Losing your job due to a reorganisation in the Netherlands: What expats need to know

If you’re an international professional working in the Netherlands, you may be faced with your position becoming redundant because of a company reorganisation. Understanding your rights can make a significant difference.

When can an employer terminate your contract?

Under Dutch law, your employer may secure permission from the labour authorities (UWV) to give notice on the grounds of a reorganisation if they can show that they have genuinely tried to find you another suitable role within the organisation (worldwide).

What does “reassignment” actually mean?

Your employer must look seriously at whether you could stay in the company, for example, by transferring you to: 

• Existing vacancies
• Upcoming positions that will open within a reasonable timeframe
• Jobs currently filled by temporary employees or external contractors (unless their work is truly temporary) 

If your employer is part of an international group, they must also consider opportunities in other group companies, which include those abroad.

Plus, they cannot simply send you a link to an internal job portal and leave the rest to you; they have to investigate and substantiate what roles exist and whether you could reasonably fill them. 

Which employees will be let go first?

Before permanent employees can be dismissed for economic reasons, the employer must first terminate the contracts of the following people:

• Temporary or fixed-term employees (by not renewing the fixed-term contract)
• On-call workers
• Temporary agency workers
• Employees who have a right to a state pension 

Only after these groups have been addressed can permanent staff be let go. This is part of the strict Dutch system designed to ensure fairness and prevent arbitrary dismissal.

Being let go? Get advice from Mr. Berendsen Advocaten

What counts as a “suitable” job?

A position is considered suitable if you can perform it based on your education, experience and skills.

It may also be deemed suitable if you can be trained to perform the role within a reasonable period of time. Sometimes a lower-level role may also be considered suitable, depending on your circumstances. 

Training is part of the employer's obligation, though this obligation is not unlimited. What is “reasonable” depends on factors such as cost, duration, and the company's financial health.

Employers are also expected to anticipate changes in their workforce and support employees in staying employable.

Priority for internal vacancies

If you are at risk of redundancy, you generally get priority over external candidates for suitable vacancies. When roles disappear but reappear in a revised form (common in reorganisations), the employer cannot simply choose who receives the new jobs.

Dutch law requires the use of the reflection principle, a strict method for determining which employees must be offered the position first. It’s not enough that parts of the job look similar; it must truly be a continuation of the previous work.

How long must the employer try to reassign you?

Reassignment must be possible within the statutory notice period (typically 1–4 months). For employees with disabilities, this period is extended to 26 weeks.

When applying for dismissal permission, the employer must show the UWV that reassignment within this timeframe is not realistic.

The role of a social plan

In larger reorganisations, employers often introduce a social plan, negotiated with representatives of the employees, such as a trade union or the works council.

A social plan aims to mitigate the financial and career consequences for the affected employees and therefore contains agreements on, among other things, the amount of severance pay, further training for the affected employees, and job-to-job guidance.

It is not mandatory for an employee to accept the terms of a social plan. Before you agree to a severance deal based on a social plan, you must consider whether its benefits outweigh those of continuing your work and awaiting the end of the UWV proceedings.

Offered a settlement agreement? Don’t sign too quickly!

Many expats feel pressured to sign a settlement agreement simply to “get it over with”. But Dutch employment law contains specific rules that often surprise international employees.

Signing too quickly may cost you significant rights or financial benefits; therefore, it’s smart to always ask advice from an experienced employment lawyer.