Position redundant permanent contract

When your position becomes redundant while holding a permanent contract, this means your employer is permanently eliminating your job and your future at the company is uncertain. Dutch law provides specific rights and protections in this case. This article explains the steps, your rights, and how outplacement can support you in this transition.

The difference between redundancy and permanent contracts

Losing your position while under a permanent contract is a significant event. A permanent contract implies job security, so redundancy often comes as a shock. In the Netherlands, jobs may be eliminated due to reorganization, automation, or structural changes. Such decisions must have valid grounds, typically economic circumstances.

Unlike temporary contracts, permanent contracts offer additional legal protection. Employers cannot simply terminate your employment; strict dismissal criteria must be met. This ensures that permanent employees have safeguards and cannot be dismissed arbitrarily.

The redundancy process differs considerably based on contract type. Employees with permanent contracts enjoy more guarantees and opportunities for guidance and reassignment.

Practical example: An employee with a permanent contract in manufacturing learns his department is closing due to automation. He is declared redundant but cannot be dismissed immediately without a proper process and support, such as outplacement.

Legal protections if your position is made redundant

Dutch legislation offers extensive protection for employees with permanent contracts whose positions are eliminated. Employers must seek permission from the UWV or subdistrict court for dismissal. Summary dismissal without procedure is not allowed.

Employers have a reassignment obligation: they must actively seek suitable alternative positions within a reasonable period (usually 26 weeks). Only if reassignment is not possible may dismissal proceed. Employees are expected to cooperate but are not obliged to accept every proposal.

If dismissal occurs on the employer’s initiative, you are entitled to a transition allowance. Learn more about this in the transition allowance article.

Example: An administrative employee made redundant in a reorganization is offered alternative vacancies. If these do not match her background or experience, she is not obliged to accept them uncritically.

Specific steps and the dismissal process with a permanent contract

When your position is made redundant, a clear process begins. Your employer formally notifies you in writing, stating reasons and outlining the next steps. A consultation period follows to discuss reassignment options. HR or external advisors are often involved at this stage.

If reassignment is not possible, the formal dismissal process starts, via the UWV (for economic reasons) or subdistrict court (other reasons). After approval, the notice period applies. The notice period for a permanent contract depends on your years of service and collective agreements.

Knowing your rights and seeking timely advice is essential. Outplacement is often offered at this stage to support you in finding a new job outside the organization.

Practical example: An employee receives a letter informing him of redundancy and an invitation to discuss next steps, including internal and external mobility options, with outplacement as a potential solution.

The role of outplacement in redundancy situations

Outplacement is a support process helping employees find new jobs after dismissal or redundancy. Employers often offer this as part of their duty of care and to ease the transition. Outplacement provides direction, practical support, and emotional guidance during this period.

The program may include career advice, application training, networking support, and personal coaching. Employers usually fund outplacement, tailoring the program to individual needs and wishes. For more on the phases involved, read how an outplacement process unfolds.

Example: An employee made redundant by reorganization receives six months of outplacement support, during which he works on his CV, refines job search skills, and explores alternative career paths.

How redundancy differs from dismissal, reorganization, and surplus status

Redundancy of a position under a permanent contract is not the same as immediate dismissal. Surplus status means your position is no longer needed, but you are not unemployed yet. In some reorganizations, a different role may become available to you.

Dismissal due to reorganization follows specific rules and timelines. For more, see Dismissal due to reorganization: what does it mean and what next?. Surplus status is often a preliminary stage; you remain employed but without a concrete role.

Employers must apply objective criteria, such as the reflection principle, to determine redundancy. This prevents arbitrariness. If your position alone is made redundant, a customized process applies.

Outplacement generally comes into play once it’s clear your current job will not return and reassignment is not feasible.

Emotional and practical consequences for employees

Losing your position under a permanent contract brings uncertainty, sadness, and sometimes anger. Many experience it as a loss. However, it is also an opportunity to reassess your ambitions and wishes. Outplacement helps you constructively focus on the future.

Besides job searching, it is important to look after your mental health. Speak with colleagues, a coach, or a career advisor about your feelings and future prospects. Processing this loss is a normal part of the change process.

Example: An employee who loses her position initially feels uncertain but, through outplacement coaching, discovers new talents and decides to make a career switch.

Financial aspects: transition allowance and final settlement

If your position is made redundant and you are dismissed, you are entitled to a transition allowance. The amount depends on your years of service and gross monthly salary. This may be used for retraining, coaching, or as a financial buffer. More details can be found in the transition allowance article.

Upon dismissal, you also receive a final settlement, covering accrued vacation days, overtime, and possible bonuses. For a breakdown, see the article on the final settlement.

Example: An employee with ten years’ service receives a transition allowance worth several months’ salary, plus payment for unused vacation days, helping bridge the gap to a new job or fund retraining.

Tips: how to proactively handle redundancy with a permanent contract

Coping with redundancy is an intensive process. Participate in the reassignment process and actively seek solutions. Gather information about your rights, consult HR or a specialist, and evaluate the alternatives you are offered.

Use outplacement as a springboard to new work. Improve your application skills, network strategically, and consider retraining or career guidance. Professional support can provide perspective and structure at this time.

Remember that standard labor laws apply. You are entitled to clear communication, fair treatment, and adequate guidance. For more practical tips, see What if your position becomes redundant? Steps, rights and perspective.

Summary

If your position becomes redundant while you have a permanent contract, you will go through a careful legal and practical process. You are entitled to protection, guidance, and financial compensation. Outplacement plays a vital role in helping you find new perspective and manage the change. By making use of your rights and outplacement support, you can move forward and work purposefully towards a new start.