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People-centered transformation and reorganization

Steps to take prior, during and after a reorganization process based on business economic reasons.
Whether you are growing, shrinking or taking a new direction as an organization – the way we work continues to change. As soon as the work has to be organized differently, it impacts both the business and the people. Partly because of this, the word reorganization often has a negative connotation. But a new direction also means new opportunities. You want employees to believe in the new course and move in the right direction. And does it still end for an employee? Then you want the guidance to be as good as possible. All this requires more than just knowledge and a plan. It requires leadership, clear communication, sensitivity and people orientation.

Focus white paper

Reorganization is a comprehensive process in which various aspects must be taken into account.
The purpose of this whitepaper is to help hr professionals get started in preparing and implementing a reorganization. This whitepaper focuses on the substantive aspect of reorganizing in the form of a step-by-step plan. How do you ensure that the reorganization is successful? What do you all need to consider? After reading this white paper, HR professionals will know all the actual steps to take in order to implement a successful reorganization.
As mentioned, merely going through these steps will not get you there. A reorganization or transformation begins with a vision. Ultimately, it is the people you want to get on board. What distinguishes Rvdb? “We are good at the upstream, as well as sensitive to the downstream.”

About Rvdb

We think HR can do things differently.
Innovative, agile and influential. We are professionals with guts who dare to break the status quo. With an eye for individuals and teams in the organization. Because people make the difference. Rvdb searches, selects, connects and develops people in the hr profession.
Our paths cross at different times in your life when it comes to your development and work in hr, or as a client. Should you not know us, we make every effort to get in touch with you. We want to know who you are and what you want. And we believe there is more to you, your team or organization than you think.
How well do we already know each other? Want to know more about Rvdb’s approach to transforming and reorganizing? If so, please contact us without obligation by sending a message to info@rvdb.nl or calling

 

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Timeline
Timeline

Structure of the white paper

This whitepaper helps organizations map out the steps and actions taken to prepare for, during and after a reorganization. The roadmap in this whitepaper is structured according to five phases, namely [1] the reorganization plan, [2] the request for advice, [3] design and frameworks, [4] the implementation and [5] the conclusion of the reorganization. See the illustration above for an overview.
We take you in chronological order through the five phases and the corresponding steps. We will also show you which considerations and choices have to be made in a reorganization process and how these influence the further course of the reorganization. In addition, we provide tips and additional points of interest for a structured and successful reorganization. These can be found in the separate boxes, marked with “tip”, “food for thought” and “watch out”.
For support before, during or after a reorganization, our business consultants and/or hr interim professionals are at your service. Would you like to contact us without obligation? Call us at or mail to .
The visual reorganization process below shows both the key stages from the substantive process and the key stages from the more people-oriented, emotional side of the process.
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Model

More explanation please!

During change, you are always dealing with an upper and lower current. These two currents are crucial in implementing a change. First, reorganization comes in many different forms. A common goal of reorganizations is to cut costs.
However, reorganizations can also serve a different, more organizational and/or strategic purpose. For example, reorganizing to better respond to (technological) developments, or implementing a new way of working. Such reorganizations involve much more consideration of how processes will run and how departments will work together. A reorganization can also have a culture change as its goal. In that case, it is important to tackle the change much more together with the employees. In other words, the type of reorganization determines the path chosen and the choices and steps made during the reorganization process.
This white paper focuses specifically on the steps and choices to be taken in the event of a reorganization resulting from (acute) financial necessity, in which (forced) redundancies are most likely unavoidable.
Second, we like to emphasize that organizational change has two main currents: the upper and lower stream. The upper stream includes the substantive, process-oriented and manageable side of organizational change. The undercurrent contains the more people-oriented, emotional side of change. These two currents are inseparable and continuously influence each other. A successful reorganization therefore not only stands or falls with a good preparation and implementation of the substantive side of the reorganization, but also requires managing the emotional side of the reorganization. Communication is the key word here. We therefore recommend at all times that a separate communication plan be drawn up in preparation for a reorganization.
In this white paper, we look in particular at the practical and legal steps that need to be taken. Communication is so important that we cover it in the webinar “Communicating in Reorganizations.” Want to know more? Email us at .
“The type of reorganization determines the path chosen and the choices and steps made during the reorganization process.”

