A reorganisation can have major consequences for employees. Sometimes positions disappear, departments are merged, or a relocation takes place. During a reorganisation, dismissal may be unavoidable. However, as an employee you have rights, and employers are often required to offer a social plan.
In this article, we explain how dismissal during a reorganisation works, what a social plan entails, and how you can get the most out of such an arrangement.
What Is Dismissal Due to Reorganisation?
Dismissal due to reorganisation falls under economic dismissal. This means the employer is dismissing employees because of:
Reduction in work.
Cost savings.
Organisational changes.
Business closure or relocation.
In this case, the employer must apply for permission from the UWV (Employee Insurance Agency) and apply the reflection principle (afspiegelingsbeginsel).
What Is a Social Plan?
A social plan is an arrangement containing agreements about the consequences of the reorganisation for employees. The plan is often drawn up in consultation with the works council or trade unions.
A social plan may contain agreements on:
Severance payments (on top of the transition payment).
Outplacement guidance.
Training or retraining.
Assistance with job applications.
Exemption from work with continued salary.
Is a Social Plan Mandatory?
A social plan is not legally mandatory, but in practice it is often used to ensure the reorganisation runs smoothly and to prevent conflicts.
In large enterprises and with collective dismissals, a social plan is customary.
In smaller reorganisations, individual negotiations sometimes take place.
Severance Payment During Reorganisation
In the event of dismissal due to reorganisation, you are entitled to at least the transition payment.
The social plan often provides a higher payment or another favourable arrangement.
Example:
Statutory transition payment = EUR 7,000.
Social plan offers 1.5 times the transition payment.
Total payment = EUR 10,500.
Employee Rights and Choices
As an employee, you can choose:
To agree to the social plan.
Not to agree and negotiate individually (this can sometimes yield more).
A lawyer can assess whether the social plan is reasonable or whether there is room for additional negotiations.
Practical Examples
Example 1: A large healthcare institution had to reorganise. The social plan offered employees 2 additional monthly salaries on top of the transition payment.
Example 2: An employee who did not agree to the social plan managed to negotiate a higher payment individually.
Example 3: A company without a social plan offered only the transition payment. The court ruled this was sufficient, but the employee could have negotiated better through a settlement agreement.
Checklist: Dismissal and Social Plan
Check whether the employer correctly applies the reflection principle.
Review whether the social plan is better than the transition payment.
Check whether there are agreements on outplacement or training.
Consider whether individual negotiation is more advantageous.
Always have a lawyer review the offer before you sign.
Common Mistakes
Assuming the social plan is always the only option.
Signing too quickly without comparing it to your own calculation.
Not considering the consequences for unemployment benefits or pension.
Not seeking legal assistance.
Frequently Asked Questions (FAQ)
1. Am I obliged to agree to a social plan?
No, you can also negotiate individually.
2. Will I always receive a payment during a reorganisation?
Yes, at least the transition payment.
3. What is the advantage of a social plan?
Collective agreements provide certainty and often better terms.
4. Can I get more than what the social plan states?
Yes, through individual negotiations or legal proceedings.
5. Does a lawyer help with dismissal during reorganisation?
Yes, a lawyer can calculate what you are minimally entitled to and negotiate a higher payment.
Why Arslan Advocaten?
Specialised in reorganisation and dismissal
Experienced in negotiating social plans and settlement agreements
Regularly achieve higher payments for clients
Verify that dismissal rules have been correctly applied
Conclusion
Dismissal during a reorganisation is often impactful, but through a social plan you can claim favourable arrangements. Nevertheless, it is important to always critically assess whether the plan or proposal is truly the best option for you. With legal assistance, you can often achieve a better arrangement or higher payment.