An individual employment contract is a contract between you as an employee and your employer. It contains the agreements about your work, such as your position, salary, working hours and other conditions of employment.

For high-tech professionals, the following elements are often important:

  • Job description and responsibilities
  • Salary and bonus schemes
  • Working hours and flexibility
  • Intellectual property and confidentiality clauses
  • Training and development opportunities
  • Non-competition clause (if applicable)

An employment contract can end in several ways:

  • By operation of law (when a temporary contract expires)
  • By termination by the employee
  • By termination by the employer (with permission from UWV or subdistrict court)
  • By mutual agreement
  • Through dissolution by the court
  • Due to death of the employee

If you want to resign yourself, follow these steps:

  1. Have a face-to-face meeting with your employer
  2. Write a formal letter of resignation
  3. Take into account the notice period in your contract or collective agreement
  4. Ask for an acknowledgement of receipt of your resignation letter
  5. Agree on handling pending cases

If your employer wants to fire you, you have the following rights:

  • Right to a valid reason for dismissal
  • Right of defence against dismissal
  • Right to a proper dismissal procedure (via UWV or subdistrict court)
  • Possible entitlement to severance pay
  • Right to a notice period (unless there is summary dismissal)

A settlement agreement (vso) is a written agreement in which you and your employer agree on the termination of your employment by mutual consent. It sets out all the conditions and arrangements surrounding your dismissal.

A settlement agreement usually contains the following elements:

  • The reason for dismissal
  • The end date of the employment contract
  • Severance pay, if any
  • Agreements on holidays and pay
  • Arrangements regarding company property
  • Agreements on competition and confidentiality clauses

Yes, during the probationary period, both you and your employer can immediately terminate the employment contract without notice. The employer does not have to give a reason for this, unless you explicitly ask for it.

If you disagree with your dismissal:

  1. Do not sign any agreements
  2. Let your employer know in writing that you do not agree
  3. Wait for the formal dismissal procedure (via UWV or subdistrict court)
  4. Prepare your defence
  5. Consider legal assistance, e.g. through VHP2

A disrupted working relationship is a situation where the working relationship between you and your colleagues or supervisor has become so bad that good cooperation is no longer possible. This can indeed lead to dismissal, but only if the court judges that the relationship is irreparably damaged and reinstatement is not possible.

In principle, if you resign yourself, you are not entitled to WW benefits. There are exceptions, for instance if you resign because of an urgent reason. In such a situation, it is wise to first seek advice from VHP2 before taking action.

  • A non-compete clause prohibits you from working for a competitor or starting a competing business yourself after your employment.
  • A non-solicitation clause prohibits you from approaching or taking over customers or employees of your former employer after your employment.

Both clauses must be agreed in writing and often have a limited validity period.

In principle, your employer cannot unilaterally change your terms of employment unless there is a unilateral change clause in your contract. Even then, the employer must have a serious interest in the change and it must be reasonable. In case of doubt, you can always seek advice from VHP2.

Please remember that this FAQ contains general information. For specific advice on your situation, it is always wise to contact VHP2 or a legal adviser.

 

The Whistleblower Protection Act came into force for large employers (at least 250 employees) on 18 February 2023. On 17 December 2023, it also came into force for medium-sized employers. From that date, the law applies to all employers with 50 or more employees in both the public and private sectors. Incidentally, this is a partial entry into force. The sanction possibilities of the House for Whistleblowers and the method of anonymous reporting still need to be worked out in more detail in an Order in Council (AMvB).

The 30% scheme allows incoming expats to be paid 30% of salary untaxed for five years. From 1 January 2024, two austerity measures will take effect. First, the 30% scheme will be capped at the remuneration cap under the Top Income Standardisation Act (2024: EUR 233,000 gross). This capping will apply to expats using the 30% scheme from 1 January 2023. For expats already covered by the 30% scheme in 2022, a transitional arrangement applies. They will not face the capping until 2026.

Furthermore, the 30% scheme will be phased out. From 1 January 2024, an exemption of 30% of salary will apply for the first 20 months, an exemption of 20% will apply for the following 20 months and an exemption of 10% will apply during the last 20 months. For expats already covered by the 30% scheme in 2023, transitional rules apply. The phase-out rule does not apply to them.

