In the first half of 2025, the Netherlands saw a noticeable rise in collective layoffs across different industries. During the first quarter, 82 companies announced plans to cut 20 or more jobs. This is a big increase compared to the 59 companies that made similar announcements in the same period last year. In total, more than 4,700 workers are expected to lose their jobs- an increase of almost 5% from the previous year.[1]
Most of these planned redundancies are coming from the industrial and business services sectors. Companies in these areas are focusing on restructuring and cutting costs, leading to the larger number of layoffs.
This wave of job cuts has raised concerns about job security, severance pay, and employees’ rights. As major companies move forward with these plans, there are growing questions about the impact on the Dutch job market and how well affected workers will be able to recover.
The emotional toll of job loss
Losing a job is more than just the loss of income; it’s a disruption to one’s life, family, and future. The impact is even more profound for expats who moved to the Netherlands for promising career opportunities, only to face sudden unemployment. Many expats build their entire lives around their jobs, making the loss particularly unsettling. Navigating this unexpected change can be both emotionally and practically challenging, especially in a foreign country with different employment laws and regulations.
Understanding collective redundancies in the Netherlands
Under Dutch employment law, collective redundancy is defined as the dismissal of at least 20 employees within a three-month period in the same working area.
Employers planning such layoffs are legally obligated to follow strict guidelines, including notifying and obtaining permission from the Employee Insurance Agency (UWV), consulting with trade unions, and informing the works council if one exists. Additionally, Dutch law mandates that employers adhere to statutory waiting periods before proceeding with dismissals. Non-compliance with these obligations can lead to legal challenges, potential reinstatement of employees, or financial penalties for the company.
These regulations are intended to protect employees’ rights and promote transparency throughout the redundancy process.
For employers, executing a collective redundancy is not only labour-intensive but also carries the risk of the UWV rejecting the termination requests if procedural mistakes are made or if the justification is deemed insufficient.
As a result, many companies attempt to avoid this route altogether.
Negotiating a fair exit
Rather than following the complex UWV procedure, many employers opt to negotiate severance agreements directly with affected employees. This method, known as a Settlement Agreement (in Dutch: Vaststellingsovereenkomst), allows both parties to mutually agree on the terms of the termination, including financial compensation, notice periods, and potential outplacement services.
Often, this negotiated route results in better financial terms for the employee, as companies are motivated to reach a mutual agreement quickly and avoid lengthy legal processes. However, understanding your rights, negotiating fair terms, and planning your next steps can feel daunting; especially when faced with legal jargon in a foreign language.
Getting the right support
Navigating a layoff process can be challenging without the right support. The good news is you don’t have to navigate this process alone. Professional assistance is often available and sometimes even covered by the employer. This can include e.g. the costs of employment law mediators and lawyers, who help clarify your options, negotiate on your behalf, and secure a fair settlement.
For expats, finding the right legal support that speaks your language and understands the nuances of Dutch employment law can be particularly difficult. Recognizing this gap, Sabine Imdahl, a Dutch-qualified mediator and lawyer (since 2013) founded Counselr.nl. Counselr connects expats with experienced, multilingual legal professionals across a broad spectrum of legal areas, including employment law, who can advocate for your rights and provide the clarity you need.
Visit Counselr.nl and empower yourself.
[1] https://www.uwv.nl/nl/nieuws/minder-faillissementen-maar-wel-meer-reorganisaties-in-1e-kwartaal-2025
This is a sponsored post – text and image provided by Counselr.nl