Settlement agreement, transition allowance, dismissal
Before dismissal, the employer must in many cases investigate whether the employee can be redeployed to another suitable position within a reasonable period.
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.
The employer must show specifically which suitable opportunities were considered and why redeployment was not possible.
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.
The scope of the investigation depends on the organisation. A general vacancy list is usually not sufficient.
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.
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.
Both employer and employee benefit from a concrete and verifiable process.
Determine which positions are suitable and which vacancies will arise within the reasonable period.
Ask the employee about experience, availability, interests and possible training.
Do not restrict the investigation to the employee’s own department or location without good reason.
Record what training is required, how long it will take and whether redeployment will then be realistic.
Where a suitable position exists, describe the role, location, hours and conditions with sufficient specificity.
Document the vacancies reviewed, discussions, considerations, offers and responses.
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.
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.
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.
Actively conduct the investigation in a transparent and demonstrable manner. Involve the employee and substantiate why positions are or are not suitable.
Redeployment is closely connected with the dismissal ground and the procedure chosen.
Have the file, available positions and proposed termination arrangement assessed before the procedure or negotiations are concluded.
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