It may be useful or even necessary to reorganise a company. In many cases, this will, unfortunately, also have consequences for the employees.

In the event of a reorganisation, there are countless employment law aspects.
Usually, the participation body (works council, employee representative body or staff meeting) will have to be involved in good time.

If, as a consequence of a reorganisation, multiple jobs become redundant, the employer is not free to choose which employees will be proposed for dismissal. As a general rule, the reflection principle will have to be applied. Per age group, the employee with the shortest employment will have to be proposed for dismissal.

If for economic reasons multiple employees have to be dismissed at the same time, the dismissal order will have to be determined on the basis of the reflection principle. This means that the age structure within this position before and after the redundancies remains the same as much as possible. Per age group, you will have to propose the employee with the shortest employment for dismissal.

If you need to terminate the employment agreements of 20 or more employees as a result of the reorganisation within a period of three months, and these redundancies fall within one working area of the UWV, you will need to send a notification of mass redundancy to the UWV.

You may, within the framework of the reorganisation, be selling the business, or part thereof, in which case there may be a transfer of undertaking. In the event of a transfer of undertaking, the employees will follow their job, they will, therefore, transfer along to the the acquirer of (that part of) the business, while retaining all of their rights and obligations arising from the employment agreement.