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Dismissal for economic reasons

Dismissal due to reorganisation or reduced work

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Detailed explanation, checklist and sources

An employer may apply to UWV for dismissal for economic reasons. The employer must substantiate the reason, select the correct employees and show that redeployment is not possible.

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The employer must demonstrate necessity

This may concern a poor financial situation, structurally less work, organisational change, technological change or business closure. UWV assesses whether the stated reason is plausible.

Who is eligible for dismissal?

For interchangeable positions, the proportionality principle is generally applied. Employees are divided into age groups, after which the length of employment is considered within each group. Deviations are allowed only in certain situations.

Redeployment and compensation

The employer must investigate whether you can be redeployed to a suitable position within a reasonable period, possibly with training. If termination is at the employer's initiative, there is usually an entitlement to transition compensation.

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UWV application and economic substantiation

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  • UWV application and economic substantiation
  • Job group and application of the proportionality principle
  • Available vacancies and redeployment investigation
  • Notice period and deduction of the UWV procedure period
  • Calculation of transition compensation and final settlement

Frequently asked questions

Can my employer choose who is dismissed?

The employer cannot choose freely. Selection rules apply to interchangeable positions. Your position, age group and length of service may therefore be decisive.

Can I respond during the UWV procedure?

Yes. You will generally be given an opportunity to submit a defence. Check the stated response deadline and provide relevant documents in time.

Need personal assistance?

Request help through our chat. We assess which professional fits your question. Review your details before sending. A request is not yet an instruction to provide services.

Sources and further information

UWV — dismissal for economic reasons ↗Dutch Government — proportionality principle ↗

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