A reorganization can have major consequences for employees. Sometimes functions disappear, departments merge, or a relocation takes place. Dismissal can be inevitable during a reorganization. Yet, as an employee, you have rights and employers are often required to offer a social plan.
In this article, we explain how dismissal works in case of reorganization, what a social plan entails, and how you can get the maximum out of such a scheme.
What is redundancy due to reorganization?
Redundancy due to reorganization falls under economic redundancy. This means that the employer is firing employees because of:
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Reduction of work.
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Cost savings.
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Organizational changes.
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Company closure or relocation.
In this case, the employer must apply for permission from the UWV (Employee Insurance Agency) and apply the reflection principle.
What is a social plan?
A social plan is a scheme that contains agreements about the consequences of the reorganization for employees. The plan is often drawn up in consultation with the works council or trade unions.
A social plan can include agreements about:
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Severance payments (in addition to the transition allowance).
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Outplacement guidance.
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Training or retraining.
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Assistance with job applications.
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Exemption from work while retaining salary.
Is a social plan mandatory?
A social plan is not legally required, but in practice, it is often used to make the reorganization run smoothly and to prevent conflicts.
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In large companies and in the case of collective redundancies, a social plan is common.
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In smaller reorganizations, individual negotiations are sometimes conducted.
Severance payment in reorganization
In case of redundancy due to reorganization, you are at least entitled to the transition allowance.ud83dudc49 The social plan often offers a higher compensation or another favorable arrangement.
Example:
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Statutory transition allowance = € 7,000.
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Social plan offers 1.5 × transition allowance.
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Total compensation = € 10,500.
Rights and choices of employees
As an employee, you can choose:
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Agree with the social plan.
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Do not agree and negotiate individually (sometimes this can yield more).
A lawyer can assess whether the social plan is fair or if there is room for additional negotiations.
Examples from practice
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Example 1: A large healthcare institution had to reorganize. The social plan offered employees 2 extra monthly salaries on top of the transition allowance.
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Example 2: An employee who did not agree with the social plan was able to negotiate a higher compensation individually.
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Example 3: A company without a social plan offered only the transition allowance. The judge ruled that this was sufficient, but the employee could have negotiated better through a VSO (Settlement agreement).
Checklist for dismissal and social plan
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📄 Check if the employer applies the reflection principle correctly.
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💶 See if the social plan is better than the transition allowance.
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📝 Check if there are agreements about outplacement or training.
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⚖️ Consider whether individual negotiation is more advantageous.
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📞 Always have a lawyer look before you sign.
Common mistakes
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Thinking that the social plan is always the only option.
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Signing quickly without comparison with own calculation.
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Not taking into account consequences for WW (unemployment benefit) or pension.
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Not getting legal help.
Frequently Asked Questions (FAQ)
1. Am I required to agree with a social plan?
No, you can also negotiate individually.
2. Do I always get a compensation in case of reorganization?
Yes, at least the transition allowance.
3. What is the benefit of a social plan?
Collective agreements provide certainty and usually better conditions.
4. Can I get more than stated in the social plan?
Yes, through individual negotiations or proceedings.
5. Does a lawyer help with dismissal during reorganization?
Yes, a lawyer can calculate what you get at a minimum and negotiate for a higher compensation.
Why Arslan Lawyers?
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Specialized in reorganization and dismissal
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Experienced in negotiating social plans and VSOs
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Regularly achieving higher compensations for clients
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Checking whether dismissal rules have been applied correctly
Conclusion
Dismissal during reorganization is often overwhelming, but through a social plan, you can claim favorable schemes. Still, it is important to always critically examine whether the plan or proposal is really the best for you. With legal help, you can often realize a better scheme or higher compensation.
