- A social plan is an agreement between an employer and employee representatives, such as trade unions, that outlines how employees will be treated in the event of a reorganisation, such as a merger, acquisition or a significant change in business operations. It typically covers aspects like redundancy pay, retraining opportunities, outplacement services, and how employees will be consulted during the process.
A social plan is an agreement between employer(s) and trade union(s), in which arrangements are laid down that regulate the consequences of a reorganisation. If the reorganisation has consequences for you as an employee, the employer must apply the social plan. This applies, for example, if it has been decided to move your activities to another location, to stop carrying out certain activities, or to do the same work with fewer people.
The social plan outlines your rights and obligations. It also states whether your role may be made redundant and what your employer must do to help you find another position (and which alternative roles you must accept). If another job cannot be found, you are often entitled to a redundancy payment. This is also arranged in the social plan.
- Een adviesaanvraag is een gestructureerd proces waarbij een organisatie offreren vraagt van potentiële leveranciers voor een bepaald project of dienst.
If an employer wants to reorganise, the works council must first be asked for advice. This is called the request for advice. Only after this advice has been received can the reorganisation be implemented. The request for advice will outline your employer's plans. For example, which roles will be made redundant, and which tasks will be terminated or moved to other departments.
- There is collective dismissal when an employer dismisses at least five employees within a period of 90 days for reasons not inherent to the employees themselves.
This form of dismissal applies if 20 or more employees in the same work area resign from their employer within 3 months. The Wmco (Notification of Collective Dismissal Act) specifies what the employer must adhere to in this situation. For example, the employer must report collective dismissal to the UWV, and trade unions will also need to be consulted.
- What am I entitled to when my employment ends?
- If your employer draws up a Social Plan, it will outline what you are entitled to upon termination of employment. This could include, for example, a redundancy payment, a period of garden leave, or the option to use an outplacement agency (for work-to-work guidance). However, an employer is not obliged to draw up a Social Plan.
- Your employer may also offer you a settlement agreement. If your employer sends you a settlement agreement, you should have it checked by a lawyer before you respond. De Unie can help you with this.
- If your employer does not follow these routes, they must apply to the UWV for permission to terminate your employment contract. After receiving permission from the UWV, your employer must still terminate your employment in writing. In doing so, 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 reorganisation, your role may cease to exist or fewer employees may be needed in a particular role. As a result, you may be declared redundant. Always ask your employer for a written explanation as to why you have been declared redundant and what arrangements you can make use of. This could include, for example, job transition support, a severance package with compensation, or provisions included in a social plan. Some provisions that may be included in a social plan are, among others, redundancy pay, suitable work within the organisation, and external job transition support. Unfortunately, it can also mean that your employer is dismissing you.
- Het afspiegelingsbeginsel is het principe dat een juridisch document, zoals een overeenkomst of wet, moet worden geïnterpreteerd in overeenstemming met de bedoeling van de partijen die het hebben opgesteld en met hun oorspronkelijke bedoeling bij het opstellen ervan.
The reflection principle, in the case of redundancies for business reasons, determines the order in which dismissals take place. The aim of the reflection principle is to ensure that the organisation is downsized in such a way that the age structure of the workforce remains as similar as possible both before and after the redundancy round. According to the reflection principle, an employer must propose the employee with the shortest period of service for dismissal first, per age group.
Ask for the clear manual!
Ask for the clear manual!
The cabinet wants to shorten the maximum duration of unemployment benefit to one year. This means that if you are dismissed, you will have a shorter entitlement to a wage-related benefit.
In addition, it is proposed that the maximum daily wage be reduced by 20%. This maximum sets the upper limit for unemployment benefit.
The cabinet is also proposing to significantly limit accrual. Currently, for every year worked in the first 10 years, you accrue 1 month of unemployment benefit. If this cabinet has its way, this will be halved to half a month per year worked. This means that after ten years of employment, you will only be able to rely on unemployment benefit for five months instead of 10 months, and will otherwise have to fall back on social assistance.
In addition, the reference period requirement is being adjusted, meaning you will have to have worked for longer to even qualify for the short-term unemployment benefit of 3 months. Both have major consequences, especially for young people.
The benefit in the first two months of unemployment benefit should be increased from 75% to 80%.
Sample calculation (indicative):
- Current maximum daily wage ≈ € 6.600 Gross per month
- Unemployment benefit for the first two months: 80% in the first two months → approximately € 5280 Gross per month
- Unemployment benefit after 2 months (70%) → € 4620 Gross per month
If the maximum daily wage 20% falls:
- New maximum ≈ € 5.280 Gross per month
- Unemployment benefit for the first two months (80%) → approximately € 3.960 Gross per month
- Unemployment benefit after two months (70%): € 3696 Gross per month
That's a difference of nearly €1,000 gross per month at maximum benefit.
For middle and higher incomes, this can therefore mean a significant drop in income.
The plans involve a reduction in benefits under the WIA in several areas. The most significant changes relate to (1) the benefit ceiling and (2) the abolition of IVA (for new entrants).
- Maximum daily wage for benefit purposes
The government wants to reduce the maximum daily wage – the upper limit used to calculate unemployment benefit (WW) and disability benefit (WIA) – by 20%. According to the figures currently being circulated, this amounts to a reduction of approximately € 6.617 to € 5.293,60 gross per month (based on the current monthly maximum).
This particularly affects people with middle to higher incomes: their benefit is “capped” more quickly, meaning the income gap during unemployment or incapacity for work becomes larger. - Abolition of VAT
Currently, people who are fully and permanently incapacitated for work under the IVA scheme receive a benefit of 75% of the (capped) daily wage. Under the proposed changes, the IVA distinction for new entrants will be abolished, bringing this group into line with the current standard under the WGA: 70% instead of 75%. This group will also be subject to reintegration obligations and the risk of reassessments.
Important: according to the budgetary annex to the coalition agreement, current recipients of IVAs will retain their IVA entitlement at the moment of introduction. - WGA: shorter ‘longest-related’ phase
For people in the WGA, the wage-related phase is shortened because it is linked to the duration of unemployment benefit, which is being reduced to one year by the government. This means you will enter a follow-up phase more quickly, with the risk of a low follow-up benefit which is often far below the social minimum. In some cases, people are entitled to a supplement from the UWV up to the social minimum.
For people with supplementary insurance for an excess, it depends on the policy terms whether this difference is compensated (and for how long).
For the state pension (AOW), the intention to further increase the state pension age means that you may become entitled to your state pension earlier than previously agreed in the Pension Agreement. In the coalition agreement, the state pension age is linked 1-to-1 to the increase in life expectancy, as opposed to 8 months per year of life as part of the pension agreement.

Image: Old Age Pension plans Cabinet (image: NOS.nl)
This can mean:
- Working longer, for the youngest generation even beyond the age of 71.
- Or bridging a period with own funds or pension.
