Dismissal, reorganisation and takeover
Some frequently asked questions about dismissal, reorganisation and takeover
There may also be reasons other than economic or organisational ones for parting with an individual employee. For example, the employee may have been ill for a long time, may have acted culpably, may not be functioning properly or the mutual relationship may have been seriously disrupted. In addition, there may be urgent grounds for instant dismissal, as a result of which the employment contract must be terminated immediately. Also in such an individual case, an employer must state the reasons for parting with the employee, and specific rules apply.
Not every company takeover is a transfer of undertaking. The situation must first be examined. The European Court has often had to rule on transfers of undertaking. That shows how complex this matter is. When a company or an independent part thereof is transferred, the staff employed is transferred to the acquiring party by operation of law. Our lawyers will assist you during the takeover.
If a reorganisation is at the expense of jobs, a range of rules and obligations apply. For example, the Dutch Works Councils Act (in Dutch: Wet op ondernemingsraden) imposes an obligation to seek the prior advice of the Works Council on major intended changes. In addition, the Dutch Collective Redundancy (Notification) Act (in Dutch: Wet Melding collectief ontslag) must be complied with if twenty or more jobs are lost. A collective labour agreement, too, may impose obligations to consult particular parties. Finally, specific selection rules apply in the event of job losses and redeployment. Each dismissal is assessed individually by the Employee Insurance Agency (in Dutch: Uitvoeringsinstituut Werknemersverzekeringen, UWV), and the employer must therefore meet the strict obligations imposed by law and regulations.
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