When reorganisation happens: impact on outplacement and career

At a certain moment an organisation decides to adjust its structure, processes or staffing, and that is where a reorganisation starts. This can have consequences for employees, such as being made redundant (boventalligheid) or a change of role. This article describes when a reorganisation takes place, what it means for employees and the crucial role of outplacement in this process.

Definition of reorganisation and the reasons behind it

A reorganisation is a far-reaching process in which an employer makes changes to the organisation for economic, technological or strategic reasons. This can lead to roles being cut, tasks being redistributed or even dismissals. Unlike natural staff turnover or individual performance issues, a reorganisation is always the result of broader, organisational changes.

In practice we see that reorganisations take place amid declining revenue, mergers, acquisitions, digitalisation or changed market conditions. An example: a retail company decides to close its physical shops because of the growth in online sales. As a result, shop staff may be made redundant.

There is a clear legal framework in the Netherlands for reorganisations, which sets out, among other things, when a reorganisation may be carried out. The Collective Redundancy (Notification) Act (Wet Melding Collectief Ontslag, WMCO) and dismissal law are the guiding rules here. Employers are obliged to inform the UWV (the Dutch employee insurance agency) and trade unions in the event of collective redundancy.

Signs and phases: when does a reorganisation start?

A reorganisation often does not begin overnight; there are signs beforehand. Think of persistent rumours about cutbacks, management announcements of strategic changes of course or the halting of investments. Employees may feel uncertain when projects are put on hold or vacancies are not filled.

The phases of a reorganisation usually run as follows:

• Orientation phase: management explores options and analyses the need for change.
• Decision-making phase: a reorganisation plan is drawn up, often in consultation with the works council.
• Communication phase: employees are informed about the plans and consequences.
• Implementation phase: the actual changes are carried out, including redeployment or dismissal.

In every phase it is important that employers communicate carefully and comply with their legal obligations. Poor communication increases the risk of uncertainty and mistrust within the team.

Legal frameworks and obligations during a reorganisation

When a reorganisation leads to dismissal, strict rules apply in the Netherlands. Employers must seek permission from the UWV or the subdistrict court to dismiss employees for business-economic reasons. In doing so, the reflection principle (afspiegelingsbeginsel) must be applied: not arbitrariness, but objective criteria determine which employees are made redundant.

Collective redundancy (20 or more employees) requires notification to the UWV and consultation with trade unions. Employers must also take account of redeployment obligations within the organisation. Offering an outplacement programme is not a legal obligation, but it is often seen as good employment practice and part of the duty of care towards employees.

For specific guidance on the rights and obligations surrounding reorganisation, Employee reorganisation rights: everything about rights, obligations and outplacement offers more in-depth information.

The role of outplacement in a reorganisation

Outplacement is the guidance of employees towards new work outside the organisation. Particularly during a reorganisation, this programme gives employees perspective. It increases the chance of a successful move to another job and helps them come to terms with the changes.

Employers often opt for outplacement when they cannot redeploy employees. An outplacement programme consists of career advice, job-application support and personal coaching. This gives employees support and insight into their options on the labour market.

The outplacement programmes of Care4Careers are tailored to the challenges employees experience during a reorganisation. A bespoke approach is essential here, because every situation is unique.

Exactly how a programme unfolds is described in detail in how an outplacement programme works.

When does outplacement come into play during a reorganisation?

Outplacement often comes into the picture once it is known which roles are to be cut or which employees are to be made redundant. In some cases it is offered straight away at the first dismissal meeting, in other situations it follows once it is clear that redeployment within the organisation is not possible.

Offering outplacement is not compulsory, but it is strongly recommended, certainly in larger reorganisations or when employees have long years of service. Examples from practice show that, thanks to timely support, employees find a suitable new job more quickly and retain their confidence.

The considerations around the timing of the offer and the content of the programme are covered in when to offer outplacement.

Examples from practice: reorganisation and outplacement

A manufacturing company had to cut ten jobs because of automation. Employees were informed in good time and were given the opportunity to take part in an outplacement programme. One employee found work in another sector thanks to career guidance. Another chose to follow a training course, supported by the transition payment (transitievergoeding) budget.

Outplacement programmes are also common in mergers between healthcare institutions. Employees who could not be redeployed received support with writing application letters and preparing for interviews. This ensured a smoother transition, both for employees and for the organisation.

More practical examples and pointers for supporting employees during a reorganisation can be found in outplacement during reorganisation: how to set employees on the right path.

The financial side: payments and costs

In the event of dismissal due to reorganisation, employees are entitled to a transition payment (transitievergoeding). With this payment they can (partly) finance an outplacement programme or spend it on training. Employers regularly choose to offer a programme straight away, so that employees can work on their future without worries.

The cost of outplacement varies depending on the duration, the level of guidance and additional services such as coaching or career assessments. You can read more about this in the explanation of outplacement costs and information about the transition payment.

For employees aged 50 and over there are sometimes additional schemes or special programmes; see also outplacement for the over-50s.

Supporting employees through emotions and uncertainty

A reorganisation can be emotionally far-reaching. Employees experience feelings of uncertainty, anger or disappointment. Good support is therefore essential. Outplacement coaches help not only with practical matters, but also offer emotional support.

Holding careful conversations and communicating in good time are important success factors. In how to raise the subject of outplacement you will find tips on making the topic discussable in a respectful way.

Coaching offers a safe place to express emotions and develop new perspectives. Read about the approach in outplacement coaching.

The employer’s role: duty of care and good employment practice

Under Dutch law, an employer has a duty of care towards employees. This means, among other things, providing appropriate information, facilitating internal redeployment and, where necessary, supporting external mobility through outplacement.

Good employment practice is expressed in drawing up a social plan, dialogue with the works council and respecting the interests of employees. This contributes to a positive corporate image and reduces the risk of legal proceedings or discontent.

Working with an outplacement agency such as Care4Careers ensures a professional and empathetic process, in which both the organisation and the employee are supported.

Summary

When a reorganisation arises, it is essential for employers to act transparently and carefully. Employees have the right to clear communication, fair selection and appropriate support. Outplacement offers concrete opportunities and hope during an uncertain period. By making use of professional guidance and following the legal framework, both organisations and employees can emerge stronger from a reorganisation.