As of 1 July 2025, the Dutch labor office (UWV) has updated its implementation rules for dismissals due to business or economic reasons. These rules guide employers through the dismissal approval process, including the legal framework, required documentation, and assessment criteria. While most provisions remain unchanged, a new Chapter 6 has been added, specifically addressing dismissals in the context of a transfer of undertaking.
The updated rules apply both when formally requesting dismissal approval from the labor office and when negotiating termination agreements. Even in mutual termination cases, employers must justify the economic rationale for eliminating a role.
Chapter 6 states when dismissals are allowed during or after a business transfer. In principle, employees cannot be dismissed solely because of the transfer. However, downsizing may be permitted if there are valid economic, technical, or organizational (ETO) reasons. The chapter outlines:
- When a transfer of undertaking is considered to exist.
- What information must be provided by both the transferring and acquiring entities.
- How the timing of the transfer and dismissal request affects the labor office’s assessment.
- When a formal opinion by the labor office on the transfer may be required.
These revised guidelines replace the April 2023 version.