Reorganisations come in different shapes and sizes. It may be due to a poor (or worsening) financial situation, work cuts, organisational changes, a company move, or a company closure.
Layoffs caused by business-economic circumstances require permission from the employee insurance agency (UWV). The UWV will only grant permission if the layoff request is properly justified. The layoff request must also meet certain conditions around things like the order of layoffs.
If the reorganisation involves a layoff of 20 or more employees within three months, the employer is required to give advance notice of a layoff to the UWV, and the trade unions concerned must be consulted. The works council may also have advisory rights during a reorganisation.
If the employer's organisation falls under a collective labour agreement (CLA), it's also important to check whether it contains additional obligations around reorganisation. For instance, the CLA may require a social plan to be drafted or may stipulate consultation with the trade unions.
In practice, the option of terminating individual employment contracts by mutual agreement is often discussed with employees first before a layoff request is submitted to the UWV.
Good planning and proper timing are essential in reorganisations. For example, the ban on giving notice during temporary incapacity for work and any additional obligations around employee participation should be considered. How to communicate with employees about the reorganisation is also crucial.
The specialists at L&A Advocaten regularly provide advice on reorganisations and offer practical guidance to employers in the reorganisation process.