Mass layoff in The Netherlands
The Dutch Act on the Notification of Collective Layoff applies in the event that an employer intends to dismiss at least 20 employees in a single period of three months. The employer is obliged to notify both UWV and the trade unions, and to state the reasons for the proposed collective layoff, the number of employees they intend to dismiss with specific particulars of function, age, years of service, all in relation to the background of the total group of employees. Furthermore, the employer must state the projected dates of termination and the date on which the works council was consulted.
Reorganization: social plan
The employer must furthermore discuss with the trade unions not only the need to reorganise, but also the consequences thereof. In most cases, social plans will have to be prepared. UWV may not consider a request for permission to give notice of termination until one month after the date of notification of the collective layoff to UWV and the trade unions, unless the statutory delay risks the chances of re-employment of the redundant employers or the other workers in the company. If an employer does not give the required advance notification to UWV and the trade unions, but eventually requests permission to give notice from UWV to dismiss 20 or more employees within the three months period, the statutory delay is increased to two months. The mandatory delay serves to facilitate consultations between the employers, the trade unions and UWV, and in major cases, the Ministry of Economic Affairs for the Ministry of Social Affairs and Employment.
Dutch law firm AMS in Amsterdam
Dutch Law firm AMS is based in Amsterdam. Our Dutch labour lawyers have gained a broad experience in advising and litigating for (international) companies and individuals. The lawyers are highly involved with their client’s interests and offer a sharp and transparent fee structure. Should you require more information on employment law, or should you have any question with respect to litigation in The Netherlands, please feel free to contact us.