Reorganization and restructuring
Reorganization and restructuring
Reorganization
Organizations are constantly changing. Through mergers, technological developments, cost control or strategic reor
Reorganizations have an impact on both sides of the table. For employers, it is a legal and strategic process that must be carefully executed. For employees, it often raises immediate questions: is my dismissal justified? and how do I ensure I receive a fair or maximum compensation?
We guide reorganizations with consideration for both perspectives. We support employers in drafting a legally sound plan, carefully following co-determination procedures and complying with redeployment obligations. We advise employees on their rights, the assessment of a dismissal or settlement agreement, and negotiating the most favorable possible arrangement or transition compensation.
This way, we ensure that a reorganization not only proceeds correctly and strategically for organizations, but also transparently and fairly for the employees who are affected.
Legally complex and sensitive process
A reorganization affects multiple interests. In addition to business economic arguments, the legal position of employees, the role of the works council (OR), external communication and the risk of legal proceedings play a major role.
Critical success factors in dismissal and reorganization
Whether you are an employer or employee: in a reorganization, everything revolves around due diligence. For employers, this is essential to ensure procedures run smoothly and avoid legal risks. For employees, it is important to know whether the dismissal is justified, and whether all steps have been taken according to the law.
Important points of attention in a reorganization are:
Validity of the business economic justification: is the financial or organizational reason for dismissal correct?
Correct application of the reflection principle: is the dismissal order fairly distributed across age groups?
Assessment of the redeployment obligation: has it been seriously investigated whether redeployment within the organization or group is possible?
Timely and proper involvement of the works council (OR) or employee representation.
Careful communication to involved employees: clarity prevents uncertainty and conflict.
Legal substantiation of individual dismissal files: especially in cases of poor performance or disrupted relationships.
An inaccurate approach often leads to delays at the UWV, the district court or within the organization. For employers, this means loss of time and money. For employees, this can actually provide opportunities to challenge dismissal or negotiate better severance compensation.
Our approach: legally strong and practically workable
Guidance in reorganization from A to Z
As a specialized employment law firm, we guide complete reorganization processes. In doing so, we ensure that the process is not only legally correct, but also executable within the practice and context of the organization. For employers, this means a solid and efficient process, for employees the assurance that their rights are taken seriously.
Our services in reorganizations include:
Legal analysis and risk assessment of the reorganization plan
Advice on job groups, application of the reflection principle and the redeployment obligation
Preparation and guidance of advisory processes with the works council or employee representation
Drafting or reviewing social plans, including agreements on compensation and guidance
Legal support in UWV procedures or concluding settlement agreements
Strategic consultation with HR, management and communication to ensure support and reputation
This way, we ensure that a reorganization proceeds carefully, risks are managed and all parties involved receive clarity about their position and possibilities.
Reflection principle and redeployment obligation: accuracy required
In case of dismissal for business economic reasons, the reflection principle is leading: within a job group, it is determined which employees per age category are first eligible for dismissal. In practice, this leads to discussions about job descriptions and actual duties.
Additionally, the redeployment obligation applies. Employers must be able to demonstrate that redeployment, with or without training, is not possible within a reasonable period. Without a carefully built file, the UWV can reject a dismissal application.
Reorganization and works council: formal and strategic
For many reorganizations, an advisory obligation applies under the Works Councils Act (WOR). Trade unions may also be involved in drafting a social plan.
A well-coordinated process with the OR and other stakeholders prevents delays and increases support within the organization. We advise on both the formal and strategic aspects of these processes.
Common reorganization scenarios
We advise on:
- Restructuring of teams or departments
- Reorganization after merger or acquisition
- Closure or relocation of establishments
- Dismissal rounds due to digitalization or automation, for example as a result of AI
Our added value as a legal partner
We combine in-depth knowledge of employment law with experience in organizations in transition. Whether it involves strategic consultation or complete guidance of a reorganization process: we ensure that your process is legally sound and can be effectively executed.
Our employment law attorneys have extensive experience with reorganizations in various sectors and help you limit risks and achieve objectives.
Our specialists are ready for you
- Personal strategy
- Maximum results
- Complete peace of mind
Case study
Reorganization in the technology sector
An international technology company had to lay off 15% of its staff after losing a major client.
We guided:
- The substantiation of business economic necessity
- The advisory process with the works council
- The assessment of job groups and reflection
- The drafting of settlement agreements
- Communication with employees
Result: a carefully conducted reorganization without procedures or prolonged resistance.
Case study
Reorganization in the technology sector
An international technology company had to lay off 15% of its staff after losing a major client.
We guided:
- The substantiation of business economic necessity
- The advisory process with the works council
- The assessment of job groups and reflection
- The drafting of settlement agreements
- Communication with employees
Result: a carefully conducted reorganization without procedures or prolonged resistance.
View our other areas of expertise as well
Employment law questions? We'll help you move forward
Are you facing an important decision regarding personnel, employment conditions, or a reorganization? Discuss your situation with us and receive clear legal advice you can act on immediately.