During the discussion of the phasing-out scheme in the Senate, a motion was passed regarding the 30% scheme. The petitioners ask the government to bring forward the evaluation of the 30% scheme and, based on this, to come up with an alternative in the 2025 Tax Plan that is less harmful to the economy. It cannot therefore be ruled out that the phasing out of the 30% scheme will still be reversed and/or replaced by a less far-reaching retrenchment.

Minister Van Gennip (Social Affairs and Employment) modernises laws and regulations on child labour. Since 5 November 2023, there has been a ban on flash delivery drivers under 16 years of age (as also applies to meal delivery drivers). Further amendments to the Further Regulations on Child Labour are expected. In early 2024, it will regulate that 13- to 15-year-olds may work until 8pm on a non-school day, instead of until 7pm. Working time and rest time will remain the same in scope. For 13- and 14-year-olds, in addition, a parent or guardian must give permission. It is not yet known on which date these changes will come into force.

For children working as influencers, more time is needed to make clearer rules. The House of Representatives will be informed about this in the first half of 2024. For more information on the modernisation of child labour regulations, see the Parliament letter of 13 April 2023.

The STAP (Stimulus to Labour Market Position) budget is an allowance for training and development of EUR 1,000 per person per year. The government has decided to end the STAP budget. From 2024, no more funds will be released for this.

An amount of EUR 147 million remains from the 2023 STAP budget. Of this amount, EUR 73.7 million will be used to temporarily increase the SLIM scheme (Incentive Scheme for Learning and Development in SMEs) during 2024-2027.

From 1 July 2024, large employers (more than 100 employees) will be obliged to keep track of how much CO2 is emitted from commuting and business trips. These CO2 emissions must then be reported to the government by 30 June of the following calendar year. These new regulations are a precursor to the emissions cap for business travel, which is likely to come into force on 1 January 2026. When this emission cap takes effect in 2026, CO2 emissions will be capped at 96 grams of CO2 per passenger kilometre.

As a result of the entry into force of the Future Pensions Act, the entry age for pension accrual will be lowered from 21 to 18 years from 1 January 2024. Pension schemes that still assume an entry age of 21 will therefore have to be adjusted.

For the years 2024 to 2027, the state pension age will be 67 and in 2028 it will be 67 years and three months. Minister Schouten (Poverty Policy, Participation and Pensions) announced that the AOW age will remain unchanged at 67 years and three months in 2029. For more information, see the central government website.

  • Increase maximum transitional compensation: The maximum transitional compensation in 2024 is EUR 94,000 gross (2023: EUR 89,000 gross) or a maximum of one year's salary if the salary exceeds that amount.
  • Increase WNT remuneration ceilings: For 2024, the general remuneration maximum from the Top Income Standardisation Act (WNT) has been set at EUR 233,000 gross (2023: EUR 223,000 gross). The WNT caps the remuneration of top officials in the (semi)public sector. Reduced ceilings have been set for the education, culture, media, housing associations, healthcare and development cooperation sectors. An increased maximum applies to health insurers. An overview of the WNT remuneration ceilings for 2024 can be found here. The new Implementation Regulations WNT 2024 and Policy Rules WNT 2024 have also been published. The Beleidsregels WNT 2024 have not changed in substance. The new Implementation Rules WNT 2024 have been modified in some respects. For instance, the description of a number of remuneration components has been clarified in response to developments regarding modernisation and flexibilisation of employment conditions.
  • Untaxed home working allowance: The untaxed home working allowance will be increased to a maximum of EUR 2.35 per day in 2024 (2023: EUR 2.15).
  • Unreimbursed travel expenses: The untaxed travel allowance will be increased to a maximum of EUR 0.23 per kilometre in 2024 (2023: EUR 0.21).
  • Free space working expenses scheme: The temporary increase in the free space in the working expenses scheme will expire. From 2024, the free space for wage bill up to and including EUR 400,000 will be: 1.92% (2023: 3%). Insofar as the wage bill exceeds EUR 400,000, the free space has remained unchanged at 1.18%.
  • Maximum pensionable pay: The maximum pensionable salary as of 1 January 2024 has been provisionally set at EUR 137,800 gross (2023: EUR 128,810 gross). For more information, see the Tax Office's website. The final determination has yet to be published.

 

How does a collective agreement come about, who are involved and how does the member consultation process work in the case of a collective agreement? And: to whom does the collective agreement apply? This faq provides answers to questions related to the collective agreement process.

