As of July 1, 2025, the UWV Implementation Rules for dismissal due to economic reasons have been updated. Employers dealing with reorganizations, business acquisitions, or financial problems, and employees who may be affected by these changes, would do well to understand this modification thoroughly. Below you can read what exactly changes and what this means for your organization or employment position.
Dismissal Due to Economic Reasons: how Does it Work?
When an employer wants to dismiss employees due to economic reasons – such as a reorganization, decline in revenue, or relocation – a dismissal permit from the UWV is required. The UWV assesses the application based on the Implementation Rules, in which the UWV provides guidelines and explains how a dismissal application is evaluated.
Most Important Change: New Chapter on Transfer of Undertaking
The most notable change in the updated version of July 2025 is the addition of chapter 6: Transfer of undertaking.
In the case of a transfer of undertaking – for example, during an acquisition or merger – employees may not be dismissed due to the transfer. This is legally prohibited. Only if there are economic, technological, or organizational (ETO) reasons that are separate from the transfer itself, can the UWV still approve a dismissal.
By including this new chapter, the UWV provides more clarity in these types of complex situations.
What Does Chapter 6 Contain?
The new chapter provides employers, acquiring parties, and legal advisors with more guidance for a dismissal application in the context of a transfer of undertaking. The UWV describes, among other things:
- In which cases dismissal during or after a transfer of undertaking is permitted;
- How the new employer can be involved in the UWV procedure;
- Which information is mandatory in the dismissal application, such as:
- The date and nature of the transfer;
- The scope of the acquisition (complete or partial);
- The identity of both the old and new employer;
- A substantiation of the ETO reasons;
- Insight into the possibilities for staff redeployment.
What Does this Mean for You as an Employer?
For employers, this means that there is more clarity in advance about dismissal possibilities and required information in case of transfer of undertaking, allowing you as an employer to better orient yourself and prepare for a dismissal application. Good preparation is essential for an efficient and successful application.
Want to Know more or Need Legal Advice?
Do you want to know what these new UWV implementation rules mean for your organization, merger, or acquisition situation?
📞 Contact Wessel van der Lans without obligation – specialist in employment law and dismissal procedures. We are happy to help you with a clear strategy and expert advice.
🔍 Or view the complete regulations on the UWV website.
