Employee rights during reorganisation (reorganisatie) cover all the statutory and contractual rights of staff who are affected by a reorganisation within their organisation. This includes, among other things, protection against dismissal, redeployment, the employer’s duty to inform, and entitlement to outplacement. In this article you will find an in-depth explanation of these rights and the practical consequences for employees.
What does a reorganisation mean for employees?
A reorganisation is a process in which an organisation makes far-reaching changes to its structure, workforce or way of working. As a result, employees may be declared redundant (boventallig) or lose their role. The impact on employees is often significant, both emotionally and practically. Questions frequently arise about job security, rights on dismissal and the support one may expect.
In practice, a reorganisation means that there may be fewer jobs, that roles change or disappear, or that departments are merged. For employees this brings uncertainty, but also the right to clear communication and fair treatment. It is essential that staff are properly informed about the process and their position within it.
Employers must comply with statutory rules, such as consulting the works council and drawing up a social plan (sociaal plan). This gives employees clarity about their rights and the possible next steps.
In addition, reorganisations often create opportunities to receive guidance towards new work through, for example, outplacement. This process is unfamiliar to many employees, but it can offer a great deal of support during a difficult period.
The legal basis of employee rights during reorganisation
The rights of employees during a reorganisation are laid down in Dutch employment law. The most important legislation consists of the Civil Code (Burgerlijk Wetboek, BW), the Works Councils Act (Wet op de ondernemingsraden, WOR) and regulations of the UWV (the Dutch employee insurance agency). Collective labour agreement (cao) arrangements and employment contracts also have an influence.
During a reorganisation, an employer must meet strict conditions in order to proceed to dismissal. Collective dismissal applies when more than twenty employees are dismissed within three months. In that case the Collective Redundancy (Notification) Act (Wet melding collectief ontslag, WMCO) applies, and consultation must take place with the trade union and the UWV.
In addition, the reflection principle (afspiegelingsbeginsel) applies to dismissal on account of reorganisation. This means that employees within the same role must be selected on the basis of age and length of service. This prevents arbitrariness and ensures transparency.
The UWV assesses whether the reorganisation is necessary and whether all conditions have been met. Only after approval may the employer proceed to dismissal, usually with a notice period (opzegtermijn).
Duty to inform and transparency during a reorganisation
Employers are obliged to inform employees in good time and in full about an upcoming reorganisation. This often begins with an announcement to the works council and trade unions, followed by communication to staff.
The duty to inform means that employees must be given clarity about the reason for the reorganisation, the timeline, and the consequences for their role. This can partly remove uncertainty, which is important for mental wellbeing.
In practice, staff are invited to individual meetings in which their personal situation is discussed. During these conversations the topic of raising outplacement may also come up, as well as the rights surrounding redundancy.
A social plan, often worked out in consultation with the trade unions, provides frameworks for work-to-work guidance, financial arrangements and redeployment.
Redundancy and redeployment: what are the rights?
When a role is discontinued or the number of jobs is reduced, an employee may be declared redundant (boventallig). This means that the employee is formally no longer needed within the organisation. Even so, the employer is legally obliged to investigate whether redeployment within the organisation is possible, for example in a comparable or suitable role.
Redeployment must be seriously investigated. This means that the employer must actively look for alternatives and must support the employee with any necessary training or retraining. Only when it turns out that no suitable role is available can dismissal follow.
At this stage it is also important to know what it means to be declared redundant and which rights come with it, such as the right to information, guidance, and in some cases additional financial support.
For staff who cannot be redeployed straight away, a mobility scheme or outplacement programme is often offered. This provides support in finding new work outside the organisation.
Dismissal procedure during reorganisation and UWV assessment
The employer must apply to the UWV for permission to dismiss on economic grounds. The UWV assesses whether the dismissal is necessary and whether the reflection principle has been applied correctly. It also looks at whether the employer has made sufficient efforts to make redeployment within the company possible.
The UWV process consists of submitting dismissal applications, an assessment and any hearings. Employees have the opportunity here to put forward a defence, for example if they believe the reflection principle has been applied incorrectly or if redeployment is still possible.
When the UWV grants permission, the statutory notice period applies to employees. In some cases a dismissal by mutual consent can be arranged through a settlement agreement (vaststellingsovereenkomst, VSO), which often leaves room for additional agreements such as outplacement or a higher transition payment (transitievergoeding).