A collective bargaining agreement (CBA) is a written agreement containing agreements on terms and conditions of employment, such as salary, allowances, overtime payment, working hours, training, reorganisations or leave. These agreements are agreed between parties to a collective agreement: employers' organisation(s) and trade unions (employees' organisations).

A collective agreement determines, among other things, what you will earn, how many holiday hours you will get, and whether you can stop working early. It has a serious influence on your daily life. That is why the VHP2 wants to involve employees in high-tech as much as possible in the formation of these agreements.

The creation of a collective agreement rarely happens the same way and depends on circumstances and developments. We gather as widely as possible from employees what they would like to see in their new collective agreement. During the CAO trajectory, we always link up with the supporters and members determine whether a negotiation result is good enough. It is important to know that VHP2 can only achieve good results when we are strong with more members and when members are prepared to actively participate, for example by thinking along, sharing messages, and if necessary taking action.

On the front end, we agree on a number of days to negotiate. In principle, we stick to the agreed dates, but it can be longer or shorter if we don't reach an agreement. A new collective agreement does not mean that working conditions are 'finished'; this is a dynamic process that goes on all the time.

The main difference is that a minimum collective agreement allows the employer to deviate from it, while a standard collective agreement does not, even if it is more favourable to the employee.

  • Standard collective bargaining agreement: Additional terms and conditions of employment are not allowed; parties may not make other agreements on matters already covered by the collective agreement.
  • Minimum collective agreement: The collective agreement provides a lower limit of what the employer may offer. He may deviate from the collective agreement provided it is favourable to the employee, for example by offering a higher salary than the salary scales of the collective agreement state.

The agreements in a collective agreement are often more favourable than the legal terms of employment. For instance, the salary in a collective agreement may be higher than the minimum wage, and employees may get more holidays than the legal minimum. There are also agreements in a collective agreement that are not covered by the law, such as opportunities for training. With a collective agreement, both employer and employees know where they stand. An employer then does not have to renegotiate terms of employment with each employee when legislation changes.

Initially, a collective agreement applies only to employers and employees who are members of one of the parties to the collective agreement that concluded it. Once the Minister of Social Affairs and Employment has declared a collective agreement generally binding (AVV), the collective agreement applies to all employers and employees in a sector. This provides peace and clarity and prevents competition on terms of employment.

Yes. A collective agreement is concluded for a specific period, usually one or two years. A new collective agreement is usually not in place when the end date of the current one has passed. As long as there is no new collective agreement, the provisions of the 'old' collective agreement remain in force. This is called aftereffect. Parties usually agree that the new CAO will take effect retroactively as of the date the previous one expired.

Sometimes employers try to give a different interpretation to the collective agreement or they do not fulfil the agreements. Then it is time to sound the alarm at VHP2 Legal Aid. It is important that you report signals, so that we can take action.

If the collective bargaining parties are out, an agreement is reached. These are the possible forms of an agreement:

  • Agreement in principle: The best version, reflecting the key points of their commitment to all CBA parties. Negotiators are proud of the result and convey it positively to members. The outcome of the member consultation is decisive.
  • Bargaining agreement: CAO parties have reached agreements that include points that are important to both parties. The constituency can have its say on the CAO agreements.
  • Negotiation result: The parties would have liked to achieve more, but this is the maximum achievable under the circumstances. The constituency can comment on the agreements reached.
  • Final offer: If employer and employees cannot agree, a stalemate may arise. The employer can then make a final offer. Unions decide whether to submit the final offer to members or suspend negotiations if the final offer is too bad.

VHP2 thinks that all employees in a sector can count on the same terms of employment. That is why we make a strong case for declaring collective agreements generally binding (AVV). With an AVV, a collective agreement applies to the whole sector, so to all employers and employees. This promotes labour peace and good relations within the sector. All other agreements between employer and employee that conflict with the AVVV'd collective agreement are null and void.

VHP2 is consulting its members on an agreement for a new collective agreement. The vote of the supporters is decisive in the decision-making. On the basis of the final result, VHP2 decides whether to enter into the collective labour agreement.

In total, you will get 9% pay increase during the 2024-2025 collective agreement period: By 1 June 2.75%, by 1 January 3.25% and by 1 June 2025 3%. In this salary tables you can see what this means for your salary.

