Reorganizations

Businesses are constantly evolving. For example, they may develop new products or phase out old ones; technological advances may mean that fewer staff are needed to provide the same services; or they may relocate part of their production process abroad. The fluctuating economy also means that businesses are constantly on the move. To keep a business healthy, its organisation must be able to adapt to such changing circumstances. This can be achieved through a reorganisation. A reorganisation is defined as a set of organisational and financial measures aimed at creating a sound basis for the company’s continued operation. A reorganisation often has significant consequences for staff, as jobs may be lost as a result of the reorganisation. In principle, in the event of a reorganisation, an employer must first let go of agency staff and employees working under fixed-term contracts. Should this prove insufficient, the employer may terminate employment contracts on the grounds of job losses, having first obtained a redundancy permit from the UWV. When a reorganisation is taking place, it is often advisable to bring in the expertise of an experienced employment lawyer.