A commercial dismissal is when you have to be dismissed by your employer due to financial difficulties within the company. Many companies end up in financial difficulties every year. The first step is always to cut back on other things. Unfortunately, this is not always enough for the company to keep afloat and then savings will have to be made on personnel costs. The employer will then have to let go of one or more employees.
Draw up a settlement agreement
When personnel have to be dismissed due to financial difficulties at the company, the employer can try to draw up a settlement agreement together with the employees concerned. This includes agreements regarding dismissal. If this succeeds, it can be considered a dismissal by mutual consent, eliminating the need for time-consuming and costly dismissal proceedings. The settlement agreement can only be drawn up if the employer and the employee jointly agree on the agreements stated in it. Negotiations can of course be done from both sides.
Various forms of economic dismissal
There are various forms of economic dismissal. If a company has to lay off personnel due to financial difficulties, then this is a commercial dismissal. However, there is also a commercial dismissal when the employer has to deal with work reduction, technological changes, a company relocation, the loss of the wage subsidy and organizational changes. If these matters result in a dismissal, then it is also a commercial dismissal. Finally, there is talk of a commercial dismissal when the business activities are terminated.
Economic dismissal when you are ill
If your employer wants to fire you while you are on sickness benefit, a permit must be requested from the UWV for this economic dismissal. This dismissal permit is not simply issued by the UWV. The employer is required to follow the correct order of dismissal, to provide the company’s financial records, to prove job reductions and to demonstrate that there are no opportunities for you to continue working at the company , for example in another position. If your employer complies with this properly and can actually submit everything, the UWV can issue the dismissal permit and the employer may fire you.
To file a defense against the decision of the UWV
As an employee you can of course disagree with this decision of the UWV. In that case you have the right to file a defense. Is the dismissal permit rejected by the UWV? Then the employer has the right to object to this decision. If, in this case, a party wishes to appeal against the decision of the UWV, this must be done before the Subdistrict Court. In that case, a lengthy process must be taken into account, which of course also costs money. Partly for this reason, the employer will always try to draw up a settlement agreement with the employee. Only when this does not work will it be considered starting a procedure for dismissal at the UWV or the subdistrict court.
Do you need legal advice?
It is very annoying when you have to deal with an economic dismissal. You can then draw up a settlement agreement with your employer in which you can make proper arrangements, but you can also go through a dismissal procedure. In both cases, it is sensible to obtain legal advice, especially since many requirements are imposed on the commercial dismissal. You can contact us without obligation if you need legal advice.