Terug naar Encyclopedie
Arbeidsrecht

Dismissal for Business Economic Reasons in Leiden

Dismissal for business economic reasons in Leiden can occur during reorganizations or financial problems. Read about the UWV procedure, reflection principle and transition payment.

2 min leestijd

Dismissal for Business Economic Reasons in Leiden

When a company in Leiden is faced with reorganizations, financial problems or cessation of activities, dismissal for business economic reasons may be unavoidable.

What Falls Under Business Economic Reasons?

  • Financial problems - Prolonged losses or decline in revenue
  • Less work - Decline in orders or tasks
  • Business changes - Restructuring or merger
  • Technological advancement - Implementation of automation
  • Relocation of the business
  • Closure of the business

Procedure via UWV in Leiden

  1. Submit dismissal request - The employer applies for permission from the UWV
  2. Employee's response - The employee has 14 days to object
  3. UWV decision - The decision usually follows within 4 to 8 weeks
  4. Termination by employer - If permission is granted, dismissal may take place

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 tenure is dismissed first
  3. The age distribution within the company must remain intact as much as possible

Obligation to Redeploy

An employer in Leiden must investigate whether the employee can be placed elsewhere:

  • In another suitable position within the company
  • Possibly after additional training
  • Also at other branches or departments

Transition Payment in 2024

Calculation MethodAmount
Per year worked1/3 of the gross monthly salary
Maximum amount (2024)€94,000

Rules for Collective Dismissal

If in Leiden 20 or more employees are dismissed within 3 months, additional obligations apply:

  • Notification to UWV and trade unions is required
  • A waiting period of 1 month is observed
  • Consultation on a social plan is required

Practical Questions

Can I object to my dismissal?

Yes, during the UWV procedure, you can indicate within two weeks why you believe the selection is incorrect.

What if I am ill during a reorganization?

The prohibition on termination due to illness remains applicable, even in the case of dismissal for business economic reasons.

Advice for Employees in Leiden

  1. Check whether the reflection principle has been applied correctly
  2. Request a clear explanation of the economic necessity
  3. Investigate whether redeployment is possible
  4. Have the calculation of your transition payment reviewed

Legal basis: Article 7:669 paragraph 3 sub a Dutch Civil Code

Local Assistance in Leiden

For legal support, you can go to the Juridisch Loket Leiden, located at Stationsweg 46. In addition, the District Court of The Hague, Leiden location handles cases regarding dismissal and employment disputes.