Reorganization Archives

What is a social plan?

A social plan is an agreement between employer(s) and trade union(s), in which agreements are laid down that regulate the consequences of a reorganization. Does the reorganization have consequences for you as an employee? Then the employer must apply the social plan. For example, if it has been decided to move your work to another location, to no longer carry out certain work, or to do the same work with fewer people.

The social plan states your rights and obligations. You can also find out whether your position may be eliminated or not, and what your employer must do to help you find another position (and which other positions you must accept). Are you unable to find another job? Then you are often entitled to a termination payment. This is also arranged in the social plan.

What is a request for advice?

If an employer wants to reorganize, the works council must first be asked for advice. This is called the request for advice. The reorganization may only be implemented after this advice. In the request for advice you can read what your employer's plans are. For example, which positions will lapse, and which activities will be terminated or moved to other departments.

When is collective redundancy?

This form of dismissal applies if 20 or more employees in the same work area are dismissed by the employer within 3 months. The Wmco (Notification of Collective Dismissals Act) indicates what the employer must comply with in this situation. For example, reporting collective redundancies by the employer to the UWV and the trade unions will also have to be consulted.

What am I entitled to when my employment ends?

If your employer draws up a Social Plan, it will state what you are entitled to upon termination of employment. This can be, for example, a compensation, exemption from work or the possibility to use an outplacement agency (for guidance from work-to-work). However, an employer is not obliged to draw up a Social Plan.
Your employer may also offer you a settlement agreement. Have you received a settlement agreement from your employer? Please have this legally checked before responding. De Unie can help you with this.
If your employer does not follow these routes, he must submit an application to the UWV to request permission to terminate your employment contract. After permission from the UWV, your employer must still cancel in writing. The employer must observe the notice period and you may be entitled to a transition payment.

I am redundant. What does that mean for me?

Due to a reorganization, your position may lapse or fewer employees are needed in a certain position. As a result, you can be declared redundant. Always ask your employer for a written explanation as to why you have been found to be redundant and which schemes you can use. Consider, for example, guidance from work-to-work, a severance package with compensation or facilities that are included in a social plan. A number of provisions that may be included in a social plan include severance pay, suitable work within the organization and work-to-work guidance outside your employer. Unfortunately, it can also mean that you will be dismissed from your employer.

What is the reflection principle?

The reflection principle determines, in case of dismissal for business reasons, the sequence in which the dismissals take place. The purpose of the reflection principle is to ensure that you allow the organization to shrink in such a way that the age structure of the workforce remains the same as much as possible before and after the layoff round. According to the reflection principle, an employer, per age group, must be the first to nominate the employee with the shortest employment contract for dismissal.