No, the collective agreement Metalektro has several public holidays, but May 5 is not one of them. Not once every five years either.

Most employees in the Metalektro accrue 27 holidays per year.
Employees covered by the transitional arrangement for senior citizens (Basic CBA 4.1.5) accrue 25 holidays per year. This difference of 16 hours is reflected in the BJA table in 7.3 of the CBA.

Transitional extra holidays for senior citizens

The employee who was already employed by his employer on 1 January 2009 and was 40 to 44 years old at that time will get an additional 3 days. The employee who was 45 to 49 years old on that date gets an additional 4 days. The employee who was 50 or older on that date and is now 63 or older is entitled to 22 days.

Yes, the employee working at a company covered by the Metalektro is obliged to participate in the pension scheme of the Metalektro Pension Fund Foundation (PME), unless PME has exempted the employer from this obligation.

That's a complicated question.
Read more about it on this page

With the employer. It must approve the application for the 80-90-100 variant if you are 60 or older and work regular shifts, or if you are 62 or older without regular shifts. In both cases, a salary requirement of up to €70,000 does apply. If you want the 70-85-100 variant and earn max €70,000, the employer does not have to approve it. The same applies if you earn more den €70,000.

The main rule is that the employee works full-time in five days. You can agree with your employer to work fewer hours, which is called part-time. All agreements in the collective agreement then apply in proportion to the number of hours worked.

The collective agreement has the concept of regular shift work. This means that you work shifts according to a predetermined schedule for at least one year. You will receive a bonus for this. See also the Basic CLA 3.7.3.

You accrue holiday allowance during the period from 1 July to 30 June the following year. Per month, this is 8% of the monthly earnings in the month of June of the accrual period (i.e. the last month).

Yes. A maximum of 10 leave days per year. You take these days in consultation with the employer.

This is different whether you work two- or three-shifts and work on Sundays or recognised public holidays, see 3.7.3 in the Basic CLA.

Yes, the employee working at a company covered by the Metalektro is obliged to participate in the pension scheme of the Metalektro Pension Fund Foundation (PME), unless PME has exempted the employer from this obligation.

Yes, except if your annual salary including holiday allowance in 2024 and 2025 for full-time employment is higher than €120,526 on 1 June 2024 and €124,443 on 1 January 2025 and €128,176 on 1 June 2025.

This amount will be indexed by the increases mentioned in Article 3.4 on the dates mentioned therein.

With the employer. It must approve the application for the 80-90-100 variant if you are 60 or older and work regular shifts, or if you are 62 or older without regular shifts. In both cases, a salary requirement of up to €70,000 does apply. If you want the 70-85-100 variant and earn max €70,000, the employer does not have to approve it. The same applies if you earn more den €70,000.

True. In the version from 2020, the choice was made to include the provisions in full in the booklet and no longer refer to the Basic CBA when the provisions are identical.

Yes, you can. Any employee employed by an employer falling within the scope of the RVU Metalektro collective agreement can participate in the RVU Metalektro if:
1.such employee leaves employment at his own request during the period from 30 June 2022 to 31 December 2025; and
2. has reached an age on the retirement date that is not more than 36 months and not less than 6 months before the state pension age; and
3. earns a gross monthly salary of up to EUR 4,488 excluding allowances for full-time employment.

Yes, you can. The RVU benefit is then calculated pro rata based on the scope of work (number of hours worked. Example: Variant 80/90/100%: counts as part-timer 80%).

If your employer is in dire straits and may go bankrupt, it can have major consequences for you as an employee. Bankruptcy usually comes completely unexpected and leads to a lot of tension and uncertainty for employees. This FAQ answers questions such as: should I immediately look for other work or can I keep my job? How long will my salary continue to be paid? And what about my holiday pay and pension? Is a relaunch possible and, if so, what does it mean for me?

In case of serious financial problems, a company can apply for a suspension of payments. This means the company does not have to repay its debts for a certain period of time. Suspension of payments is granted in case of temporary financing problems. The court appoints an administrator, who is put in charge of the company together with the employer.

Salaries will be paid as long as there is money and the administrator allows it. If your employer can no longer pay the salaries, you are eligible for an allowance from the UWV. This relief is called an insolvency benefit. The UWV then pays the following:

  • The wages you are still owed for up to 13 weeks. This includes, for example, back pay, overtime, expense allowances or a year-end bonus.
  • Pay over the notice period up to a maximum of 6 weeks after the notice date.

