Position Eliminated in a Reorganization

What does this mean for you?

If your position is being eliminated due to a reorganization, this does not automatically mean you are dismissed. Your employer must follow a careful process before the employment can actually be terminated.

First, your employer must demonstrate that your position or role is genuinely being eliminated and that it is not a cosmetic change. If your tasks are continued by others under a different job title, this may constitute a sham reorganization. UWV scrutinizes this critically when assessing a dismissal application.

Where applicable, the reflection principle (afspiegelingsbeginsel) must be correctly applied. When multiple employees hold interchangeable positions, the reflection principle determines who is selected for dismissal. Incorrect application is one of the most common reasons for UWV to reject dismissal applications.

Additionally, your employer is obligated to investigate whether you can be redeployed to another suitable position within the organization or the group. A suitable position is one that matches your education, experience and capabilities, including positions attainable after a short orientation period. Only if redeployment is not possible can the employer terminate the employment.

Your rights when declared redundant

Verification that the reflection principle is correctly applied
Redeployment efforts by your employer
At minimum the statutory transition payment
Reasonable notice period
Right to legal advice (often at employer's expense)
14-day cooling-off period after signing a VSO
Right to defend yourself in a UWV procedure
Advisory rights of the works council

What we check

When your position is eliminated due to a reorganization, we systematically verify whether the employer has met all legal requirements. Errors on these points strengthen your negotiating position.

Is your position genuinely eliminated?

Sometimes a position is eliminated on paper, but the tasks return under a different name or are distributed among other employees. If your tasks are continued by others, this may constitute a sham reorganization. UWV assesses whether the position has genuinely been eliminated and whether a new position has been created that closely resembles your old one.

Reflection principle

Where applicable, the reflection principle determines which employees in interchangeable positions are selected for dismissal. The employer divides employees into five age groups and applies the last-in-first-out principle within each group. Errors in the reflection principle — such as incorrect classification of interchangeable positions — can affect the validity of the dismissal.

Redeployment opportunities

Your employer must demonstrably have investigated whether suitable positions are available. This applies to the entire organization, including other locations and group companies. The employer must proactively search and cannot simply claim there are no vacancies. Future vacancies expected within a reasonable timeframe must also be considered.

Economic substantiation

The employer must demonstrate that eliminating positions is necessary for efficient business operations. A vague reference to 'reorganization' is insufficient. UWV assesses whether the economic necessity is properly substantiated and whether the elimination of your specific position is related to it.

The two dismissal routes

Settlement agreement

In many reorganizations, the employer offers a settlement agreement (vaststellingsovereenkomst or VSO). This is a mutual agreement to end the employment relationship. You are not obligated to sign a VSO.

A settlement agreement offers opportunities for negotiation. The severance, notice period, garden leave, non-compete clause, bonus and other conditions are all negotiable. After signing, you have a 14-day statutory cooling-off period.

It is essential that the VSO is correctly drafted to protect your WW (unemployment benefit) rights. The agreement must show that the initiative for termination came from the employer.

UWV procedure

If you do not agree with the offered settlement agreement, the employer can apply to UWV for a dismissal permit. You then have the opportunity to submit a written defense.

UWV assesses whether the economic necessity is demonstrated, whether the reflection principle is correctly applied and whether the employer has made sufficient redeployment efforts. If UWV rejects the application, the employer can turn to the subdistrict court within two months.

After a UWV dismissal, you can ask the subdistrict court within two months to annul the dismissal or award additional compensation. The UWV route therefore provides you with additional protection and options.

More than just the transition payment

The statutory transition payment — one-third of a gross monthly salary per year of service — is the minimum you are entitled to when dismissed by the employer. In practice, there is often room for a higher payment during reorganizations, depending on the circumstances.

Factors that increase negotiating room include: errors in the reflection principle or redeployment efforts, procedural risk for the employer, your age and years of service, your position in the labor market and the existence of a social plan.

Beyond the financial compensation, there are more subjects that can be negotiated: notice period with garden leave, outplacement, non-compete clause, bonus, holiday days, reference letter and legal costs contribution. The total value of the departure arrangement is determined by the full package of agreements.

ReorgLegal assesses your complete situation: the reorganization decision, the selection, the redeployment efforts and the proposed departure package. Based on this, we determine what negotiating room exists and what a reasonable outcome would be in your situation.

Practical steps you can take now

Ask your employer for a written explanation of the reorganization and why your position specifically is being eliminated
Ask for insight into the application of the reflection principle
Ask what redeployment efforts have been made and which positions were investigated
Keep all correspondence, meeting notes and documents you receive
Do not sign any documents without legal advice
Contact a legal professional before responding to the employer's offer

The sooner you seek legal advice, the more options there are to strengthen your position. After signing a settlement agreement, negotiating room is limited to the 14-day cooling-off period.

Frequently asked questions

Do I have to accept a VSO?
No. You can reject the offer. Your employer must then apply to UWV for a dismissal permit, which provides you with additional protection and costs the employer time and money.

Can I demand another position?
You cannot force this, but your employer is obligated to actively search for suitable redeployment opportunities. If the employer fails to do so, this can affect the validity of the dismissal.

What if I am close to retirement?
Your age and position in the labor market are factors that can influence the level of severance. An older employee with limited labor market prospects typically has a stronger negotiating position.

Is there a social plan?
In larger reorganizations, a social plan is often drawn up with additional arrangements beyond statutory rights. Check whether a social plan applies to your situation and whether the conditions are correctly applied. Many social plans include a hardship clause for employees who are disproportionately affected.

Your position has been eliminated in a reorganization