Fake Redundancy in the Netherlands: What If Your Employer Hires a Replacement?

Imagine this scenario. It is Friday afternoon. Your manager calls you into a meeting room. The mood is serious. Before you even sit down, you sense that something is wrong. They tell you the company is navigating difficult times. They mention “restructuring” or “strategic realignment.” Then comes the hard news: your position is being eliminated due to redundancy.

They assure you it is nothing personal; it is just business. They might even present a settlement agreement (vaststellingsovereenkomst) right there on the spot. You leave the office with a knot in your stomach, worrying about your income, your career, and—as an expat—your visa status.

But a week later, you see it.

Scrolling through LinkedIn or a job board, you spot a new advertisement posted by your old company. The title looks slightly different, but the description? The responsibilities are identical to what you did every day. The requirements match your skills perfectly.

You realize the painful truth: You have not been made redundant. You have been replaced.

This is a classic example of a sham redundancy. For many international workers in the Netherlands, this feels like a betrayal. But beyond the emotion, there is a legal reality. Under Dutch employment law, this situation often constitutes an unlawful dismissal. If you are thinking, “my employer made my role redundant but posted the same job,” you need to know your rights.

How Fake Redundancies Happen in Dutch Workplaces

Why would a company go through the trouble of faking a redundancy? The answer usually comes down to convenience and cost.

Dutch employment law offers strong protection for employees. An employer cannot simply fire you because of a personality clash or a minor disagreement. Dismissal based on performance requires a lengthy process of file building (dossieropbouw) and improvement plans, which can take six months or longer. Many employers simply do not want to invest that time.

So, some companies look for a shortcut. They use “economic reasons” or “organizational change” as a mask. By claiming your specific role is no longer needed, they try to bypass the strict rules for dismissal. Their goal is usually to get you to sign a settlement agreement quickly. They bank on your fear of unemployment and the pressure of the “search period” for your visa.

However, if the “reorganization” is a sham—for example, they replace a senior expat with a cheaper junior employee, or simply rename the role to hire a friend—this is illegal. It is what we call a sham redundancy expat case.

Legal Indicators of a Sham Redundancy

Employers are often careful with their wording. They won’t say “we are hiring your replacement.” They will say “we are creating a new, dynamic role for the future.” To determine if you have a case, you need to look at the details. In Dutch law, we look at the concept of “interchangeable functions” (uitwisselbare functies).

If you suspect you have been replaced, look closely for these signs:

• The duties match: Compare the new job ad bullet points to your old daily tasks. Is the description 90% the same? If the core tasks are identical, it is likely legally considered the same job.
• Cosmetic title changes: This is a common trick. You were a “Marketing Manager,” now they hire a “Brand Lead.” You were a “Software Engineer,” they want a “Technical Developer.” In Dutch law, the content of the work matters more than the title.
• Salary adjustments: Employers often lower the salary slightly or claim it is a “junior” version of your position. However, if the autonomy and output expectations remain the same, it is not a junior role; it is just a cheaper version of you.
• Timing of the vacancy: Did the ad appear immediately after you left? Or was it posted internally before you were even told about your dismissal? Immediate replacement is a strong signal of bad faith.

If the roles are essentially the same, your employer was legally obligated to offer you that “new” position. If they didn’t, you have strong evidence of unfair play.

Why Expats Are Vulnerable to These Tactics

International workers are often specific targets for these tactics. Why? Because employers assume you are less likely to fight back.

1. Assumption of Ignorance

Employers know you might not be familiar with the Dutch Civil Code or the intricate rules of the UWV (Employee Insurance Agency). They assume you don’t know the difference between a standard transition payment and the higher fair compensation you might be entitled to.

2. Visa Pressure (HSM Status)

If you are here on a Highly Skilled Migrant visa, your residency is tied to your employment. Losing your job triggers a three-month search period. Employers know this causes panic, and panicked employees are more likely to sign a bad deal just to move on.

3. The Language Barrier

Even if you speak Dutch, legal terminology is complex. Employers might hand you a letter in Dutch that says one thing, while reassuring you of something else in English. Without a local network to ask for informal advice, many expats feel isolated.

Evidence Checklist: What to Collect

If you see your job reappearing online, you must act fast to preserve evidence. Once a vacancy is filled, the ad might disappear.

• The Vacancy: Take clear screenshots of the new job advertisement on LinkedIn, Indeed, or the company site. Ensure the date is visible. Save the full text.
• Your Job Description: Save your employment contract and your official job description. If you don’t have one, find your last performance review where your goals and tasks were listed.
• Internal Communications: Save emails praising your work or emails discussing the “restructuring” with vague reasons.
• Organizational Charts: If possible, save the old and new org charts to show that the “new” person sits in your exact old spot.

Legal Remedies: Fighting Back

If your employer lied about the redundancy, the termination might be invalid. Even if you signed a settlement agreement, you may have grounds to challenge it based on error (dwaling) or fraud. Your main legal options include:

• Annulment of Dismissal: You can ask the court to cancel the dismissal. If successful, you are legally still an employee and entitled to back pay.
• Fair Compensation (Billijke Vergoeding): Most employees prefer not to return to an employer who lied. Instead, you can claim “fair compensation.” This is a penalty payment on top of your standard severance, intended to punish the employer for bad behavior. In sham redundancy cases, this can be significant.
• The 26-Week Rule: If you were dismissed via the UWV and the employer hires someone for the same work within 26 weeks, they were legally required to offer the job to you first. Ignoring this gives you a very strong claim for damages.

Don’t Navigate This Alone

Discovering that your “redundancy” was just a way to replace you is a shock. It brings up anger and uncertainty about your future in the Netherlands. But you do not have to simply accept it.

Dutch employment law is complex, especially when it intersects with immigration status. If you are unsure about a settlement agreement you have received, or if you suspect your dismissal was not lawful, it is wise to have an expert look at the details.

We are here to listen.

Our firm specializes in assisting international professionals and expats. We can review your situation, explain your rights in plain English, and help you determine the best path forward—whether that’s negotiating a better package or challenging the decision.

Feel free to reach out to us for a confidential conversation about your case. We ensure your rights are protected so you can focus on your next step.