Collectief ontslag
Collective dismissal
Collective redundancy is the simultaneous termination of employment contracts with twenty or more employees within a three-month period at a single establishment. Such redundancies are subject to the stringent procedure prescribed by the Collective Redundancy Notification Act (WMCO).
Collective dismissal occurs when an employer simultaneously terminates the employment of a large number of employees, typically in the context of a reorganisation or business closure. The WMCO requires the employer to notify the UWV and the trade unions, followed by consultations on the necessity of the measures and their social implications. This prevents arbitrary action and ensures a careful balancing of interests.
Its relevance lies in the protection of employees’ rights and the obligation to conclude a social plan, including redeployment efforts and the application of the reflection criteria. In practice, this leads to longer processing times and increased costs for the employer, while providing greater legal certainty for all parties.
In practice, collective dismissal is frequently resorted to in connection with mergers or economic downturns, with emphasis placed on transparency and support for the employees concerned.
“Due to the intended closure of the factory, the employer has notified the UWV and the trade unions of the collective redundancies.”
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