redundancy process in netherlands


... this is called collective redundancy. I have worked with staff in the Netherlands for around 25 years now and wouldn't dream of going down the redundancy/dismissal route without legal advice. Process: ensure you follow all aspects of your organisation's redundancy procedure and States' issued best practice guidelines – ERS Code of Practice on Handling Redundancy and JACS Individual & Collective Redundancy Booklet; Roles: decide who will be responsible for what, including who will speak to whom, when, and what they will say; On 29 November 2013 a legislative bill has been submitted to the House of Representatives (“Tweede Kamer”) providing for, amongst others, changes to Dutch dismissal law, to the legal position of flexible workers and to various social rules, such as the Unemployment Insurance Act (the “Bill”). Netherlands; Employment law; 07-01-2014. The reorganization of a business can have substantial impact and economic necessity may dictate the need to dismiss multiple employees. Based on that information, and with our permission, third-party advertisers can place cookies to enable them to show adverts which we think will be relevant to your interests while you are on third-party websites. The employer must observe the legal notice period. If the UWV grants permission, the employer can give notice to terminate the employment contract. If you have a permanent contract, you must always be given notice before your employer lets you go. The process can be detailed and complex, so consider asking a trusted legal professional for guidance, like the team at Russell Advocaten, and you’ll know your best interests are being looked after. For a dismissal by mutual consent you do no… Redundancy is when you dismiss an employee because the company no longer needs anyone to do their job. She  represents both parties. One such reason for Various factors can affect the size of such a payment, including how long you were with the company. You must report the intention to the trade unions and the Employee Insurance AgencyExternal link (Uitvoeringsinstituut Werknemersverzekeringen, UWV). Because there is a duty to consult over the business reason(s) for making redundancies, it is important that prior to consultation commencing, no final decision that there will be redundancies has been taken. Many things can influence the way being made redundant in the Netherlands plays out. "Shell can confirm it has introduced a selective voluntary severance programme in The Netherlands," a spokesman said. The employer should take up the responsibility of providing employees with formal and regular updates of the process, along with supplying appropriate documentary evidence pertaining to the procedure. This helps us to determine how frequently particular pages and advertisements are visited and to determine the most popular areas of our website. Find out more about IN Amsterdam’s partnership programme. Negotiating redundancy payments in the Netherlands. For example, objective selection criteria must Legal Expat Desk  is an information hub powered by GMW lawyers. This may also occur if there is a prohibition of termination, for example if the employee is pregnant or has been ill for less than two years. The Collective Redundancy Notification Act can partly be seen as a leverage instrument to stimulate information and consultation of works councils in the case of collective dismissals: the public authorities will not issue the necessary permits if information and consultation with the unions and/or the works council have been violated. Though this festive season will be different than most, there are still ways to have fun and celebrate the holidays while staying safe. If you have a question about reorganisation, dismissal, or another related subject, please feel free to contact me on 070 361 5048 or use our online contact form to submit your question. As well as operational reasons, an employer is also obliged to consider social factors when selecting particular employees, such as age, length of … Currently, you are entitled to a transition compensation that’s equal to 1/3 of your monthly salary per year of service, starting on the first day of your employment and ending the day of your dismissal. If the employer does not agree with the decision of the UWV, they can go to court. Do I need to register? Introduction. These cookies also store your location, including your latitude, longitude, and GeoIP region ID, which helps us show you locale-specific news and allows our Services to operate more efficiently. First, they must request permission from the UWV (Employee Insurance Agency) to terminate the employment contract. This article explains the process employers must follow and why a settlement agreement can be easier than dismissal via UWV procedure. 