European Restructuring Monitor (ERM)
Eurofound's ERM database on restructuring-related legal regulations provides information on regulations in the Member States of the European Union and Norway which are explicitly or implicitly linked to anticipating and managing change.
7:681 and 7:682 Civil code, 4 and 9 of the Royal decree on dismissals
Conditions for annulment of dismissal
The court may annul the termination of the employment relationship by the employer if, within a period of 26 weeks after the termination of the employment relationship, the same position is given to someone else, or a new vacancy is created which is almost the same or comparable, and the employee has not had the chance to get this job (either directly by the employer or through a temporary work agency). The employee can choose between reemployment or financial compensation.
Assessing the possibility of reemployment
In assessing whether a collective dismissal permit shall be granted by the public employment service, it has to be checked whether to-be-dismissed employees can be placed in suitable positions elsewhere in the company. These positions include positions that are currently vacant, or are expected to be vacant within 26 weeks, as well as positions that are currently filled by workers with a form of flexible contract that expires within 26 weeks, or workers who will reach the retirement age within that period. If the employer is a subsidiary of other companies, positions in those enterprises will also be considered. A position is considered suitable if it is compatible with the employee's education, experience and competencies. If one of these conditions were present and a permit was granted, an employee can apply for reemployment or financial compensation retroactively.
The maximum number of employees (measured in working hours) that can be dismissed is the number of full-time equivalent positions that is removed. The employer has an obligation to offer one or more redundant employees a continuation of their labour contract for the remaining working time if the working hours of the redundant employees exceeds this maximum. This is only the case when the remaining vacant positions fit employees' competencies.
Employer organisations have expressed that it is not always possible for employers to assess whether positions are suitable for current workers, or whether positions are expected to be vacant in the coming 26 weeks, especially in sectors with strongly fluctuating demand. Consequently, according to employer organisations, reemployment obligations are sometimes difficult to execute for some employers in some sectors.
Eurofound (2015), Netherlands: Reemployment obligation after restructuring, Restructuring legislation database, Dublin, https://apps.eurofound.europa.eu/legislationdb/reemployment-obligation-after-restructuring/netherlands
Between the end of 2022 and the first half of 2023, almost 300,000 employees working for ‘big tech’ companies were laid off across the world, making headlines for months in global media. This development has been a shock, considering the high numbers of jobs in well-known tech corporations with a reputation for offering good working conditions and well-paid positions.
The retail banking sector is fertile ground for studying the impacts of digitalisation on work and employment. Financial services are increasingly provided online, without the intermediary of customer-facing institutions. Many banks in the sector have been undergoing serial restructuring since the global financial crisis, and it is one of the few service sectors with stagnant or declining employment.
Since 2011, the Restructuring support instruments database of the EU PolicyWatch has been collecting information on measures that assist companies and workers to anticipate and manage restructuring. This article looks at measures in the database aimed at supporting employees and employers during the COVID-19 pandemic (2020–2022).
Eurofound’s European Restructuring Monitor database reveals the impact of the energy crisis on employment in the EU. Following Russia’s invasion of Ukraine in February 2022, energy prices have hit record highs. The European Commission imposed sanctions and limitations on the import of oil and gas from Russia, which has reacted by reneging on supply commitments to many Member States.
