic reasons, automation or a changing market. You are officially declared redundant (boventallig); this has a direct impact on your employment.
The process surrounding the disappearance of a position is legally bound by rules. Your employer must involve UWV (the Dutch employee insurance agency) or the subdistrict court for dismissal (ontslag), unless you agree to a settlement agreement (vaststellingsovereenkomst, VSO). The Work and Security Act (Wet werk en zekerheid, Wwz) sets out how these procedures must be conducted and what rights you have, such as the right to a transition payment (transitievergoeding).
A social plan (sociaal plan) is often drawn up, setting out arrangements on guidance, finances and redeployment. It is important to study this document carefully and to fully understand what you are entitled to. If you are considering another position within the company, a redeployment obligation often applies.
Legal aspects and UWV procedures when a position is eliminated
If your position is eliminated in a reorganisation, your employer must follow an objective and transparent procedure. The dismissal application is usually submitted through UWV. UWV assesses whether the employer sufficiently demonstrates that the position actually disappears structurally and that redeployment within the company is not possible.
An important criterion is the reflection principle (afspiegelingsbeginsel). This means that employees in comparable positions are ranked on the basis of age and years of service. The person with the shortest period of service within an age category is the first to be considered for dismissal. You can read more about Dismissal through reorganisation: what does it mean and what next? and which rules apply here.
In addition to the formal procedures, it is crucial to be alert to your rights, for example when objecting to dismissal or when you have a temporary contract. When in doubt, always consult a legal adviser or HR specialist.
Transition payment and financial consequences
After your position is eliminated in a reorganisation, you are usually entitled to a transition payment (transitievergoeding). This payment is intended as financial support in finding new work. The amount is calculated on the basis of your years of service and salary. Please note: this payment can have tax consequences. More information about the transition payment and tax on the transition payment is essential to avoid surprises.
The social plan may also contain additional arrangements, such as an extra severance payment or agreements on the use of outplacement. The final settlement usually includes the payment of any outstanding holiday days and other entitlements. See also the explanation of the final settlement (eindafrekening) on dismissal.
Redeployment and the employer’s best-efforts obligation
Employers are legally obliged to investigate, before dismissal, whether redeployment to another suitable position within the company is possible. This is known as the redeployment obligation. Consideration must be given to any vacant positions and whether retraining is among the possibilities.
In practice, a period of several months is often applied during which redeployment takes place. Your employer must actively support you and think along with you. If redeployment is unsuccessful, the employment is usually terminated. A good example is where an administrative employee whose position is eliminated is assessed to see whether he or she can move to a comparable position after additional training.
If you have a temporary contract, different rules apply. More information about an annual contract and the notice period may be relevant here.
The role of outplacement when your position is eliminated
Outplacement is guidance towards a new job outside your own organisation. It is often deployed after a position has been eliminated in a reorganisation. Outplacement offers tailored support, such as career coaching, job-application training and exploring employment options.
Through an outplacement programme you can discover where your strengths lie and how best to apply them in the labour market. An outplacement budget is often included in the social plan, allowing you to choose an agency yourself. More about the duration of outplacement programmes and what outplacement precisely involves is important for making a well-informed choice.
Practical example: after a position was eliminated within a manufacturing company, an employee started an individual programme with a coach and found a new challenge that matched his competencies within a few months.
Practical steps after your position is eliminated
It is advisable to keep an overview immediately after receiving the news that your position is being eliminated. Take the following steps:
Engaging an independent career coach can help you make choices during this period. Information about how an outplacement programme unfolds and the role of the coach provides additional insight.
Rights and obligations in a dismissal through reorganisation
If your position is eliminated, you are entitled to clear communication, a correct dismissal procedure and financial settlement. You are obliged to cooperate with redeployment and, if offered, with outplacement. Employers must inform you in good time and be transparent about the reason for dismissal.
Specific rules also apply in the event of illness or partial incapacity for work. More about resigning during illness or outplacement during illness helps to better understand these situations.
As an employee, you also have the right to choose guidance from an external agency. Be aware that you are entitled to a notice period, and what the notice period for a permanent contract means.
Common pitfalls and tips to avoid them
The process of a position being eliminated in a reorganisation is often hectic. Common pitfalls include signing documents too quickly, insufficient attention to the transition payment and a lack of clarity about the outplacement budget. Take the time to have everything properly reviewed.
Another pitfall is underestimating the emotional impact. Seek professional guidance in good time to process the changes. Discussing outplacement in consultation with your employer can help make the transition smoother.
Watch the deadlines in the process, especially for objection or appeal procedures. Share experiences with others in the same situation or ask a career coach for advice. Outplacement in a reorganisation also offers practical guidance.
Example scenario: from an eliminated position to new opportunities
Imagine: an employee in an administrative role hears that her position is disappearing due to digitalisation. After a programme of orientation, conversations with HR and an outplacement coach, she discovers her interest in project management. With targeted training and job-application guidance, she finds a new, suitable position outside the organisation. This shows how making use of the available arrangements and guidance can turn out positively.
Summary
When your position is eliminated in a reorganisation, you face complex procedures and important choices. A good understanding of your rights, the legal steps, the financial consequences and making use of outplacement is essential. Take the time to review the social plan, seek guidance from professionals and make well-considered choices for your future.