PHASE 1: PREPARATION AND REORGANIZATION PLAN

Preparation for a reorganization begins with the preparation of a reorganization plan. The reorganization plan specifically states why the reorganization is necessary, with a (numerical) substantiation and justification of the intended reorganization. It also explains the route to be taken and the consequences for employees.
A reorganization plan helps to get the necessary information and data in order to take the next steps. Think of the request for advice for the Works Council, (possibly) notification of collective dismissal and the request for dismissal at the UWV. In addition, the reorganization plan plays an important role in getting stakeholders on board with the change.
Steps 1 through 6 below further explain the steps to be taken, to arrive at the reorganization plan.
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Phase 1
Phase 1

Step 1: Establish the “purpose” and “why” of the reorganization

Before starting to prepare a reorganization plan, you put together a project team with which to prepare and execute the process of reorganization. Establishing the purpose and why of the reorganization is something you do as management with a project team. At the beginning of the reorganization, consider who should be represented on this project team. In most cases, the core team is a small group including a number of directors or managers, finance and hr.
Keeping the core team small ensures confidentiality. In the first meeting, discuss how you will consult, ensure confidentiality and divide tasks (who does what). Reorganization must serve a purpose. The goal should be clearly defined because it is a common thread throughout the reorganization process. Both on the substantive technical aspect, and on the people-oriented, personal aspect. The description of the purpose of the reorganization, forms the first part of the reorganization plan.
Mapping the “purpose” and “why” of the reorganization can be approached in several ways. One method that we recommend at all times is to make a visualization of the desired situation after reorganization. This allows you to discover what the organization is doing well and how this will look in the new organization. Two tools that HR can use for this are Organizational Design and Strategic Personnel Planning. Prior to a reorganization, think carefully about what the desired organizational structure should look like.
Using Organizational Design and/or Strategic Workforce Planning helps identify fundamental issues for the structure of the new organization, such as which functions are critical/critical and which functions you will need in the future. By properly mapping these issues in advance, you not only make more strategic choices during the implementation of the reorganization, but you also reduce the risk that another reorganization will be needed in the near future to keep the organization future-proof.
Food for thought
The interpretation of an Organizational Design or Strategic Workforce Planning is always customized. After all, the way an organization is structured and operates is unique to each organization. For more information visit the website of the Consultancy team from Rvdb. On our website is more described about Strategic Workforce Planning including concrete cases.

Step 2: Create a realistic time plan for the reorganization

The key to a “successful” reorganization process is communication and planning. Everything depends on clear and honest communication. Experience shows that it is better to provide clarity during a difficult time even if you have a negative message. Unclearness creates unrest resulting in a lack of trust and an increase in individual assumptions. In our we cover the three stages of communication during a reorganization process. Want to know more? Email us at
In addition, doing what you say is an important factor. For this reason, create a realistic time schedule that can be communicated to employees. An example of a visual time schedule for the reorganization process is shown above.
Keeping the core team small ensures confidentiality. In the first meeting, discuss how you will consult, ensure confidentiality and divide tasks (who does what). Reorganization must serve a purpose. The goal should be clearly defined because it is a common thread throughout the reorganization process. Both on the substantive technical aspect, and on the people-oriented, personal aspect. The description of the purpose of the reorganization, forms the first part of the reorganization plan.
What steps should you absolutely not forget in time planning? As discussed under step 1, developing the new Organizational Design is an important step. Yet in practice, we regularly see that companies take too little time to think about this properly. Which can result in your organization remaining in a continuous state of reorganization.

Step 3: Establish the legal basis of the reorganization

The moment there is a reorganization in which dismissal is requested from the UWV, you need to determine the reason for the reorganization. This determines the route to be taken, the information to be provided and the choices to be made.
Economic and social developments in society can have such an impact on your organization that it leads to having to be more cost-conscious and efficient. In a reorganization with the above motive, you end up with the basis “reorganization for business economic reasons”. Some circumstances are:
Looking for another basis for reorganization? You can find an overview of the bases for reorganization on the UWV website.

Step 4: Gather the necessary data and make an indication of the content of the reorganization

To successfully reorganize, the right data must be identified. Think of personnel data and (financial) data to support the necessity and reason for the reorganization. But also a picture of the desired organizational structure after the reorganization, which functions will return in the new organization, which functions will change radically and within which functions jobs will be lost. You also determine how to deal with staff who become redundant. In step 4a and 4b the various aspects are explained in sub-steps. Parts of these are also included in the request for advice that is submitted to the Works Council.