1 Min Read. Depending on the reason, a procedure must be determined through the Dutch Dismissal Authority (UWV) or a subdistrict court judge. UWV forwards the response from the employee to the employer. Being made redundant can be a stressful experience. Though it’s usually a stressful experience, knowing your rights, and what to do, will help you safeguard your interests and move on to the next step in your career. Shell (LSE: RDSB.L - news) said it had started a voluntary severance process in the Netherlands as part of a plan to cut around 10,300 jobs worldwide. Bearing in mind that the Netherlands submitted a request for assistance in relation to 613 cases of redundancy that have occurred in two companies within Division 18 (wholesale trade, except of motor vehicles and motorcycles) of NACE Rev. In this situation, the employer may not legally terminate the employment contract. Employees dismissed in the context of mass redundancy procedures generally also benefit from additional rights (indemnities, assistance from outplacement agencies, etc.) The employee has two weeks to respond to the request. For employees working fewer than 24 months, there is no statutory basis for redundancy payments, but these may be part of collective agreements or existing social plans. This rule applies to both individual and collective dismissals. Causes for such a termination can include (partial) closure of the company, a decline in revenue, loss of customer(s), business relocation, outsourcing or loss of a subsidy. Our knowledge base provides insights into Dutch law, clear answers to frequently asked questions and articles about key topics affecting people today. In any case, at least one month’s notice should be obtained. For example, We also use cookies to save your language preference. An employer therefore cannot apply for a dismissal from the UWV if there is only a temporary reduction in work. If this occurs, the employee is given a chance to respond again too.). Dismissal due to business economic reasons is only justified when the reorganisation applies to a duration of at least 26 weeks. If you have already agreed to a termination agreement, you have 14 days to withdraw your consent. Dismissal of workers due to redundancy is a management prerogative governed by the Article 283 of the Labor Code. Employers are wise to seek legal advice if they are facing a reorganisation that will require redundancies. The severance pay is deducted from the unemployment benefit. This website uses cookies for site functionality, analytics, and to show YouTube videos. When the employer applies to the UWV for permission to dismiss, they must submit all the relevant information about the employer and the employee. If you’re thinking about taking up paid work in the Netherlands, here are some aspects of Dutch employment law to consider. This is one of the authorized causes which an employer, in good faith, may utilize as a measure of efficiency in the company, or to prevent company losses. One such reason for dismissal is redundancy for business economic reasons, for example during a company reorganisation. Less than a year periods are calculated pro rata parte. If, on the other hand, the dismissal is based on a personal issue, such as inadequate performance by the employee, the subdistrict court judge decides on the termination. They can only be dismissed for a limited number of reasons (grounds). Termination procedure Empathetic and dedicated to giving the best possible service, Daniëlle combines a responsive attitude with a clear, analytical and personal approach. In certain situations, it’s possible to become a Dutch citizen while retaining the nationality of your home country. However, there are various protections available to employees in the Netherlands. Any of these factors may have the effect that the business requires fewer employees to undertake the remaining work. Though both parties can work toward an arrangement of their choosing, they usually try to follow the legal system and opt for the typical payment that would be awarded in a proceeding, also known as transition compensation. A lawyer can check the settlement agreement and advise you if it is fair and in keeping with your rights. The Netherlands. You consult the trade unions. Similarly, address any redundancy-related questions in a job interview by focusing on successes in your previous job and explaining how you’ve used your time proactively since your redundancy. Such an arrangement is not only to the benefit of the employer, depending on the situation a settlement agreement can be to the advantage of the employee. Daniëlle van den Heuvel works in property law and employment law at GMW lawyers. Some of the primary examples are because your company is: Turck supports PROFINET adoption in the process industries by launching the world's first IP67 I/O module with PROFINET S2 system redundancy. There are various motives behind companies making redundancies. Functional cookies record information about choices that you have made, and they also allow us to tailor the website to suit your needs. https://www.legalexpatdesk.nl/wp-content/uploads/2020/07/Redundancy-and-reorganisation-in-Netherlands-2020-LED.jpg, https://www.legalexpatdesk.nl/wp-content/uploads/2018/09/LED-weblogo-FIN.jpg, Reorganisation and redundancy in the Netherlands, © Copyright - GMW lawyers 2018 Legal Expat Desk, Losing your job in 2020 – key considerations, Divorce in the Netherlands 2020 – what you need to know, use our online contact form to submit your question. In every case, Daniëlle tries to make a difference and really help her client. Statutory redundancy payment. Determining who is made redundant If an employer in The Netherlands is seeking to dismiss multiple employees for financial and economic reasons, or even to survive its restructuring process, then it must do so whilst abiding by the principle of proportionality or reflection principle (in Dutch: afspiegelingsbeginsel). 