Reorganisation: everything you need to know

Social plan

Depending on the number of employees working for your employer, your employer must seek advice from the works council regarding the proposed reorganisation. It may also be necessary for your employer to inform the union. This is the case with a collective dismissal (more than 20 employees within three months). Additionally, the CLA for contract catering stipulates that an employer must meet with the relevant unions if they wish to reorganise. The CLA for day recreation contains a similar provision if the reorganisation affects 10 or more employees.

When we become involved in a reorganisation, we investigate whether a reorganisation is truly necessary. We will always try to prevent you or your colleagues from being made redundant. If redundancies are unavoidable, we do everything possible to mitigate the consequences for everyone. We achieve this by making agreements in a social plan. A social plan outlines the impact of the reorganisation on the employees. This applies to employees who remain, as well as those who are made redundant. After negotiations, we present a social plan to our members for approval. Only after the social plan is approved will we sign the plan.

Redundancy

In a reorganisation, your employer's company is reorganised to prevent bankruptcy. As a result of the reorganisation, roles or positions are eliminated. Employees who were working in those roles or positions before the reorganisation are declared redundant. This does not happen arbitrarily but is based on the 'principle of reflection'. If you are declared redundant, it is expected that you will be redeployed or dismissed.

Reflection principle

The reflection principle ensures that the age distribution of employees at the employer remains as consistent as possible. The employer cannot dismiss employees at their own discretion. The reflection principle means that temporary contracts, on-call contracts, or agency agreements are terminated first. The remaining employees with interchangeable roles are divided into age categories (25-35, 35-45, 45-55, 55+). Within these age categories, employees are dismissed according to the last-in-first-out principle, while keeping the age distribution as balanced as possible.

Redeployment

A reorganisation affects everyone working at a company. In some cases, you may be offered another position internally or externally. This could be the same role at a different location or a different role altogether. Your employer may also assist you in finding a job at another company. This is known as redeployment. If there is a social plan, it often includes agreements about redeployment, such as alternative work that may be offered to you or adjustments to your salary.

Dismissal

During a reorganisation, multiple employees are often dismissed simultaneously. Whether you are also dismissed depends on the reflection principle. If you are declared redundant based on the reflection principle and there are no redeployment opportunities, you will be nominated for dismissal. The dismissal procedure generally goes through the UWV. A social plan may stipulate that a dismissal committee, rather than the UWV, handles the dismissal application. A social plan may also provide that before a dismissal procedure, you have the opportunity to agree to your dismissal through a settlement agreement.

Settlement agreement

In a settlement agreement, you and your employer mutually agree to terminate your employment. If there is a social plan, the conditions under which this occurs are largely outlined in that plan. You cannot be forced to cooperate with a settlement agreement. Whether it is wise to cooperate with a settlement agreement depends on the circumstances and the specific offer your employer makes. Always ask your employer for a written proposal and a reasonable period to consider it so that you have the opportunity to seek legal advice. A termination proposal must meet certain conditions to secure your right to unemployment benefits. For instance, it is important that your employer initiated the dismissal and the correct notice period is observed. Read more about the settlement agreement.

Dismissal procedure

Are you redundant and have you refused the settlement agreement? Then your employer will apply for a dismissal permit from the UWV on economic grounds. Your employer must demonstrate that there is a structural decline in jobs, that the correct order of dismissal has been followed, and that there are no possibilities for your redeployment. You will have the opportunity to defend yourself, and the UWV will make a decision. If your employer is granted permission to terminate your employment, they must do so within four weeks, observing the applicable notice period. If your employer's request is denied, they can repeat the request with the subdistrict court.

Reorganisation during illness and pregnancy

In the first two years of your illness, there is a prohibition on termination. This prohibition also applies during your pregnancy, maternity leave, and the first six weeks after you return to work. A termination prohibition generally prevents the approval of a request to dissolve the employment contract. This means that, in principle, as an employee who is ill or pregnant, you are excluded from a reorganisation. 'In principle' because there are some exceptions. The termination prohibition does not apply if you agree to the dismissal, in the event of bankruptcy or business closure (the prohibition during maternity leave still applies in this case), if you became ill only after the UWV received the dismissal application, if you do not cooperate with your reintegration without good reason, or if you have been ill for more than two years. If you are unsure whether the social plan applies to you, please contact one of our legal experts.