SETTLEMENT AGREEMENT

Social plan in case of dismissal in the Netherlands: 5 tips what to look out for

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It is essential to be well-informed about the content of the social plan and to know what to look out for in case of dismissal. We explain it to you.

What is a social plan?

A social plan is an agreement between an employer and unions that is drawn up in the event of a reorganisation, merger or other major corporate restructuring. This plan contains agreements on the measures to be taken to mitigate the consequences of dismissal for employees. As an employee, it is essential to be well informed about the content of the social plan and to know what to look out for in case of dismissal. In this blog, we explain what a social plan entails and which points are important for you as an employee.

What does a social plan contain?

A social plan aims to mitigate the consequences of dismissal for employees in the Netherlands. It contains agreements on topics such as:

Severance compensation: A social plan often includes an arrangement for severance compensation. This compensation is meant to compensate you for losing your job. Often, the severance compensation is higher than the outcome of the legal transitional allowance.
Guidance to other work: The social plan may contain agreements on guidance to other work, such as outplacement guidance or training to increase your chances on the labour market.
Notice period: The notice period is the period between the announcement of the dismissal and the actual end date of your employment. The social plan may contain specific agreements on an extended or shortened notice period.
Re-employment: Sometimes the social plan includes agreements on re-employment within the company or concern. This means that the employer makes an effort to redeploy you within another function.
Redundancy scheme: This is a scheme that determines the order in which employees are dismissed. It often takes into account factors such as seniority (length of service), age and family situation. This is also known as the 'separation principle'.

Need advice?

What do you need to pay attention to with a social plan?

If you are faced with dismissal in the Netherlands and a social plan applies, there are several things you should pay attention to. Below are 5 tips for checking the social plan:

Severance pay: Check whether the severance pay in the social plan is higher than the statutory transitional compensation. This is often the case, but not always. Make sure you know what you are entitled to.
Guidance and Training: Look carefully at the agreements on guidance and training. This can significantly improve your chances on the labour market. Ask about the quality of the outplacement guidance and whether the training offered matches your ambitions.
Relocation within the company: If the social plan provides for relocation, it is important to know which positions are offered and under which conditions. Make sure you are well informed about your options within the company.
Severance scheme: Understand how the severance scheme works and what criteria are used. This may affect your position in a reorganisation.
Additional Compensation: Sometimes a social plan agrees on additional allowances, such as a relocation allowance in case of reassignment to another location or compensation for legal costs. Check whether you are entitled to these and how to claim them.

Legal assistance with social plan

At Arbeidsjurist Eindhoven, we know that a dismissal in the Netherlands, especially for international employees, can be complex and legally challenging. It is therefore always wise to seek advice when you are faced with dismissal. We check whether the agreements, of the social plan or settlement agreement, are in your favour. If there are options then negotiate to enforce better terms. Often, the costs of our assistance are fully reimbursed by the employer.

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