Position Redundancy Due to Reorganization

Position redundancy due to reorganization means your job within the company is terminated as a result of an internal restructuring. This has major consequences for your career, rights, and obligations. This article explains what happens when your position is made redundant, the critical steps to take, and how outplacement can offer support.

What does it mean if your position is made redundant by reorganization?

When an employer initiates a reorganization, positions can be eliminated or merged. If your position is made redundant, it means your duties are permanently discontinued. This decision is often driven by economic reasons, automation, or market changes. Officially, you may be declared redundant, which directly affects your employment contract.

The process around a redundant position is bound by Dutch law. Your employer must involve the UWV (Employee Insurance Agency) or the subdistrict court for dismissal, unless you agree to a settlement agreement. The Work and Security Act (Wwz) determines how these procedures must progress and what rights you have, such as entitlement to a transition allowance.

Often, a social plan is established detailing agreements on guidance, financial arrangements, and possible redeployment. It is essential to read this plan carefully and fully understand your rights. If considering another position within the company, the employer’s redeployment obligation applies.

Legal considerations and UWV procedures when a position is lost

If your position becomes redundant due to reorganization, your employer must follow an objective and transparent procedure. The dismissal request is usually submitted via the UWV, which assesses whether the employer sufficiently demonstrates that the position is genuinely being eliminated and that redeployment is not feasible.

A key principle is the 'afspiegelingsbeginsel' (reflection principle), which involves ranking employees in similar roles by age and years of service. Those with the shortest service time in the oldest category are first eligible for redundancy. For more details, see Dismissal Due to Reorganization: What Does It Mean and What Next? and the legal requirements involved.

Besides formal procedures, it is crucial to know your rights, such as objecting to dismissal or understanding how this affects temporary contracts. If unsure, consult a legal advisor or HR specialist.

Transition allowance and financial impact

Following redundancy due to reorganization, you usually qualify for a transition allowance. This payment is intended to support your search for new work. The amount depends on your years of service and salary. Consider possible tax implications—read more about the transition allowance and taxation on this compensation to avoid surprises.

The social plan may also include additional compensation or agreements on the use of outplacement services. The final settlement typically covers outstanding vacation pay and other entitlements. See final settlements for more information.

Redeployment and employer obligations

Employers are legally required to assess redeployment options within the organization before proceeding with dismissal. This is called the 'herplaatsingsplicht' (redeployment obligation). They must consider vacant positions and whether additional training is feasible.

Typically, an assessment period of several months is observed. Your employer should actively support and facilitate this process. If redeployment is not successful, the employment contract usually ends. For example, if an administrative role disappears, the employer must check if retraining could make a switch to a similar position possible.

Different regulations apply for fixed-term contracts. Information about notice periods for fixed-term contracts may be relevant here.

The role of outplacement when your position is eliminated

Outplacement is professional guidance towards a new job outside your current organization. It is frequently offered after a position is eliminated due to reorganization, providing tailored support such as career coaching, job application workshops, and exploring new opportunities.

Through an outplacement program, you can identify your strengths and position yourself effectively in the job market. The social plan often includes an outplacement budget, giving you the freedom to choose your preferred agency. Learning more about the duration of outplacement programs and what outplacement involves will help you make an informed choice.

Example: After a production line position was eliminated, an employee started an individual outplacement process with a coach and quickly secured a new role that matched his skills and ambitions.

Practical steps after your position is made redundant

After receiving notice that your job is being eliminated, take these practical steps to maintain control:

• Carefully review the social plan.
• Have your settlement agreement legally checked.
• Explore redeployment opportunities within the company.
• Request outplacement options and budget information.
• Calculate your transition allowance, or seek expert help.
• Arrange your final settlement and verify payment of outstanding entitlements.

Engaging with an independent career coach can help you make well-considered decisions. Reading about the outplacement process and the coach's role gives you extra insight into what to expect.

Rights and responsibilities after dismissal due to reorganization

If your position is made redundant, you are entitled to transparent communication, a lawful dismissal process, and correct financial settlement. You are obliged to cooperate with redeployment efforts and, if offered, participate in outplacement. Employers must keep you informed in a timely and clear manner about the reasons for your dismissal.

Specific rules apply in cases of illness or partial disability. Reviewing information on resigning while on sick leave or outplacement during illness helps you understand your position.

As an employee, you may choose to be assisted by an external agency. You are also entitled to a notice period, and understanding notice periods for permanent contracts clarifies your rights.

Common pitfalls and tips to avoid them

The process of becoming redundant due to reorganization can be overwhelming. Common pitfalls include signing documents too quickly, overlooking the transition allowance, and missing out on your outplacement budget. Take your time and ask for professional review.

Do not underestimate the emotional impact. Seek professional support when dealing with substantial changes. Discussing outplacement options with your employer can smoothen the transition.

Pay attention to deadlines, especially regarding objections or appeals. Share experiences with peers or consult a career advisor. Outplacement during reorganizations offers practical tips as well.

Scenario: from redundancy to new opportunities

Imagine an administrative professional whose position is eliminated due to digitization. After consultations with HR and a career coach, she discovers a passion for project management. With targeted training and job search guidance, a suitable new role is found outside the original company. This case illustrates how effectively utilizing available resources and professional support can lead to a positive next step.

Summary

When your position is eliminated due to reorganization, you face complex procedures and important decisions. Understanding your rights, the legal context, financial implications, and making the most of outplacement are critical. Take time to review the social plan, seek professional guidance, and make decisions that support your future career.