Dismissal in case of restructuring

Settlement agreement under Dutch Law

Dismissal in case of restructuring


Settlement agreement under Dutch Law

Dismissal in case of restructuring


Settlement agreement under Dutch Law

Know your rights

Your employer is dismissing a part of its staff and your position also becomes redundant, for instance due to the coronavirus crisis. What are your rights and obligations in that case under Dutch law? And what severance payment is appropriate?

A restructuring (or redivision, reorganisation, spending cut, modernisation, privatisation, outsourcing) means a change within the business or the (civil) organisation where you work. Your position may become redundant as a result of a restructuring and this may lead to dismissal under Dutch law. However, strict rules are applicable in case of dismissal due to restructuring (see below). So know your rights.

What to do in case of dismissal?

Were you informed that you are going to lose your job as a result of a restructuring? The attorneys-at-law of Wessel Van der Lans can assess whether the employer decided on good grounds to proceed with dismissal. They can perform a legal check of the settlement agreement that was presented to you.

Wessel Van der Lans Attorneys-at-Law can also advise you on the level of the severance payment and other appropriate conditions in case of dismissal, e.g. exemption from work/garden leave, outplacement, pro rata bonus payments, the 30%-ruling and release from a potential non-competition clause. The attorneys-at-law of Wessel Van der Lans can also negotiate on your behalf about the terms of the settlement agreement. We can also advise you on your entitlement to unemployment benefits.

The legal expenses are almost always reimbursed by the employer.

Do you have any questions? Then call us or fill in the contact form. One of our attorneys-at-law will then call you back. During an initial telephone conversation you are informed how we work and what we can do for you. You receive a fast reaction from us, because we know that tight deadlines are often applicable in case of dismissal due to a restructuring.


Restructuring under Dutch law – Know your rights

  • First of all, the employer must demonstrate that there are good legal grounds for the restructuring. The employer must also render it plausible that your position becomes redundant as a result of the said restructuring;
  • In most instances it is mandatory to consult with the works council or a staff representation;
  • The employer is not free to decide who is going to be dismissed and who can stay. The employer is held to apply the so called mirroring principle (“afspiegelingsbeginsel”) and to determine the exchangeability of positions, also when new positions are created during a restructuring. Moreover, the employer must examine if you can be reassigned elsewhere within the organisation; 
  • In case of dismissal due to a restructuring you are entitled to a severance payment. The level of the severance payment varies widely, however it should at least amount to the so called transition payment (“transitievergoeding”). You can often claim an amount that is higher than the transition payment.
  • In case of sickness or pregnancy other rules are applicable to you and you cannot be dismissed in all instances;
  • Sometimes it is possible during a restructuring to personally opt for dismissal. You then create a place for another employee whilst relying on a voluntary job retention scheme or a voluntary redundancy scheme. In that case you are usually entitled to a severance payment and you often also receive a benefit after the end of the employment.

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