17 March 2025
Under the Dutch Collective Dismissal Notification Act (WMCO), you are required to notify the Employment Insurance Agency (UWV) of the dismissal of 20 or more employees within three months. In this blog, we share some practical tips.
Previously, we published a blog featuring a practical step-by-step guide for employers dealing with reorganizations. We have also addressed reorganizations in general. In addition to that, we want to highlight an important notification obligation when dismissing 20 or more employees, which stems from the WMCO.
All proposed economic dismissals within a three-month period count towards the WMCO, even if they are arranged through a settlement agreement based on mutual consent. The review period for the UWV is three months, and the geographical area is limited to the work area of the UWV office. This means that if two small reorganizations occur in quick succession within your organization, you may still meet the WMCO minimum. However, this does not apply if the reorganizations involve two different locations that fall under different UWV work areas. For more information, refer to the UWV’s guidelines on work areas.
Only employees whose employment contracts are intended to be terminated are counted. Employees who can be redeployed are excluded from the WMCO obligations. Additionally, employees who voluntarily resign do not count towards the WMCO.
According to Article 3 of the WMCO, you are required to inform trade unions of your intention. The unions have two weeks to respond to your notification. If they do not respond, you have fulfilled your notification obligation.
It is possible that the trade unions may wish to negotiate a social plan with you. While you are not obligated to reach such an agreement, it is advisable to engage in discussions. In some cases, an employer may be required to do so.
If you cannot reach an agreement with the unions, there is a one-month waiting period starting from the date of notification. After this period, you may proceed with the dismissals.
If you plan to request permission from UWV to terminate employment contracts, it is crucial that you have made the WMCO notification. Otherwise, the UWV will not process your dismissal application, which could lead to significant delays in your reorganization.
Do you have questions about making a WMCO notification or other aspects of a reorganization? Please contact the employment law attorneys at GMW advocaten.
