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Settlement agreement, transition allowance, dismissal

Employer and employee discussing redeployment before dismissal

How does the redeployment obligation work before dismissal?

Before dismissal, the employer must in many cases investigate whether the employee can be redeployed to another suitable position within a reasonable period.

Redeployment must be investigated seriously

A reasonable ground for dismissal is often not sufficient. The employer must also demonstrate that redeployment within a reasonable period is not possible or cannot reasonably be required, with the aid of training where necessary.

The obligation applies to many dismissal grounds, including economic grounds, underperformance and a disrupted employment relationship. Redeployment may not be appropriate where the employee has engaged in culpable conduct.

Investigate first, dismiss second.

The employer must show specifically which suitable opportunities were considered and why redeployment was not possible.

Discussing another suitable position

When is a position suitable?

A suitable position must be consistent with the employee’s education, experience and abilities. A position for which the employee can become suitable through reasonable training within the reasonable period may also qualify.

The employer must consider existing and expected vacancies, as well as suitable positions occupied by certain flexible or external workers. Short-term temporary work may be disregarded.

Where must the employer look?

The scope of the investigation depends on the organisation. A general vacancy list is usually not sufficient.

Within the undertaking

  • All of the employer’s locations.
  • Vacancies that exist now or arise within the reasonable period.
  • Suitable positions occupied by flexible workers who must make way under the applicable rules.
  • Opportunities made possible through reasonable retraining or additional training.

Within a group of companies

  • Other companies within the group may also have to be considered.
  • For international groups, opportunities abroad may be relevant.
  • Interest in work elsewhere must be discussed in practical terms.
  • The employer must be able to substantiate the choices made and the outcomes.

How far ahead must the employer look?

As a general rule, the reasonable redeployment period corresponds to the employer’s statutory notice period. Depending on the length of service, this is generally one to four months. According to Dutch government guidance, a period of 26 weeks applies to an employee with a disability.

The precise starting point depends on the dismissal route. In a UWV procedure, the period generally begins when UWV grants permission for dismissal.

Training must relate to a concrete opportunity

The employer does not have to provide training without a specific purpose. Training becomes relevant where it can make a concrete suitable position attainable within the reasonable period.

A careful investigation in six steps

Both employer and employee benefit from a concrete and verifiable process.

1. Map the positions and the period

Determine which positions are suitable and which vacancies will arise within the reasonable period.

2. Discuss preferences and opportunities

Ask the employee about experience, availability, interests and possible training.

3. Investigate the entire organisation

Do not restrict the investigation to the employee’s own department or location without good reason.

4. Assess training specifically

Record what training is required, how long it will take and whether redeployment will then be realistic.

5. Make a clear offer

Where a suitable position exists, describe the role, location, hours and conditions with sufficient specificity.

6. Record the investigation and response

Document the vacancies reviewed, discussions, considerations, offers and responses.

What does standard wording in a settlement agreement mean?

A settlement agreement often states that redeployment is not possible or has produced no result. Such wording does not in itself prove that a careful investigation was actually carried out.

Because a settlement agreement is voluntary, an inadequate redeployment investigation may influence the decision not to sign or to negotiate better terms.

Check before agreeing

Ask which positions were investigated, which period was used, whether other locations or group companies were considered and why training would not provide a solution.

For employees

Identify specific vacancies, relevant experience and training opportunities in good time. Ask for the results of the investigation and give a reasoned response to suitable proposals.

For employers

Actively conduct the investigation in a transparent and demonstrable manner. Involve the employee and substantiate why positions are or are not suitable.

Read more

Redeployment is closely connected with the dismissal ground and the procedure chosen.

About the author

Mr. Edwin van Jaarsveld

Edwin van Jaarsveld has over 20 years of experience with dismissal cases and regularly publishes about them.

Edwin’s expertise can also be found on:

Has redeployment been investigated inadequately?

Have the file, available positions and proposed termination arrangement assessed before the procedure or negotiations are concluded.

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