What are my rights in the event of a reorganisation?

In the event of a reorganisation, your employer cannot simply dismiss you. You are entitled to a fair procedure, a dismissal permit from the UWV or termination by the court, and in most cases a transition payment. Your rights are enshrined in law and your employer must comply with them.

Last checked: March 2026. Legal information is subject to change — always check the current legislation at wetten.nl.

What does the law say?

A reorganisation means that your employer is cutting jobs. This may be due to financial difficulties, a merger or a change in the business. But even if the company is struggling, that does not mean you can simply be made redundant.

The rules on dismissal during a reorganisation are set out in the Civil Code and in the Act on the Allocation of Labour through Intermediaries. The most important law here is the Work and Security Act, which significantly changed the redundancy rules in 2015. The rules are now largely set out in Article 7:669 of the Civil Code (check this article on wetten.nl for the most up-to-date version). It specifies when an employer may terminate an employment contract on commercial grounds.

In the event of a reorganisation, your employer has two official routes to terminate your contract:

Via the UWV: The employer applies for a dismissal permit. The UWV assesses whether the dismissal is justified.
Via the subdistrict court: The employer asks the court to terminate your contract.

In both cases, your employer must demonstrate that there is a genuine business necessity. This is not a mere formality. The UWV or the court will scrutinise the case closely.

In addition, the principle of proportionality applies. This is set out in the UWV’s regulations and the Redundancy Decree. This principle means that your employer cannot simply choose who has to go. The employer divides all employees into age groups within a job category. Then, for each group, it is determined who is made redundant first — namely, the person with the shortest length of service. This prevents an employer from dismissing only older or more expensive employees.

Have you worked for more than two years? If so, you are entitled to a transition payment upon dismissal. This is a sum of money as compensation for the loss of your job. The amount depends on your salary and the number of years you were employed. The statutory provisions for the transition payment are set out in Article 7:673 of the Dutch Civil Code (check this article on wetten.nl for the most up-to-date version).

When does this apply to you?

The redundancy rules in the event of a reorganisation apply to you if you have an employment contract — whether permanent or temporary. You are therefore protected as soon as there is a genuine employment relationship with your employer.

Are you self-employed or do you work through a temporary employment agency? Then the rules are different. As a self-employed person, you do not have an employment contract and are not covered by employment law. As a temporary worker, you do have rights, but these are administered through the temporary employment agency.

Protection against dismissal is particularly strong if you find yourself in one of the following situations:

You are ill: In principle, your employer may not dismiss you during the first two years of illness. This is known as the prohibition on dismissal during illness.
You are pregnant or on maternity leave: A prohibition on dismissal also applies in this case.
You are a member of the works council (OR): Works council members have extra protection against dismissal.

Suppose: your employer announces that the department is being closed down. You have been working there for eight years. In that case, your employer needs a redundancy permit from the UWV. The UWV checks whether your role is genuinely being made redundant, whether there is no other position for you within the company (obligation to redeploy) and whether the principle of proportionality has been correctly applied.

That obligation to redeploy is important. Your employer is obliged to check whether there is another suitable role for you — even after retraining. Only if that is truly not possible may dismissal follow. This is set out in Article 7:669 of the Dutch Civil Code (check this article on wetten.nl for the most up-to-date version).

Have you worked for less than two years? In that case, you are not entitled to a transition payment, but the dismissal procedure still applies. Your employer must still follow the correct procedure.

Step-by-step guide — what can you do now?

Read the notice carefully. Has your employer sent an official document? Keep everything. Note dates, job titles and reasons.
Ask for a written explanation. Your employer must be able to substantiate the business-related reasons. Request this in writing.
Check whether the proportionality principle has been applied correctly. Ask your employer how the classification was made. Check whether colleagues with shorter service are in the same age group.
Check the obligation to redeploy. Are there other roles within the company that you could fulfil? Actively ask about this.
Calculate your transition allowance. Use the calculation tool on uwv.nl to get an indication of the amount you are entitled to.
Do not simply sign a settlement agreement. Your employer may offer you a settlement agreement (VSO) to settle the dismissal out of court. Always have this checked by a lawyer or trade union before you sign.
Seek legal advice. Consult an employment lawyer, your trade union or your legal expenses insurer. Especially if you have doubts about the legality of the dismissal.

Common mistakes

Signing without thinking, under pressure. Many people sign a settlement agreement without reading it properly. Once signed, it is very difficult to reverse. Always take time to think it over — the law gives you fourteen days to revoke a signed VSO.
Assuming that dismissal due to reorganisation is automatically valid. Your employer must always follow the correct procedure. If they do not, the dismissal may be void or voidable.
Forgetting to check whether you are ill on the date of dismissal. Are you ill? Then a prohibition on dismissal applies and your employer cannot simply dismiss you.
Failing to respond to the UWV procedure. If your employer submits a dismissal application to the UWV, you will be given the opportunity to put forward a defence. Make sure you do so. Don’t let that opportunity slip by.
Raising the alarm too late. There are time limits for challenging a dismissal. If you wait too long, you may lose your rights.

Frequently asked questions

Am I always entitled to a transition payment in the event of a reorganisation?

Yes, if you have been employed for two years or more and your contract ends due to dismissal or non-renewal. The amount depends on your salary and length of service. Have you worked for less than two years? Then you have no legal right to a transition payment, unless this is arranged differently in your collective agreement or contract.

Can my employer choose who has to leave during a reorganisation?

No. Your employer must apply the proportionality principle. Employees are divided into age groups by job category. Within each group, the person with the shortest length of service is the first to be made redundant. This prevents your employer from being selective.

What is a settlement agreement and do I have to sign it?

A settlement agreement (VSO) is a written agreement between you and your employer regarding the termination of your contract. You are never obliged to sign it. Always have the agreement checked by a lawyer, trade union or legal expenses insurer. Please also note: if you sign, you have a fourteen-day cooling-off period to withdraw your signature.

Can I challenge my dismissal in the event of a reorganisation?

Yes, you can. If your employer has not followed the procedure correctly, has misapplied the proportionality principle or has ignored the obligation to redeploy you, you can take the matter to court. Do this in good time — there are statutory time limits. An employment lawyer or trade union can help you with this.

What if my employer offers me a different role as part of the reorganisation?

Your employer is obliged to check whether there is a suitable role for you, even after retraining. If you refuse a suitable role without good reason, this may affect your severance pay or benefits. If the role offered is genuinely unsuitable, you do not have to accept it. What constitutes ‘suitable’ depends on your education, experience and personal circumstances.

Relevant legal provisions

Section 7:669 of the Dutch Civil Code — grounds for termination of an employment contract (check this section on wetten.nl for the most up-to-date version)
Section 7:673 of the Dutch Civil Code — transition payment (check this section on wetten.nl for the most up-to-date version)
Article 7:670 of the Dutch Civil Code — prohibitions on termination, including illness and pregnancy (check this article on wetten.nl for the most up-to-date version)
Article 7:681 of the Dutch Civil Code — voidability of termination (check this article on wetten.nl for the most up-to-date version)
See the Civil Code for the exact provisions on redeployment and the principle of proportional representation
See the UWV’s Implementation Rules on dismissal for commercial reasons for the principle of proportional representation (available via uwv.nl)

Rights in reorganisation: what can your employer do and not do?