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Arbeidsrecht

Dismissal for Business Economic Reasons in Utrecht

Dismissal for business economic reasons in Utrecht may occur during reorganizations or financial difficulties. Learn more about the UWV procedure, the reflection principle, and your rights as an employee.

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Dismissal for Business Economic Reasons in Utrecht

In the event of a reorganization, financial difficulties, or closure of a business, dismissal for business economic reasons may be unavoidable.

What Constitutes Business Economic Reasons?

  • Financial difficulties - Prolonged losses or decline in revenue
  • Decrease in work - Fewer assignments or activities
  • Business restructuring - Mergers or reorganizations
  • Technological advancement - Introduction of automation
  • Relocation of the business
  • Termination of activities

Procedure via the UWV

  1. Submission of dismissal application - The employer requests permission from the UWV
  2. Employee response - The employee has 14 days to respond
  3. UWV decision - A decision is typically made within 4 to 8 weeks
  4. Termination by employer - If permission is granted, dismissal may proceed

The Reflection Principle

The reflection principle governs the order of dismissal:

  1. Employees are divided into age groups: 15-25, 25-35, 35-45, 45-55, 55+
  2. Within each group, the employee with the shortest length of service is dismissed first
  3. The age distribution must be preserved as much as possible

Obligation to Reassign

The employer must investigate whether reassignment is possible:

  • In another suitable role within the company
  • Possibly after additional training
  • Also at other locations or divisions

Transition Compensation

Calculation MethodAmount
Per year of service1/3 of the gross monthly salary
Maximum amount (2024)€94,000

Collective Dismissal

For the dismissal of 20 or more employees within a period of 3 months, stricter rules apply:

  • Mandatory notification to the UWV and trade unions
  • A one-month waiting period
  • Consultation on a social plan is necessary

Frequently Asked Questions in Utrecht

Can I challenge the dismissal selection?

Yes, during your defense at the UWV, you can indicate why the reflection principle was not correctly applied.

What if I am ill during a reorganization?

The prohibition on termination during illness remains applicable, even in cases of dismissal for business economic reasons.

Advice for Employees

  1. Verify whether the reflection principle has been correctly applied
  2. Request a clear explanation of the financial necessity
  3. Explore whether reassignment is an option
  4. Have your transition compensation reviewed by an expert

Legal basis: Article 7:669(3)(a) of the Dutch Civil Code

Local Assistance in Utrecht

For legal support, you can contact:

  • District Court of Midden-Nederland: Vrouwe Justitiaplein 1, Utrecht
  • Legal Counter Utrecht: Catharijnesingel 55, Utrecht