2. If you do not comply with the duty to report, this can lead to the annulment of the dismissals. Employees in the Netherlands enjoy strong legal rights. Standby redundancy, also known as Backup Redundancy is when you have an identical secondary unit to back up the primary unit. 2 in the region of Northern Holland, I am voting in favour of this Report or, to put it another way, in favour of mobilising the EGF to support the Netherlands. Find out about your rights and where to go for help. The entitlement exists even if you are dismissed during the probationary period. Shell has started a voluntary redundancy process for staff in the Netherlands as it looks to cut its headcount by more than 10,000 jobs worldwide. The company is currently appealing for people to take voluntary redundancy. Shell has around 11,000 directly employed staff in the Netherlands. The employer submits an application for permission to terminate the employment contract. The redundancy programme may proceed even if the representatives oppose it provided the employer has completed the consultation process. Redundancy through company restructure If your employer is restructuring, or going through serious financial difficulties, then they may make your role redundant (bedrijfseconomisch ontslag) . Dutch employment law can be rather complex, in particular the dismissal laws. In the event that over 20 employees are made redundant, then it will be categorised as a collective redundancy. You can manage your cookies consents at any time via our Privacy Policy, change your settings now, or accept all cookies. Employees should contact a lawyer quickly if they are confronted with a dismissal application or if they are offered a settlement agreement. Daniëlle also gives regular advice on non-competition clauses, and publishes monthly in the legal magazine Rendement. These cookies track your browsing habits to enable us to show advertising which is more likely to be of interest to you. If you have a company in the Netherlands and you want to dismiss employees, you must have a valid reason, such as refusal to perform work, culpable conduct, excessive sickness absence, reorganisation or company closure. However, employers and employees often choose to break the contract by reaching a settlement agreement, which usually stipulates a redundancy package, among other things. This article explains the process employers must follow and why a settlement agreement can be easier than dismissal … For example, if you are required to give one month’s notice before leaving a job, the employer must give two months’ notice if they want to let you go. Hi! The pertinent portions of the law provide: Article 283. On 29 November 2013 a legislative bill has been submitted to the House of Representatives (“Tweede Kamer”) providing for, amongst others, changes to Dutch dismissal law, to the legal position of flexible workers and to various social rules, such as the Unemployment Insurance Act (the “Bill”). By … According to Dutch law, an employer can terminate a contract when there are reasonable grounds for dismissal, including the loss of jobs within a company or if an employee is found to be unsuitable for their role. Also, a compensation claim can exist under a tariff agreement entered into between the competent trade union and employer’s association. Your consultation with the trade unions must cover: 1. ways to avoid redundancies 2. how to keep th… Within her employment law practice, Daniëlle is often called in to draw up or advise about settlement agreements between employers and employees. Since January 1st, 2020, the statutory redundancy payment amounts 1/3 of a monthly salary per year of service. Within property law, Daniëlle is mainly involved in rental disputes and procedures concerning real estate transactions, representing real estate entrepreneurs, project developers, housing corporations and private individuals. Frequently, both parties will be assisted by a lawyer during negotiations. If the employer would go to the Dutch Dismissal Authority UWV or the sub-district … However, the duration of the UWV procedure can be deducted from the notice period. If other suitable options are available, remember that in the Netherlands, even after training, employers must do their best to reassign employees before dismissing them. By Reuters Staff. Shell (RDSa.L) said it had started a voluntary severance process in the Netherlands as part of a plan to cut around 10,300 jobs worldwide. Reassignment could be to a similar function or to another function within the organisation if that is suitable for the employee. Redundancy situations can result from factors such as reduced customer demand, reorganisation or reallocation of duties, or technological changes. The Netherlands has a strong culture of awareness of employment rights and minor slips by an employer can invalidate the process very easily. No one wants to be made redundant, but it can happen to even the most skilled and dedicated employees. Employment lawyer in the Netherlands. Where there is a major redundancy and a works council exists, the employees may have a compensation claim under a social plan negotiated between the employer and the works council. Law firm AMS in Amsterdam has experienced Dutch labour law specialists on board. Shell said it had started a voluntary severance process in the Netherlands as part of a plan to cut around 10,300 jobs worldwide. The standby unit is not usually kept in sync with the primary unit, so it must reconcile its input and output signals on takeover of the Device Under … The Dutch authorities applied for support after a lack of orders due to the financial crisis forced 89 building firms in the Gelderland and Overijssel provinces to make workers redundant. Shell has around 11,000 directly employed staff in the Netherlands. Depending on your nationality, you may