It is wise to have your rights and obligations properly reviewed, for example by a lawyer or trade union, especially when there are doubts about the procedure.
Transition payment and financial arrangements
In the event of dismissal on account of reorganisation, an employee is in principle entitled to a transition payment (transitievergoeding). Its amount is set by law and depends on the number of years of service and the salary. This payment is intended as financial support during the move to another job or during a period without work.
In addition to the transition payment, there may be additional arrangements, depending on the social plan or individual negotiations. Think of an extra severance payment, a contribution towards training or education costs, or an allowance for outplacement.
It pays to look carefully at the conditions set out in the social plan and at whether the employer complies with the statutory rules. This prevents you from missing out on your rights, for example with regard to the transition payment or other financial compensation.
Within some sectors, specific collective labour agreement (cao) arrangements apply regarding payments and guidance. Always check your terms of employment and discuss your options with HR or a career specialist.
Outplacement as a right and an opportunity during reorganisation
Increasingly, outplacement is used during reorganisations as a tool to guide employees towards new work. Outplacement is not a statutory right, but it is often included in the social plan or offered as part of the termination arrangement.
An outplacement programme offers tailored guidance, aimed at finding a new job outside the organisation. This can consist of career advice, application training, networking and personal coaching. The aim is to make the move to another job go as smoothly as possible.
The benefits of outplacement are substantial: employees receive personal support, increase their chances on the labour market and receive practical tools to give their career a new direction. You can find out more about the process at how an outplacement programme works and what guidance the coach provides.
Employers often choose outplacement in order to act in a socially responsible way and to soften the impact of dismissal. In many cases the costs of this are borne wholly or partly by the employer.
Practical examples of rights and the outplacement process
Consider this: an employee with twenty years of service is declared redundant after a reorganisation. The employer offers an outplacement programme, in which the employee receives support with drawing up a new CV, application letters and exploring the labour market. In addition, they receive a transition payment.
Another example: an employee with a temporary role sees their contract not renewed because of the reorganisation. In that case too, specific rules apply, for example regarding the notice period of a one-year contract. Outplacement can help to gain new prospects on the labour market quickly.
Finally: an employee falls ill during a reorganisation. It is important to know that even then dismissal must follow the correct procedure and that dismissal during illness is bound by strict rules. The combination of reintegration (re-integratie) and outplacement calls for tailored advice.
These examples show that every situation is unique and that it pays to map out your own rights and options carefully.
Guidance and step-by-step plan for a reorganisation
During a reorganisation it is advisable to act proactively. Below you will find a step-by-step overview of what you can do as an employee:
- Ask for clear information about the reorganisation and the consequences for your role.
- Check your employment contract, collective labour agreement (cao) and social plan for arrangements regarding dismissal and guidance.
- Ask HR about (redeployment) options within the organisation.
- Seek advice from a lawyer, trade union or career expert if anything is unclear.
- Consider the options of an outplacement programme for personal guidance towards new work.
- Pay close attention to the deadlines around lodging objections, UWV procedures and signing a settlement agreement.
- Ask about training and budget options for reorientation or retraining.
Following this step-by-step plan helps you to keep a grip on the situation and not miss important rights or opportunities.
Common mistakes and misunderstandings during reorganisation
Despite the statutory safeguards, misunderstandings regularly occur in practice. A common mistake is that employees agree too quickly to a settlement agreement without checking their rights. As a result, they can lose protection against dismissal and their entitlement to unemployment benefit (WW).
It is also often thought that redeployment is a formality, whereas the employer must genuinely make efforts. It is important to lodge an objection if this does not happen.
Furthermore, there is a misunderstanding that outplacement makes no difference. In reality, a good outplacement programme often offers new opportunities and tools for the future.
Finally: do not forget that you always have the right to information, clarity and support. Actively ask for this, especially in the case of far-reaching changes such as a reorganisation.
Short summary
Employee rights during reorganisation include, among other things, the right to information, protection against arbitrary dismissal, redeployment, financial compensation and support through outplacement. Every situation is unique and calls for a tailored approach. By thoroughly familiarising yourself with your rights, the social plan and the available guidance, you can get through a reorganisation with more strength and better prospects.
As an employee, you can read more about outplacement for employees.