Step 4A: House in order = data in order

To substantiate the “why” of the reorganization, it is necessary to prepare various financial reports. These include annual reports, but also an overview of the austerity measures already taken and a forecast of the financial situation. Exactly which financial data are needed depends on the chosen reorganization ground.
It is also important to have your personnel file in order. It is important that employees are in the system under the correct job title and that this has been confirmed to them. The job description must match the job content. With this, you want to avoid getting into a discussion later in the process when, for example, reducing or eliminating positions. This is particularly common when it comes to generic functions.
It is advisable to split the workforce into five different groups, as shown below in the figure. Group 2-5 is the group that will be included in determining the layoff order according to the layoff principle during implementation. Later in this white paper (step 13), the operation of the attrition principle is explained. Note: keep in mind that certain employees may be subject to dismissal protection (also known as prohibition of dismissal, art. 7:670BW). This includes sick employees, pregnant employees (also during maternity leave), members of the Works Council, employees in military service and employees with a special role. For a complete overview and explanation of notice prohibitions, please visit the website of the
TIP!
It is advisable to agree on a “freeze.” This means that no more mutations/changes may be made as of a certain date. The purpose of this is to keep the process as transparent and fair as possible. You do not want to give the impression that an employee is given a preferential position or, on the contrary, the idea that his/her position is being reduced or eliminated under the guise of the reorganization.
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Frame
Frame

Step 4B: Map the location and impact of the reorganization

It is important in the preparation phase of the reorganization to also identify the impact and consequences of the reorganization. To do this, include the following information in the reorganization plan:
CAUTION!
If the organization has a social plan, it may already include provisions for employees affected by the reorganization. A social plan is an agreement between the employer and one (or more) trade union(s) in which the social and financial consequences of a reorganization are regulated. For example, a social plan may provide for financial support in the form of severance pay, or social support in the form of assistance in finding a new job. It is advisable to name the social plan (if still valid) and related measures in the reorganization plan and include them in the request for advice to the Works Council. For more information on the use and validity of a social plan, see step 10.
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Step 5: Determine the survey date

This step describes how to determine the reference date for dismissal. This serves as the basis for calculating any reduction in staffing and the order of dismissal (see staffing breakdown, step 13). In addition, examining redeployment options is an important part of a reorganization. Why it is a must to identify this and how to approach the redeployment process is explained in step 14.
The UWV uses as the reference date the date on which applications for dismissal are submitted, unless an earlier date can be designated that can reasonably be used by the employer as the reference date.
During the first phase (preparation phase), changes in the workforce often take place. You overcome this by establishing a “freeze.” See step 4a. As an employer, you do not want to have to take any changes in the workforce into account until the dismissal request. In this way you avoid unrest in the organization and as an employer you can pursue a more targeted redeployment policy.
Alternative times for a survey date are:
Determining the cutoff date can make all the difference in the outcome of the layoff and attrition process. Example:
An employee may or may not be eligible for dismissal precisely because his/her birthday causes him/her to fall into a different age category. The reference date is very important in this. Note! There must be an overview of all employees with date of employment, date of birth and position. The exact classification of employees into job groups can also lead to a different outcome. If it can be argued that an employee has a unique function or is indispensable, this can also influence the outcome. It may be worthwhile to make calculations for all the different scenarios according to the separation principle. The UWV has a .

Step 6: Determine whether there is collective dismissal

The moment an employer intends to terminate the employment contracts of at least 20 employees, working in one working area, at one or more times within a period of three months, it is a case of collective redundancy. This is subject to the Notification of Collective Redundancy Act. This means that the organization must report to the and possibly an affiliated union.
Is it a reorganization affecting fewer than 20 employees? Then the above is not an issue.
TIP!
Reorganization announcement. It is advisable to organize the first communication moment with employees toward the end of this first phase of the reorganization process. In other words, the “announcement of the reorganization” (see the image on page 7). It is advisable to shape this communication moment by means of a meeting. This meeting is the very first formal moment in which employees are included in the process of deciding to reorganize. Because each employee will absorb this information in his or her own way, it is important to communicate the message directly and clearly. Be as transparent as possible and share factual information. It is advisable to include employees in the reason for the reorganization, what next steps are on the agenda, and what the process will look like in the coming months using a (visual) time schedule. Among other things, explain that, if applicable, advice will first be sought from an employee participation committee. Finally, inform employees when they can expect the next update.

PHASE 2: THE REQUEST FOR ADVICE

After the reorganization plan is drawn up, it is important to write the request for advice for the Works Council. The request for advice describes the purpose and why the reorganization is being carried out: the intended decision. Both the current and future situation are described. This includes an indication of what the new organization and teams will look like, and what functions will be included. Is there interchangeability between functions (see step 10 for an explanation)? Will functions change dramatically or be eliminated?
It is advisable to include a formation job plan in the request for advice. This is an overview of all functions and formation positions in the new situation, after the reorganization. This plan describes the requirements, content and level of the positions. Steps 7 and 8 discuss the request for advice in more detail.
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Phase 2
Phase 2

Step 7: Inform the works council and, where necessary, unions

If a Works Council (or other form of participation) has been appointed within the organization, you are required to inform them of the proposed decision to reorganize. The Works Council acts as a beacon and point of contact for employees in the organization.
They can make use of two derived rights from the legislation.