In case of suspension of payments, you remain employed and the employment contract continues. The usual rules for dismissal and dismissal protection apply if the employer intends to dismiss employees. A moratorium can result in bankruptcy, which can have far-reaching consequences for you as an employee.

If an employer can no longer pay salaries and bills and pay off debts, the court will declare the company bankrupt. In bankruptcy, the organisation effectively ceases to exist: all its assets are seized. The court appoints a receiver, who is given the management of the assets (the bankruptcy estate) and settles the bankruptcy. The main task of the trustee is to look after the interests of all creditors, including the employees. What steps does the trustee take?

  • Lists assets, debts and assets.
  • Terminates employment contracts (with up to six weeks' notice).
  • Examines the possibility of a relaunch.

If the company you work for goes bankrupt, it is very likely that the receiver will terminate your employment contract. This is because otherwise the debts will increase even further. Usually, terminating employment contracts is one of the first things the receiver does. In a bankruptcy, no dismissal permit from the UWV or permission from the court is needed. Also, the dismissal protection for sick and pregnant employees expires. However, the trustee does need permission from the supervisory judge (who oversees the winding-up of the bankruptcy) to give notice. Usually, the trustee gets this permission.

The receiver is obliged to notify the relevant employee organisations with members in the company if 20 or more employment contracts are terminated. The liquidator is also obliged to seek prior advice from the works council. Both actions are mandatory even if the receiver wants to close or transfer the bankrupt organisation.

Even after the bankruptcy is declared by the court, work in the organisation continues. You will remain employed until your employment contract is terminated by notice after the end of the notice period. Ongoing projects are continued as much as possible and financial administration must be completed. You therefore carry out your work as long as your employment contract runs.

In principle, the notice period agreed with you or the statutory notice period applies. In bankruptcy, however, the notice period never exceeds six weeks. This is the legal maximum in a bankruptcy. There is an exception for employees who were 45 or older on 1 January 1999 and who were already employed by the (now bankrupt) employer on that date. For these employees, a longer notice period continues to apply if it was applicable on 1 January 1999.

If you want to terminate your employment contract yourself, the notice period of up to six weeks also applies. You send the letter of notice to the receiver, not to your employer. Do you want to leave your old employer sooner, for example if you can immediately start working elsewhere? That is usually not a problem in a bankruptcy. Agree on a shorter notice period with the liquidator. Note: do you not have another job yet? Then you may not be entitled to WW benefits if you terminate the employment contract yourself. It is advisable to seek legal advice first.

Employees who are still owed wages by their employer are creditors of the bankrupt company. There is a clear hierarchy of debts in bankruptcy: certain debts are paid before others. Are there any back wages or wage claims that arose before the bankruptcy was declared? If so, this is a so-called preferential claim. You can file this claim with the trustee and the UWV. It is settled before the non-privileged debts are paid. Incidentally, this does not only concern wages, but also, for example, holiday pay for holidays you took before the employer went bankrupt. The wage claim that arises after your employer is declared bankrupt falls under an ordinary estate debt. Here, you do not have priority as a creditor.

If the bankrupt employer can no longer pay your wages, you can appeal to the wage guarantee scheme of the UWV. This is a benefit from the UWV that is paid in case of an employer's inability to pay. If your employer is bankrupt or otherwise financially unable to pay your wages, the UWV takes over the employer's payment obligation. It is important that you inform the UWV in good time. Do this as soon as it is clear that your employer cannot pay you and confirm this by letter. You will receive bankruptcy benefits and pension contributions will also continue to be paid until the notice period. In accordance with the law, the UWV will pay:

  • The wages you are still owed for up to 13 weeks before the termination date. This includes back pay, overtime, expense allowances, thirteenth month and atv/adv days.
  • Pay over the notice period up to a maximum of 6 weeks after the notice date (note: a longer notice period may apply to older employees).
  • For up to 1 year before the end of employment: holiday pay, holidays and pension contribution.

An employer may agree in a social plan that employees will receive compensation in case of forced dismissal. Unfortunately, these agreements have little value in a bankruptcy. The employer is bound by the agreements in a social plan, but the receiver is not. Provision of this compensation would be at the expense of other creditors. This would be contrary to the requirements in the Bankruptcy Act; therefore, the Bankruptcy Act does not allow the payment of such compensation.

