14 September 2018

New UWV Implementation Rules regarding dismissal on economic grounds

As per 1 August 2018, the Implementation Rules regarding dismissal on economic grounds of the Employee Insurance Agency (UWV) have been revised. We highlight two significant changes in the UWV Implementation Rules that apply to international situations.

The reassignment obligation

An important addition concerns the reassignment obligation within an international group of companies. The employer has an active role in investigating whether the employee can be reassigned to another suitable position. The employer must demonstrate which vacancies are currently available, and which are expected to arise within a reasonable period. If the employer is part of an international group, the employer must also list the vacancies and positions of ‘place makers’ in foreign group companies when applying for dismissal on economic grounds, unless the employee has limited his availability based on, for example, maximum traveling time or distance. In that case, the employer must add a document that proves the employee’s limited availability.

Order of dismissal and ‘age proportionality’

The UWV Implementation Rules introduce a new paragraph on how the dismissal order and ‘age proportionality’ must be determined in an international situation. The UWV is only competent if an employee has an employment agreement to which Dutch law applies, which means the employee’s nationality or his country of residence is not relevant. Dutch law can also apply by choice of law in the employment agreement.