EMPLOYMENT & REORGANISATION

Jobs may be cut because a company terminates activities. Or there may be other economic conditions on grounds of which an employer considers reorganisation and cuts in staff.

Whereas employers have enough freedom to reorganise their company and the UWV employee insurance agency and the court will never occupy the chair of the entrepreneur, there are rules for dismissal on grounds of reorganisation that must be properly complied with. There are for instance unambiguous proportionality principles for determining personnel that would qualify for dismissal.

Employers often agree on a social plan with unions or companies’ staff councils on regulating the effects of reorganisations. Employers may also draw up and apply a social plan unilaterally. In that case the applicable, normal rules will remain in effect all the same.

Although dismissal on grounds of reorganisation starts at the UWV employee insurance agency, employers who intend to reorganise will usually propose a settlement agreement to prevent court proceedings. It is important that a settlement agreement is assessed by a specialist first, to prevent ‘WW’ unemployment benefit rights being compromised for instance. As most settlement agreements include stipulations about lawyer’s fees to be paid by the employer there is, in fact, no reason for not calling in legal assistance.

So do not hesitate to go for an affordable specialist, also in case of dismissal on grounds of reorganisation, and make an appointment for a free preliminary interview when dismissal looms on the horizon!