Reorganization
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A reorganization is also known as a business dismissal.
It involves a dismissal of one, but often several employees due to business circumstances. These are circumstances related to the company or its operations.
Business dismissal is often thought to involve an employer who is forced to lay off one or more employees due to poor financial results, but there are more circumstances that fall under the heading of business dismissal.
Although the most common business economic reason is financial necessity, there are several other business economic reasons for which UWV dismissal proceedings can be initiated by the employer:
- Organizational changes/re-organizations
- Moving the entire business
- Ending a (part of) the business activities
- Moving the entire business
- Outsourcing van bepaalde activiteiten
- Work decrease
- Salary costs grant that expires
An employer has a large degree of policy freedom to determine how it wishes to set up its organization. The UWV only “marginally” tests the business economic reason put forward, meaning that the UWV is not concerned with whether the business economic measures are strictly necessary. The measures must pass the test of reasonableness. This means that the UWV only looks at whether another, thoughtful and deliberate entrepreneur would have done the same.
The UWV further checks whether the jobs in question are also structurally eliminated. In other words, if there is a small dip in turnover that is likely to recover within a few months, this dip will be insufficient to obtain dismissal approval. According to the UWV, there is only a structural situation if it is clear that the jobs will be lost over a future period of at least 26 weeks.
In addition to marginally testing the business economic reason, the UWV looks at two other important factors. These are whether the employer has proposed the right employees for dismissal (in accordance with the separation principle) and whether the employer has made sufficient efforts to redeploy the employees. Regarding redeployment, more can be expected from a large employee than from a small company.
Dismissal during illness?
It is common for an employee who is ill to be offered a settlement agreement. The advice is often not to simply agree to the termination of your employment contract while you are still ill. After all, you run the risk of losing your entitlement to benefits. However, there are situations in which a settlement agreement in the event of illness can be a solution.
In such a situation, it is also advisable to seek advice from a solicitor who specialises in employment law and can advise you on your rights and obligations in the event of illness, dismissal and settlement agreements.
Other problems
Is your problem not listed?Please schedule an appointment for a consultation.
Are you an employee facing redundancy due to a reorganisation?
Please do not hesitate to contact one of our employment lawyers. Kop Advocaten specialises in employment law and in assisting both employers and employees with matters such as reorganisations. You are welcome to contact us for a no-obligation consultation to assess your situation.