After the receiver has terminated the employment contract, rights and obligations still remain between the bankrupt employer and the employee. These are known as post-contractual obligations. Did you sign a competition, relationship or confidentiality clause when you joined the employer? These agreements remain in force even after a bankruptcy. The bankrupt employer can release you from these obligations. If he does not do so and these obligations hinder you too much in finding a new job, you can start legal proceedings.

After a bankruptcy, the company or part of it may continue to exist. In that case, there is a relaunch. If the company is transferred to another employer after bankruptcy, in principle there is no 'transfer of undertaking'. Existing employees will therefore not automatically transfer with their contract to the restarting company. The new starter decides with whom he will enter into an employment contract. If he decides not to take over (certain) employees, they will remain in the service of the bankrupt employer until the employment contract is terminated, for example by notice given by the liquidator.

A relaunch often requires major changes and a substantial capital boost. It also requires creditors to be willing to cooperate. Usually, only some of the employees can 'go with' to the new employer. It is common for the receiver to dismiss all employees first. Then some of them get a new offer. Are you among the employees who receive an offer to perform work in the relaunching organisation? If so, this means that you will be offered a new employment contract. You have to re-agree on your salary and terms of employment. Instead of a permanent contract, you may get a temporary contract. Incidentally, you cannot simply refuse a new job with the relaunching employer. If you refuse, the UWV may refuse unemployment benefit.

Sometimes the relaunching employer is considered the successor to the bankrupt employer. With successor employers, there are more rights protecting employees. You may then have a firmer employment position than initially thought. Several factors play a role in determining whether successor employer status exists. For example, if you are going to perform exactly the same work as with the old employer. Or if the management remains unchanged. Do you suspect successive employership? Then seek legal advice.

In any future round of dismissals, years of service prior to the bankruptcy will count. If the resumed employer owes a redundancy payment, years of service with the bankrupt employer may count when determining the amount of severance pay. Your years of service also count when determining the notice period. Furthermore, you are entitled to an open-ended employment contract if you have worked for the bankrupt employer for two years or more, even if the relauncher offers you a one-year contract.

 

Employers sometimes face important decisions. It is then advantageous to have professionals on the works council (OR) who can exert influence. They have essential knowledge for modern management and can contribute to motivating staff, resulting in broader support for changes. VHP2 maintains contact with hundreds of employers throughout the Netherlands on matters such as organisational developments and social plans at reorganisations. We strive for short lines of communication with our members in the Works Council.

A works council is the participation body within a company. Every employer with at least 50 employees must establish a works council. The works council has important powers such as the right to information and the right to give advice. For example, an employer cannot reorganise without advice from the works council, nor introduce certain regulations without their consent.

The Works Council consists of employees of the company, i.e. your colleagues. They are elected through elections, in which you can participate if you have been employed for at least six months.

In case of upcoming elections, the OR notifies VHP2. You will then receive an invitation to stand as a candidate. For more information you can contact via info@vhp2.nl.

The rights and duties of Works Council members are laid down in the Works Councils Act (WOR) and in the Works Council regulations. Sometimes additional rights are included in the collective agreement, such as the right to training and attending meetings with pay. Protection against dismissal is an important right, although it does not exclude all possible grounds for dismissal.

The works council can request information from the employer on your behalf. Besides the right to advise and consent, the Works Council also has a right to information. If you think there are irregularities in your department, you can approach the OR.

Yes, you can join a union during your term of office without it affecting your position in the OR. However, during OR elections, a union member cannot submit his own free list if the union has already submitted a list of candidates.

If your employer wants to reorganise, it should always seek the advice of the works council (OR). The OR can best advise if it is well informed about everything that goes on in the department being reorganised. Therefore, pass on signals to your works council at an early stage. If a company does not yet have a social plan, it is necessary for the employer to conclude a social plan with the trade unions to deal with the adverse consequences of a reorganisation.

A reorganisation is a major change that often involves personnel consequences. A company may have financial or organisational reasons to carry out a reorganisation. This may lead to job changes or even redundancies of employees.

