Position redundant with a permanent contract: rights and support

When your position becomes redundant while you are on a permanent contract, your employer structurally abolishes your role and your employment relationship becomes uncertain. You retain specific rights and protection under Dutch law and regulations. In this article you will read which steps are possible, what your rights are, and how outplacement can support you during this transition.

The difference between position loss and a permanent contract

A position that becomes redundant under a permanent contract is a far-reaching event. With a permanent contract you assume job security, whereas the loss of a position often comes unexpectedly. In the Netherlands a position can disappear through reorganisation (reorganisatie), automation or structural changes within the company. Abolishing a position is only permitted if there is a valid reason for it, such as business-economic circumstances.

Unlike temporary contracts, a permanent contract offers additional legal protection. Dismissal (ontslag) is not simply possible; the employer must meet strict dismissal criteria. This ensures that employees are not put out on the street just like that when their position becomes redundant.

The process surrounding a redundant position therefore differs substantially depending on your type of contract. Anyone with a permanent contract will notice that there are more safeguards and opportunities for guidance and reassignment.

Practical example: An employee with a permanent contract at a manufacturing company hears that their department is disappearing due to automation. They are formally declared surplus to requirements (boventallig), but cannot be dismissed immediately without a careful process and support, such as outplacement.

Legal protection when your position becomes redundant

Dutch law offers employees with a permanent contract extensive protection when their position becomes redundant. The employer must involve the UWV (the Dutch employee insurance agency) or the subdistrict court (kantonrechter) for permission to dismiss. Summary dismissal (ontslag op staande voet) or dismissal without a procedure is not permitted.

The employer has a reassignment obligation (herplaatsingsplicht): they must investigate whether you can move to another suitable position within a reasonable term (usually 26 weeks). Only when reassignment proves impossible may dismissal follow. As an employee it is important to cooperate with this process, but you are not obliged to accept every proposal.

In addition, you are entitled to a transition payment (transitievergoeding) as soon as you are dismissed, provided the initiative comes from the employer. You will find more information about this in the explanation of the transition payment on dismissal.

Example: An administrative employee who loses their position in a reorganisation (reorganisatie) is offered other vacancies by their employer. If these positions do not match their education and experience, they do not have to accept them just like that.

Specific steps and the dismissal process with a permanent contract

When your position becomes redundant, a clear process begins. First, the employer informs you in writing about the abolition of your position. You will receive an explanation of the reason and the intended steps. This is followed by a period of consultation in which the reassignment options are discussed. Often HR or an external party is involved in this process.

If reassignment proves impossible, the dismissal process is formally started. This can be done through the UWV (business-economic reason) or the subdistrict court (other reasons). After approval, the notice period (opzegtermijn) follows. The notice period with a permanent contract depends on your years of service and collective labour agreement (cao) arrangements.

During this process it is important to know your rights and to seek advice in good time. Often, outplacement is also offered at this stage, to support you in finding new work outside the organisation.

Practical example: An employee receives a letter from their employer announcing the redundancy of their position and offering a meeting to discuss the next steps. In this meeting, internal and external mobility are considered, with outplacement as a possible option.

The role of outplacement when a position becomes redundant

Outplacement is a guidance process that supports employees in finding new work after dismissal or the redundancy of a position. The employer often offers this as part of their duty of care and to ease the transition to a new job. Outplacement provides direction, practical guidance and emotional support during this period.

The programme can consist of career advice, application training, networking support and personal coaching. Outplacement is usually financed by the employer, with the content tailored to your personal situation and wishes. You will find more about the different phases in the article on how an outplacement programme works.

Example: An employee who loses their position through reorganisation is offered six months of outplacement guidance. During that time they work on their CV, learn new application skills and explore alternative career paths.

How this differs from dismissal, reorganisation and redundancy

The redundancy of a position under a permanent contract is not the same as immediate dismissal. Being surplus to requirements (boventalligheid) means that your position has become superfluous, but not that you are unemployed with immediate effect. It may also be that in a reorganisation you qualify for another position.

Dismissal through reorganisation is subject to separate rules and terms. Read more about this in the article Dismissal through reorganisation: what does it mean and how to proceed?. Being surplus to requirements is often a preliminary stage: you are then still employed, but without a concrete workplace.

Employers are obliged to apply objective criteria, such as the reflection principle (afspiegelingsbeginsel), when determining who becomes surplus to requirements. This prevents arbitrariness. If your position is the only one to become redundant, a tailored approach applies.

Practically speaking, you only qualify for outplacement once it is clear that your current position is disappearing for good and reassignment within the organisation is not feasible.

Emotional and practical consequences for employees

The redundancy of your position under a permanent contract brings uncertainty, grief and sometimes anger. Many people experience it as a loss. At the same time, this situation offers the chance to reflect on your wishes and ambitions. Outplacement helps you look to the future constructively.

Alongside searching for a new job, it is important to pay attention to your mental health. Talk with colleagues, a coach or career coach about your feelings and future options. Processing the loss is a normal part of the process.

Example: An employee who loses their position initially feels uncertain. Through conversations with an outplacement coach, they discover new talents and decide to make a career switch.

Financial aspects: transition payment and final settlement

If your position becomes redundant and you are ultimately dismissed, you are entitled to a transition payment (transitievergoeding). The amount depends on your years of service and gross monthly salary. This money can be used for retraining, coaching or as a financial buffer. You will find more explanation at transition payment.

In addition, after dismissal you receive a final settlement (eindafrekening), in which outstanding holiday days, overtime and any bonuses are paid out. You can read an overview of these components in the article on the final settlement.

Example: An employee with ten years of service receives, on termination, a transition payment of several months’ salary, plus payment of holiday days. This allows them to bridge the period to new work or invest in new training.

Tips: taking action when your position disappears

Processing the loss of your position is an intensive process. Stay involved in the reassignment process and be proactive in seeking solutions. Gather information about your rights, ask HR or a specialist for advice, and be critical of the alternatives offered.

Use outplacement as a springboard to new work. Work on your application skills, network in a targeted way, and be open to retraining or career guidance. You do not have to do it alone; professional guidance offers perspective and structure.

Do not forget that normal employment law continues to apply. You are entitled to clear communication, fair treatment and adequate guidance. You can read more practical tips in the article What if your position becomes redundant? Steps, rights and perspective.

Summary

If your position becomes redundant while you are on a permanent contract, you face a careful legal and practical process. You are entitled to protection, guidance and financial compensation. Outplacement plays an essential role in finding new perspective and processing the change. By making use of your rights and the offer of outplacement, you can come out of this period stronger and work purposefully towards a new start.