Applying for a UWV Dismissal Permit for Business Economic Reasons: How It Works

Is your employer threatening to dismiss you on economic grounds? If so, there is a good chance they will need to apply to the UWV for a dismissal permit. That procedure follows strict rules: your employer must properly substantiate their plans, and you have the right to submit a defence. Below you will find a precise explanation of how this process works and what you can do to protect your position.

When is a dismissal permit from the UWV required?

Not every reason for dismissal automatically leads to a UWV procedure. The dismissal procedure via the UWV is specifically intended for dismissal on economic grounds or due to long-term incapacity for work. Economic grounds include the company's poor financial situation, a reduction in work, the disappearance of roles due to technological changes, a reorganisation, the closure of the business, or the outsourcing of activities. It is important that the situation must be structural: the circumstances are not expected to disappear within 26 weeks. Only then may your employer approach the UWV for permission to dismiss you.

What must your employer demonstrate?

Simply citing an economic reason is not sufficient. Your employer must substantiate the reason concretely with supporting documents, such as financial figures from the accounts. In addition, the UWV tests a number of further conditions before granting permission:

• The economic reason has been sufficiently demonstrated and the dismissal is genuinely necessary to keep the business financially healthy.
• The correct order of dismissal has been followed, generally by applying the reflection principle (afspiegelingsbeginsel): employees are divided into age groups, and within each group the employee with the shortest length of service is the first to be considered for dismissal.
• Your employer has first investigated whether redeployment to another suitable position is possible, including after any retraining.
• In the case of open-ended employment contracts, the UWV also considers whether temporary workers and agency workers have already been or will be dismissed before permanent employees are dismissed.

If twenty or more employees are dismissed within three months, additional rules apply regarding the notification of collective dismissal, in which trade unions and the works council also play a role.

How the UWV procedure works, step by step

The application for a dismissal permit consists of three forms (parts A, B and C), which your employer completes and uploads together with the required supporting documents via the UWV Employer Portal. Part A contains the employer's details, part B the details of the employees concerned, and part C the substantiation of the grounds for dismissal. The UWV then assesses whether the application is complete and substantively sufficient.

Once the application is taken into substantive consideration, the UWV will send you, as the employee, a copy. You then have fourteen days in which to submit a written defence. This deadline is strictly observed, so do not wait too long. After your response, the UWV may initiate a second round of hearing both parties. In practice, the procedure takes a minimum of four weeks from the point at which substantive consideration begins, but it frequently runs to eight to ten weeks.

Practical tips if you are expecting a UWV procedure

• Request all documents straight away. As soon as you receive the copy of the dismissal application, keep everything carefully. The fourteen days for your defence pass quickly.
• Check the proportional selection principle (afspiegelingsbeginsel). Examine critically whether your employer has established the correct order of dismissal. An error here can cause the dismissal permit to fail.
• Ask about redeployment possibilities. Has your employer genuinely explored all options for placing you in a different role? If not, that is a strong point in your defence.
• Let op opzegverboden. Are you ill, pregnant, or do you have another protected status? In such cases, the UWV is not permitted to grant its approval.
• Do not sign anything without taking advice. If, alongside the UWV procedure, you are also presented with a settlement agreement, always have it checked first before you sign anything.
• Make a note of the date of dismissal. If the permit is granted and your employer dismisses you, you have two months from the date of dismissal to apply to the subdistrict court if you disagree with the decision.

What happens after the UWV reaches a decision

The UWV sends its decision to you and your employer simultaneously. If the UWV grants the dismissal permit, your employer is entitled to terminate your employment contract. The permit is only valid for four weeks: if your employer does not use it within that period, the permission lapses and they must start the process again. Following termination, you are entitled to the transition payment and may qualify for unemployment benefit (WW).

Do you disagree with the permit that has been granted? You can no longer lodge an objection with the UWV itself. However, within two months of the date of dismissal you can submit a petition to the subdistrict court. The court will review the case afresh and can reinstate your employment contract or award you a fair compensation payment. If the UWV refuses to grant the permit, your employment contract simply remains in place. In that case, your employer may apply to the subdistrict court for dissolution of the employment contract; the court will then review the matter entirely from scratch.

If you would like to know more about the broader context of dismissal on business-economic grounds, you can read all about it at Reorganisation and Redundancy in Eindhoven.

Assistance with applying for a dismissal permit from UWV

A UWV procedure moves quickly and its deadlines are strict. Whether you want to know whether your employer's defence holds up, or you simply want to check that the procedure is being followed correctly: at Arbeidsjurist Eindhoven we are ready to provide practical, personal advice. We know the local labour market in Eindhoven and the Brabant region and will help you swiftly and clearly. Contact us without obligation for an initial conversation about your situation.

Frequently asked questions

When does my employer need to apply to the UWV for a dismissal permit?

Your employer is required to apply to the UWV for a dismissal permit if they wish to dismiss you on business-economic grounds or following two years of illness. For other grounds of dismissal, such as underperformance or an irreconcilably disrupted working relationship, the procedure goes through the subdistrict court.

How long does a UWV procedure for dismissal on business-economic grounds take?

From the moment the UWV begins substantive consideration of the application, the procedure takes a minimum of four weeks. In practice, processing times of eight to ten weeks are not unusual, particularly if the UWV requests additional information or a second round of hearing both sides takes place.

What can I do if the UWV grants the dismissal permit but I disagree with the decision?

You can no longer lodge an objection with the UWV itself. However, within two months of the date on which your employment contract ended you can submit a petition to the subdistrict court. The court will review the case afresh and can reinstate your contract or award you a fair compensation payment.

What is the re-employment condition attached to a UWV dismissal permit?

If the UWV grants the dismissal permit on business-economic grounds, the re-employment condition applies. This means that your employer is obliged to approach you first, within 26 weeks of the date of dismissal, should a vacancy arise for the same or comparable work.

Am I entitled to a transition payment if my employer dismisses me via the UWV procedure?

Yes. If the UWV grants the dismissal permit and your employer subsequently dismisses you, you are entitled to the statutory transition payment. The amount depends on your gross monthly salary and the length of your employment. You may also be eligible for unemployment benefit (WW).

We are happy to think along with you. For advice tailored to your situation, we would be glad to talk. No rights can be derived from the content of this page and it may contain inaccuracies.