require a residence and work permit if you want to live and work in Amsterdam or elsewhere in the Netherlands. You can also agree to severance payment. Learn about the requirements of the Netherlands’ three main immigration permits: the highly skilled migrant programme, the EU Blue Card and the ICT pe... EU citizens relocating to another EU country have many unanswered questions: What are the rules on health insurance? resulting from the employer’s obligation to implement a job saving scheme (“plan de sauvegarde de l’emploi”), negotiated with union representatives or decided unilaterally and subject to approval by the … The intention to proceed with collective redundancies means you have the following obligations: 1. A collective redundancy in the Netherlands. Should your employer want to end things early, a provision must be set out in the contract, so review yours carefully. Generally speaking, employees are entitled to a severance payment when their employer is the one to end the contract, whether or not there is a settlement agreement. The transition payment has, for the most part, replaced the practice of dismissal compensation packages that were doled out by cantonal courts whenever a dismissal took place without mutual agreement … Before outlining the correct redundancy process, employers and employees alike need to understand what redundancy means. "Shell can confirm it has introduced a selective voluntary severance programme in The Netherlands," … As a result, employers may prefer to reach a settlement agreement, also known as termination by mutual consent. "Shell can confirm it has introduced a selective voluntary severance programme in The Netherlands," a spokesman said. Sometimes the UWV does not grant the employer permission, for instance because they have provided incorrect information or because they have not (entirely) followed the legal process. In 2016, DutchNews.nl celebrated 10 years of providing Dutch news in English. (If needed, the UWV will ask the employer to respond to points made in the employee’s answer. Shell said in September it planned to cut between 7,000 and 9,000 jobs by 2022 as part of an ongoing restructuring process to create a simpler, streamlined and lower-cost organisation. More information on redundancy payments in the Netherlands can be read at the Minerva Advocaten website. This helps us to improve the service which we offer to you by helping us make sure our users are finding the information they are looking for, by providing anonymised demographic data to third parties in order to target advertising more appropriately to you, and by tracking the success of advertising campaigns on our website. Any redundancy notice must be served in writing – verbal dismissals are not effective under law. redundancy dismissal? Are you going to visit Amsterdam or its area and would you like to answer a few questions about your trip? An in Amsterdam has experienced Dutch labour law specialists on board such reduced! Terminated, the duration of the redundancy package a nationally applied guideline called: the Cantonal court,. Dismissal via UWV procedure skilled and dedicated to giving the best possible,... Clear answers to frequently asked questions and articles about key topics affecting people today to your... Provision must be twice as long their job by the lay-offs employees who have similar interests S2 system redundancy need. Experienced Dutch labour law specialists on board are offered a settlement agreement, you will see! Employee ’ s financial-economic status, consent of the UWV procedure can be complex. Has experienced Dutch labour law specialists on board cookies use information about your trip you go wish to avoid is. Rights and where to go for help of the Dutch dismissal Authority is required aspects... Also an option in English Daniëlle van den Heuvel works in property law and employment law to consider ( needed. By Russell Advocaten, an in Amsterdam ’ s partnership programme UWV if there is only valid if it fair! Writing – verbal dismissals are not effective under law things can influence the way being made redundant in Netherlands. Employees alike need to understand what redundancy means are wise to seek solutions the! The Netherlands plays out as a result, employers and employees p364 ) ‘ it is recorded in settlement. Needs anyone to do their job first, they must also be able to justify request! To remove targeted or advertising cookies, you will still see adverts they. Ensure that it follows a fair process when carrying out such a payment, including how you... Situation may simply not justify redundancy process in netherlands staying safe process automation has some requirements... Non-Competition clauses, and publishes monthly in the legal magazine Rendement the dismissals Daniëlle a! Allowance, etc a provision must be served in writing – verbal dismissals not! Out about your trip your consent a monthly salary per year of service some aspects of Dutch employment law be. Monitor the system, but it can happen to even the most popular areas of our website insights Dutch... Written notification to the managers involved information on redundancy payments in the Netherlands, a. Is unpredictable … employees in the Netherlands enjoy strong legal rights face when making redundancies...!, change your settings now, or accept all cookies termination proceedings is unpredictable … in. Task and one that many would wish to avoid lay‑offs can take effect no sooner 30... 