Your employer must always seek advice from the works council when reorganising. The works council can best advise if it is well informed about everything going on in the department being reorganised. It may be necessary for the company to enter into a social plan to deal with the personnel consequences of a reorganisation. A social plan is agreed between the employer and employee organisations and contains agreements to cope with the consequences of a reorganisation, merger or bankruptcy for the employees as best as possible. Sometimes an ongoing social plan has already been concluded with the employee organisations.

An employer decides which activities it wants to carry out as an entrepreneur. Therefore, an employer can also decide to terminate certain parts of a business. He will then need the advice of his works council. If the termination of production leads to job losses, it is usual for the employer to agree a social plan with the workers' organisations.

It is wise to report this directly to VHP2. Look for more information at contact or mail to info@vhp2.nl. It is important that your signal reaches VHP2. If there is no social plan yet, the negotiator together with the other workers' organisations will make efforts to agree on a social plan with your employer.

Generally, the collective agreement sets out your rights. For example, your employer must observe a notice period. A social plan sets out the rights and obligations of employer and employee. For instance, it states what the employer must do to assist you in finding other work and what your claims to salary guarantees are. When agreeing on a social plan, efforts are made to prevent forced redundancies as much as possible. In the unlikely event that this does not succeed and you are actually dismissed without having found other work, you are usually entitled to unemployment benefits. Some collective agreements also provide for an unemployment benefit above the statutory minimum.

Your employer is obliged to investigate whether you can be reemployed in another position. If this is not possible, in extreme cases, your employer can apply to the UWV for a dismissal permit. In case of dismissal, employees are entitled to severance or transition compensation. What exactly applies in this type of situation can vary from company to company and from employee to employee. It is therefore important to seek legal support at an early stage in the event of a reorganisation.

Collective dismissal is not likely to come up, as social plans try to avoid forced redundancies wherever possible. Should it do come up, your employer can only resort to collective dismissal if it wants to lay off 20 or more employees within 3 months. It does not matter how the employer arranges the dismissal: through the UWV, the courts or by mutual agreement. In that case, your employer must comply with the Collective Redundancy (Notification) Act. This entails the following:

  • The employer must report the collective dismissal to the UWV and the employee organisations with members at the company.
  • The employer must consult the trade unions on the proposed redundancies. This implies consultation with the workers' organisations on the plans.
  • In addition, the employer must also consult the works council.
  • When making redundancy selection, the employer must apply the principle of separation by numbers.

The multiplier principle is a legally prescribed selection method that employers must apply when dismissing employees for economic reasons. The multiplier principle requires the employer to divide all employees working in a category of interchangeable jobs into five legally defined age groups. For each age group, the person with the shortest employment is then proposed for dismissal first, keeping the age structure before and after dismissal as similar as possible. The five age groups are:

  • Workers aged 15 to 25.
  • Workers aged 25 to 35.
  • Workers aged 35 to 45.
  • Workers aged 45 to 55.
  • Employees from 55 years of age to state pension age.

Reflections do not include workers on temporary contracts, agency workers and workers who have already reached the state pension age. Employers should let temporary contracts expire and not extend them.

At VHP2, we also focus on safeguarding the interests of high-tech professionals during reorganisations. Together with employers, we aim to develop social plans that minimise the impact on our members and support them in transitions to new work situations. Below are frequently asked questions about social plans.

A social plan is a document containing agreements between employers and employees (representatives) on the consequences of reorganisations, such as dismissal, redeployment and retraining. The aim is to minimise the impact on employees and support them in the transition to a new work situation.

In the high-tech industry, reorganisations and changes are commonplace due to rapid technological developments. A social plan provides security and support to employees affected by these changes, such as in the event of dismissal or redeployment.

A social plan can cover various topics, including:

  • Severance payments: Financial compensation for workers who lose their jobs.
  • Relocation: Guidance and support in finding a new position within or outside the company.
  • Retraining and training: Opportunities for upskilling or retraining to enhance workers' employability.
  • Outplacement: Help in finding a new job outside current company.
  • Financial arrangements: For example, a supplement to unemployment benefit.

A social plan is usually drawn up in consultation between the employer and employee representation, such as the trade union VHP2. This often happens during collective bargaining negotiations or specific reorganisations.

VHP2 represents the interests of its members during social plan negotiations. The union ensures that the agreements are fair and the interests of employees are protected. VHP2 also provides support and advice to its members during the process.

