Reorganisation and dismissal

A reorganization usually involves dismissal due to a poor financial situation, structural work reduction, termination of (part of) the business activities, technological changes such as automation or relocation.

A dismissal on business economic grounds must in any case meet the following requirements.

• In the first place, it is important that your employer shows that there is a business-economic need for dismissal. For example, financial data such as profit and loss accounts and forecasts must demonstrate that there is a need for reorganization.
• Furthermore, the employer cannot arbitrarily determine which employee is eligible for dismissal. “The reflection principle” must be applied. When applying this principle, employees are divided into categories for each category of exchangeable jobs. The employee with the shortest employment in his age category qualifies for dismissal. In addition, certain groups of employees are eligible, as a priority, for dismissal (e.g. temporary employees).
• Finally, your employer must demonstrate that there are no relocation options within the company for you in a different, suitable job.

A reorganization can be difficult process for both the employee and the employer. It can affect smaller or larger groups of people within the organization.