REORGANISATION

Rules in the event of a reorganisation

Table of contents

What are the rules on reorganisation? Our employment lawyers have listed the rules for you. Read more about them here.

A reorganisation can happen to anyone, whether you are an employee or an employer. Perhaps the company you work for is merging with another company or there are costs to be cut. A reorganisation often means change: some functions disappear, others are modified and, in some cases, redundancies are made. But what exactly are the rules concerning a reorganisation?

Why a reorganisation?

An employer may not dismiss employees just like that. There must be a good reason, such as:

Financial problems, such as low turnover or imminent bankruptcy;
Technological developments, for example if machines or software will take over the worker's work;
A new business structure, such as in a merger or acquisition.

How is it determined who gets fired?

When reorganising, an employer does not just arbitrarily look at who should be dismissed. This is done through the reflection principle. This means that within a particular job, age groups are considered first. Within each age group, the employee with the shortest employment is dismissed first. This prevents the employer from deciding who will be dismissed first, where there will be a fair distribution.

Should the employer request permission for dismissal?

Yes, in most cases they do. In case of collective redundancies (20 or more people within 3 months), the employer must notify the UWV, the unions and the Works Council. In addition, for individual dismissals, the employer must request permission from the UWV or negotiate a settlement agreement with the employee.

What about the notice period and transitional allowance?

If you are fired, you are usually entitled to a transitional allowance. This is compensation for your dismissal and amounts to 1/3 of your monthly salary per year worked. The employer must also comply with the notice period, which depends on how long you have been employed.

Can the employer offer another job within the company?

Yes, the employer is obliged to try. This is called reassignment. If another suitable position is available, the employer must discuss this with you. In addition, some companies also offer outplacement. This means you get help finding a new job outside the company.

What if you disagree with your dismissal?

You have several options:

Make an objection to the UWV (must be filed within 14 days of dismissal);
Going to the cantonal court (must be done within two months);
Negotiate better terms of dismissal with help from a lawyer.

Social plan in the event of reorganisation

During major reorganisations, companies often create a social plan. These include agreements on:

Need help during dismissal in reorganisation?

A reorganisation can be drastic, but there are rules that protect both employees and employers. For employers, it is important to communicate transparently and comply with the law. Employees would do best to know their rights and, if necessary, seek legal advice. We can help you with this. Contact our lawyers if you need help with dismissal in reorganisation.

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