Bankruptcy brings many changes, not only for the employer but also for you as an employee. Often, there's a reorganization or a restart. But what exactly does this entail, and what consequences does it have for your rights and obligations? This article outlines the most important aspects.
What is a restart?
A restart means giving a bankrupt company a new lease on life. This happens when another company (or sometimes an investor) acquires parts of the bankrupt organization, such as its assets, existing contracts, or even employees. The goal of a restart is to continue certain business activities under new ownership.
While this often offers hope, it's important to know that your employment contract can be terminated by the bankruptcy trustee. This means you won't automatically keep your job in a restart, unless the new owner explicitly agrees to this with you.
This is different, however, in the case of a transfer of business, when there is a restart prepared before bankruptcy. In that case, all employees, including their employment conditions, transfer to the new company.
Takeover of personnel in the event of a restart
In a restart that hasn't been properly prepared, not all employees are always retained. The new owner may choose to hire only some of the staff.
Are you being taken over? Then you'll get a new contract, often with different terms. If you had a permanent contract, your new employer is not obligated to offer you a new one unless you've already been employed on a permanent basis for three years.
Your new employer also has the option to offer new employment conditions. If you're going to be doing the same work with your new employer, make sure there's no probationary period in your contract.
Risks and points of attention during a reorganization
Even without bankruptcy, a reorganization can have consequences. During a reorganization, a company adjusts its structure to cut costs or operate more efficiently. This can lead to layoffs or changes to employment conditions.
Important issues:
- Social plan: In many cases, a social plan is drawn up with agreements on severance payments, guidance to new work and other arrangements.
- Reflection principle: In the case of dismissals for economic reasons, the reflection principle must be applied. This ensures that dismissals are distributed fairly across different age groups. We previously shared an article about this. You will find it here.
- Rights upon dismissal: You may be entitled to a transition payment and guidance to a new job through an outplacement program.
Note: Stay proactive. Talk to your employer, works council, or other employee representative body to understand your position. Ask a union for help if you're unsure about your rights.
How do De Unie can help you
In the event of bankruptcy, restart or reorganization, it is important that you are well informed about your rights. De Unie helps you with this by:
- Legal advice: Our specialists will review your contract and terms and conditions with you.
- Negotiation support: We help you get a fair settlement, such as a good severance payment.
- Information and guidance: Whether it concerns legal procedures or practical steps towards a new job, we are here for you.
Do you have any questions? Please contact us at 0345 851 963 or sc@unie.nl on weekdays between 8:30 AM and 17:00 PM. Or become a member now and take advantage of our extensive services.