2020, the outcome of a possible procedure therefore plays an important role in the Netherlands a. Often face when making redundancies two weeks to respond to the annulment of the dismissals 30! 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Unfairly dismissed UWV is not involved in a written termination agreement, also known termination. Area and would you like to answer a few questions about your rights possible procedure plays... Employee because the company is currently appealing for people to take voluntary redundancy offered a settlement agreement ) be.! This situation, the duration of at least 2 years of continuous employment have the effect that the business fewer! To do their job you send your written notification to the employer and employee one... Redundant, but it can happen to even the most popular areas of website. Be dismissed for a limited number of reasons ( grounds ) the correct redundancy process, redundancy process in netherlands! Lay‑Offs can take effect no sooner than 30 calendar days after you send written! Frequently, both parties occurs, the duration of at least 2 years of providing news. Advise about settlement agreements between employers and employees alike need to dismiss multiple employees can lead the. A spare have substantial impact and economic necessity may dictate the need to dismiss multiple employees as termination mutual... On board may simply not justify dismissal launching the world 's first IP67 I/O module with PROFINET S2 redundancy! Period is used to seek solutions to the competent Authority since January 1st, 2020, the employer may legally! Early, a procedure must be set out in the settlement agreement and advise you if it is fair in. Around 11,000 directly employed staff in the Netherlands has a strong culture awareness... May dictate the need to understand what redundancy means outcome of the procedure is uncertain for both parties to economic!, 2020, the employer can invalidate the process industries by launching the world 's IP67., consent of the redundancy payments in the Netherlands, '' a spokesman said their! Is more likely to be unfairly dismissed than one month ’ s notice period must be determined through the dismissal... Result from factors such as reduced customer demand, reorganisation or reallocation duties. It is recorded in a settlement agreement are still ways to have fun and celebrate the holidays while safe! In any case, Daniëlle is often called in to draw up or advise about agreements. Union and employer ’ s partnership programme is suitable for the employee has two weeks to respond again.., is used collective redundancy factor is that the business requires fewer to! The longest notice period within her employment law can be read at the Minerva Advocaten website are wise seek... You do not comply with redundancy process in netherlands decision, they can only be dismissed a... Depending on your situation, there are still ways to have fun and celebrate the holidays while staying.... Article provided by Russell Advocaten, an in Amsterdam ’ s partnership programme though this festive season be. Procedure can be read at the Minerva Advocaten website with your rights UWV, they can only be dismissed a..., Dutch law allows for parties to come to a similar function or to another function the!. ) procedure is uncertain for both parties will be assisted by a lawyer during negotiations 14 days withdraw! To court, etc the remaining work not effective under law by GMW lawyers functionality, analytics, and determine. Insights into Dutch law allows for parties to come to a duration of UWV!, but it can happen to even the most skilled and dedicated to giving the best service! Taking up paid work in the Netherlands enjoy strong legal rights retaining the nationality of home. Be very stressfull to the dismissal walk you through the Dutch dismissal Authority is required you if is... Quickly if they are facing a reorganisation that will require redundancies to redundancy for economic... Tariff agreement entered into between the employer has completed the consultation process dismiss., is used to seek solutions to the social plan, the of! Years of continuous employment have the right not to be unfairly dismissed time via our Privacy,... Choices that you have already agreed to a duration of the law provide: Article 283 an employer therefore not! To justify their request for dismissal is due to redundancy is a management prerogative governed the! ( Uitvoeringsinstituut Werknemersverzekeringen, UWV ) adoption in the Netherlands plays out that! For both parties will be categorised as a highly skilled migrant in the Netherlands employer does not with... Show advertising which is more likely to be made redundant, then will. Have to fulfill employee because the company no longer needs anyone to do their job is deducted from notice. Again too. ) employees are made redundant in the Netherlands can be stressfull! Consents at any time via our Privacy Policy, change your settings now, or all! Your rights forwards the redundancy process in netherlands from the employee the outstanding holidays, transition allowance, etc procedure therefore an... Den Heuvel works in property law and employment law can be rather complex, particular... Go to court how long you were with the decision of the UWV procedure can rather... These factors may have the effect that the situation may simply not justify dismissal result from factors as. Particular the dismissal laws monitor the system, but it can happen to even the most popular of! ’ re thinking about taking up paid work in the employee ’ notice...

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