Members of VHP2 benefit from:

  • Advice and support: Legal advice and guidance on social plan implementation.
  • Bargaining power: VHP2 negotiates on behalf of its members to achieve the best possible terms.
  • Access to knowledge and networks: Information on rights and obligations and access to a wide network of professionals.

If your employer has drawn up a social plan in cooperation with employee organisations, this social plan can usually be found on your organisation's intranet.

This depends on the agreements in the social plan. Sometimes the social plan states that compulsory redundancies are only possible after consultation with employee organisations, possibly through an open break clause, which allows the unions to exert influence. It may also be the case that compulsory redundancies are not ruled out, but that the employer will make every effort to avoid them. It is therefore always wise to consult your employer's social plan.

If you are a member of VHP2 and we have not signed the social plan, you are not bound by the social plan. However, this does not mean that your employer does not have to apply the social plan to you if a social plan has been agreed with other employees' organisations or the works council. Your employer is obliged to apply the social plan to all employees.

Accepting a transfer to another location is not always mandatory. Usually, the limits for transfer are stated in the social plan, such as travel time and travel distance. Generally, the limits set by the UWV are used: 1.5 hours travel time one way commuting by public transport. Sometimes other limits may be indicated in the social plan. It is therefore wise to check your employer's social plan.

Yes, you are obliged to cooperate in finding other work if this has been agreed in the social plan. This is also a requirement of the UWV to qualify for WW benefits. If you do not actively cooperate, the UWV may deem you 'culpably unemployed', putting you at risk of not receiving WW benefits. You should therefore actively look for other work, both within your own organisation and with other employers.

No, you don't have to. Your employer can agree an ongoing social plan (also known as a social policy framework) with workers' organisations. Sometimes your employer is obliged to do so under the collective agreement. This continuous social plan then applies to every reorganisation during its term. If there is no agreement on a social plan or if your employer is declared bankrupt, there is no social plan.

Yes, you can ask for another agency. It is also in your employer's interest that you find another job quickly. However, your employer may set limits on the cost of such an agency.

Often the social plan includes where to turn if you think it is not being properly complied with. Often, an advisory or guidance committee is set up with representatives of the employer and employee organisations, headed by an independent chairman. You can go to this committee if you have doubts about the correct application of the social plan.

 

If no such committee has been set up, you can contact VHP2 for legal support.

As a member of VHP2, you can think along and participate in discussions about the contents of a social plan. You can participate in sounding board groups, and vote on proposals as a member of VHP2.

If you have questions about a social plan, you can contact VHP2. They offer comprehensive information and support through their knowledge base and by direct contact with their experts.

A social plan is an essential tool to deal with the consequences of reorganisations in the high-tech industry. VHP2 plays a crucial role in protecting the interests of high-tech professionals and offers comprehensive support and advice to its members. By becoming a member of VHP2, you can benefit from their expertise and network to support and protect your career.

The WTP is a new pension law that came into force on 1 July 2023. This law revises the Dutch pension system with the aim of making it more transparent, flexible and personalised.

  • Switch from defined benefit to contributory contracts
  • Introduction of personal pension pots
  • Abolition of the average system
  • New rules for survivor's pension
  • Greater flexibility in retirement

Pension funds have until 1 January 2028 to adapt their pension schemes to the new law. The exact transition date varies by pension fund.

Your accrued pension rights are converted into personal pension assets. This process is called 'raking in'. The value of your pension remains basically the same, but the form changes.

This cannot be said with certainty. Under the new system, your pension may rise faster when the economy is doing well, but may also fall faster when things are worse. Pensions are expected to rise more often and sooner than under the current system.

For most members, the premium will remain the same. However, the premium will become the same for all ages (age-independent). This may mean a change for some age groups.

The WTP offers more flexibility around retirement. For example, you can retire earlier with a lower pension or work longer for a higher pension. You can also choose to take up to 10% of your pension earlier.

There will be uniform rules for survivors' pensions across all pension providers. This will provide more clarity on what survivors can count on in the event of their partner's death.

Your pension fund is obliged to regularly inform you about the transition to the new pension system. You will receive personalised information about the impact on your pension.

Keep a close eye on your pension fund's communication. If you have any questions, you can always contact VHP2 for advice and support. VHP2 will continue to represent the interests of its members during this transition period.

For more information, please visit your pension fund's website, the central government website on the WTP (www.werkenaanonspensioen.nl), or at VHP2.