Our Amsterdam redundancy lawyers in The Netherlands can advise you when an employee’s role is no longer required to be performed in the business due to the changing circumstances of the employer, like business restructures.
Redundancy pay according to Dutch Employment Law
If an employee has been made redundant, he or she is entitled to redundancy pay according to Dutch Employment Law (also known as severance pay or transitional fee). Redundancy pay is calculated based upon your age, your monthly earnings and how long you have been employed. Some employers may offer more generous packages in some situations.
Whether you’re at risk of redundancy, contact our Dutch redundancy lawyers based in Amsterdam and we’ll support you through the process and represent you with any action against your employer.
Settlement agreement or temination agreement
If you have been offered a settlement agreement, our redundancy lawyers can advise you on the terms of that settlement agreement and seek an increase in the amount or more favourable terms. Our Amsterdam redundancy solicitors have significant experience in this area and we have represented many employees who are facing redundancy or who have been made redundant.
Our Dutch employment law specialists can assist you with settlement agreements by:
- Advising employees whether we believe a better settlement could be achieved
- Reviewing settlement agreements offered by an employer
- Representing emloyees during settlement negotiations
Employer covers the cost of our legal advice
Choosing an experienced and approachable Dutch employment law team for advice on your redundancy situation is important. In many cases, your employer may cover the cost of our legal advice.
Permission from UWV to terminate the employment contract
An employer can submit an application for dismissal to the Employee Insurance Agency (the UWV) in order to terminate the employment contract if there are reasonable grounds, like business economic circumstances, that lead to the loss of jobs (article 7:669 paragraph 3 subsection a Dutch Civil Code (BW). There must be no possibility of reassigning the employee to another suitable position within a reasonable period of time, with or without the help of training.
The employer will also have to demonstrate that the decision underlying the loss of jobs is necessary in the interest of efficient business operations.
Business reasons may be: poor financial situation, work reduction, organizational changes, technological changes or termination of business activities.
Principle of reflection
In all this, the principle of reflection applies. For each age group (including payroll employees), the employer must first nominate the employee with the shortest employment contract for dismissal. The employer first dismisses hired personnel such as temporary workers and freelancers. Further, the following employees are dismissed: AOW beneficiaries; on-call workers; employees working on a temporary employment contract.
In the reflection principle, employees with similar (“interchangeable”) jobs are divided into age groups. Within each age group it is examined who was last hired.
If you are not satisfied with your employer’s decision, then you can proceed to the cantonal court. It is recommended that you speak to an experienced employment lawyer in Amsterdam who can provide useful legal advice to you at this time.
Many employers however prefer a settlement agreement instead of dismissal proceedings in case of redundancy.
Contact our Amsterdam Redundancy Lawyer for Redundancy Legal Advice
If you have any questions relating to redundancy or are facing being made redundant by your employer, please contact our Dutch expert employment law solicitors on 0031205221999.