Dismissal Due to Reorganization
If a company is experiencing economic difficulties, you, as an employee, may face dismissal due to reorganization. When a reorganization occurs for economic reasons, an employer is permitted to lay off employees. However, this is not a straightforward process. Your employer must adhere to a set of fair guidelines before they can legally dismiss you due to reorganization. If you are facing dismissal during a reorganization, it’s important to know what to look out for and what steps you can take if you believe your dismissal is unjustified.
Reorganizing for Economic Reasons
Dismissal due to reorganization is permissible only if the reorganization is for economic reasons. This typically indicates that the company is in a severe financial predicament. However, it could also mean that changes in technology or the divestiture of certain business units necessitate a reduced workforce. A reorganization for economic reasons is allowed if it can be proven that the company can survive only through reorganization. In this case, reorganization becomes the sole solution to prevent bankruptcy and preserve the remaining positions.
The Consequences of a Reorganization
A reorganization doesn’t always lead to layoffs. Alternatives like decreased working hours, role shifts, or moving to another company branch can be discussed between employees and employers. Your employer might also assist in securing a new job, potentially preventing termination. However, if dismissal is unavoidable, the employer is bound to follow a set procedure. This includes laying off temporary staff and those on loan before considering permanent employees for termination. The employer must not make arbitrary layoff decisions; they are obliged to adhere to the “reflection principle.”
Which Employees Are Laid Off?
The reflection principle is a selection process used to decide the layoff order during reorganization. The UWV, where your employer applies for dismissal, ensures adherence to this principle. Employees are categorized into five age groups per role, and in each group, the last hired is first laid off. The layoffs in each age category must preserve the company’s pre-layoff age distribution.
Deviating from the Reflection Principle
Generally, an employer must follow the reflection principle, barring exceptions. It’s inapplicable if a job category is completely removed or if an employee is deemed indispensable. Also, pregnant employees or those on extended sick leave are protected against dismissal. If laid off due to reorganization, verify that your employer followed the reflection principle. Any concerns can be taken up with the UWV. Employers also need to show the UWV their efforts in reassigning or retraining staff to avert layoffs.
Your Rights and Objecting to Dismissal
While dodging termination due to reorganization is tough, employees retain rights like severance pay or retraining allowances. For extensive layoffs (over twenty employees), employers must create a Social Plan. Disagreeing with your dismissal allows you to appeal to the UWV within two weeks of your employer’s dismissal application. The process is intricate, and employers must comply with numerous regulations.
Seeking Legal Help
Challenging a dismissal is a nuanced process. If presented with a settlement agreement for mutual dismissal, it’s advisable to consult with a lawyer. We are ready to explore your options together. Contact us directly for more information about how we can assist you.