When should you inform and/or consult unions?

In all cases, it is wise to involve the Works Council (OR) in reorganization plans at an early stage. Some of the advantages of informing and involving the Works Council early are:
1. The organization can use the expertise of the OR. For example, the OR can highlight circumstances within the organization that the organization was previously unaware of;
2. The OR is more likely to agree to the proposed decision because it is involved from the beginning and therefore has time to understand the background of the reorganization and exert influence;
3. The likelihood of a short lead time between the request for advice and final advice is greater if the Works Council is involved early.
It is therefore preferable to inform the Works Council of the intention to reorganize even before submitting the request for advice, i.e. still in the preparatory phase. After this first moment of communication with the employee participation, the request for advice can be written.
It is therefore preferable to inform the Works Council of the intention to reorganize even before submitting the request for advice, i.e. still in the preparatory phase. After this first moment of communication with the employee participation, the request for advice can be written.
CAUTION! In addition to the above, there may be other forms of participation that you should include in the proposed decision to reorganize. Think for example of the For your organization, therefore, check carefully that you have all the parties to be involved.
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Performance Management
Performance Management

Step 8: Write the advisory request for the works council

Through the request for advice you ask for your opinion on the proposed decision to reorganize. The request for advice has a predetermined structure.
Section 25(3) (Works Councils Act, WOR) describes four components that must be included in the request for advice:
Most of this information is included in the reorganization plan (see steps 1 through 6). The reorganization plan can therefore be used to formulate the request for advice to the Works Council.
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TIPs

PHASE 3: DESIGN AND FRAMEWORKS

In a reorganization with forced dismissal, e.g., the basis for After the preparatory phase, in which the reorganization plan and the request for advice are drawn up, you move on to the phase in which you further shape the reorganization and outline a framework. The UWV describes a number of mandatory steps, which are included in this phase.
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Phase 3
Phase 3

Step 9: Identify the business location where the layoffs will occur

Before a company establishes an overview of FTEs and interchangeable positions, it is necessary to know whether a dismissal request to the UWV applies to the branch or to the company as a whole. In the “Explanatory Notes to the Dismissal Decree,” business establishment is defined as, “Any organizational association acting as an independent unit in society.”
Two components are important here:
1. Acting in society
2. Organizational relationship Under the component “acting in society” is understood: the way in which the unit presents itself to the outside, externally, (socially) and thus is visible to third parties as an independent unit.
Under the section “organizational relationship” is understood: how is the unit (organization) organized, is there internal independence in terms of management or not. A detailed explanation of the meaning can be found at in Chapter 11 of the Dismissal Policy Rules. If it has been determined that multiple business establishments are involved, then a formation plan must be established for each business establishment. Note! Here the list of interchangeable positions cannot differ for each business establishment.

Step 10: Establish job groups and interchangeable positions

In a reorganization in which functions change drastically or reduction takes place and the separation principle is used, the interchangeability of functions must be considered. The interchangeable jobs are clarified by creating function groups. The job groups contain the jobs that are (partially) interchangeable. According to the :
“Functions that are comparable in terms of job content, required knowledge and skills and required competencies, and equivalent in terms of level and remuneration.” When determining interchangeable positions, one can rely on the job matrix of the company regulation or collective bargaining agreement. Note! The actual job performance is decisive, not the official job descriptions. If it turns out that the job description structurally deviates from the actual situation, a different classification can be made.
What matters at all times is the interchangeability of the job, not the employee(s). Thus, it is not the qualifications or broad employability of an employee that is the deciding factor, but the requirements of the position. Under strict conditions, the employer may disregard up to 10% of the employees within a category of interchangeable positions when applying the principle of demarcation. Note! At the beginning of the reorganization process, take a close look at job descriptions and actual work. This can prevent undesirable outcomes in the redundancy process.
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Step 11: Determine the financial impact of reorganization plans

Employee participation wants to have a good idea of the financial impact of the proposed decision to reorganize. If there is a social plan within the organization, you are obliged to use it and discuss it as an option with the employees. Based on the social plan, you make an indication of the financial impact of the reorganization. Consider any severance payments included in the social plan, or compensation for outplacement.
The social plan may have become outdated and/or expired. It is advisable to examine the following points and discuss them with the employee participation body if necessary:
By creating clarity about a social plan and the provisions agreed upon therein for employees, you prevent unrest and ambiguity in the organization. Make the following clear:
The effect of the reorganization leads to long-term wage savings, but may result in the employer having to pay a reasonable amount in the short term under the severance rules. Take into account the other (additional) provisions you as an employer offer to the redundant employees. For example:

Step 12: determining what happens to features

The next step is to determine what happens for each function. Will the function return/not return in the new organization and what will be the totality of FTEs in the new organization. The previously prepared Organizational Design (for the new organization), helps to map the changes in functions in the new organization. This overview also indicates which so-called “resourcing process” applies (mirroring, potential redundancy, direct placement or conducting selection interviews). See an example below. In the next phase, the resourcing processes are explained in more detail.
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PHASE 4: IMPLEMENTATION

When mapping functions from the current organization to the future situation, several scenarios are conceivable. The illustration below describes these scenarios. Whether an employee’s function is still there in the future (new) organization depends on the following:
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Phase 4
Phase 4

Step 13: Resourcing and placement processes.

Depending on the applicable scenario from the previous table, there are several processes to apply that help determine which employees will be placed in the new organization and which employees will be declared redundant. We call these processes the resourcing or (re)placement processes (see image to the right). The sub-steps below explain these processes.
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Step 13A: Direct placement

The moment a position within the current organization remains in the same size and unchanged in the new organization, there is, in principle, direct placement. This means that the employees working in this position are immediately placed in the same position within the new organization. However, a scenario that occurs more often in reorganization for business economic reasons is that the position continues to exist unchanged in the new organization, but not for the same number of jobs. There is then shrinkage/reduction. In that case, the principle of reduction in force is applied, as described in step 13b.
Step 13B: Reflection When there is downsizing/reduction in an interchangeable position, there are only a limited number of spots available in the new organization (initially 20 sales employees in the organization, after the reorganization only 15). In this case, downsizing takes place. The principle of redundancy determines which employees are placed in the new organization and which employees are surplus to requirements. The application of the separation principle works according to the steps below:
Note!
Initially, this may be rounded to the number before the decimal point. At the point when, after adding the numbers per age category, the number of employees to be downsized is still not reached, you should look at the highest number after the decimal point. Do this again by age category, in order from the highest decimal number to the lowest, until the number of employees of the established reduction is achieved.

Step 13C: Supernumerary

When a position from the current organization becomes completely redundant in the new organization, there is potential redundancy. The employees who performed this function are initially declared potentially redundant. This means that the employee is not immediately placed in the new organization. As part of the redeployment obligation, these employees (as well as those declared redundant on the basis of demarcation) are included in the redeployment process. See step 14 for further explanation of redeployment.

Step 13D: Selection interviews.

Has a position changed significantly? If so, selection interviews are conducted. In this process, employees whose positions have changed significantly are given the opportunity to express interest in the new position. Based on competencies and potential, it is then determined whether the employee will be placed in the position.
Example: Suppose that in the new organization the position of Salesperson changes dramatically. In the new organization more is expected of the role of Salesperson, namely that the Salesperson also fulfills the role of Advisor and Administrative assistant (new job title: Sales Advisor). This is not a lapsed function, but a radically changed function. Based on selection interviews, we will determine which of the current employees with the position of Sales Representative have the right potential and competencies for the role of Sales Advisor. The suitable employees from this group are placed first. If there are still vacancies for the Sales Advisor role after this process is completed, other (potentially redundant) employees from the rest of the organization may also express interest or be placed.
Tip! When determining an employee’s suitability for a (new) position, it is advisable to conduct a competency-based interview with any employee who expresses interest. In this you test for the competencies required in the position. A personality test or a pitch by the candidate can also be used for this purpose. It is advisable to have the potential new manager join the interview.

Step 14: Reinstatement

As with any form of dismissal, when an employee is dismissed as a result of a reorganization, the employer has a redeployment obligation. In short, this means that the employer must demonstrate that, before being able to dismiss an employee, it cannot redeploy that employee to a suitable position within a reasonable period of time (with or without training). During a reorganization, it is therefore essential to examine whether employees who are declared redundant are eligible for redeployment within the new organization. This is the case, for example, when there are internal vacancies, possibly created by the reorganization.
However, the redeployment obligation goes beyond simply looking at job openings. For example, there may be a temporary or seconded employee whose position will remain in the new organization. If a permanent employee has been declared redundant on the basis of job rotation, but is deemed suitable for the position now performed by a temporary employee, the redundant employee may be placed in this position or even have to be placed in this position.
Employees eligible for reassignment are as follows:
Employees may be reassigned to a so-called suitable position. A position is suitable when it matches the employee’s capabilities, education and experience. If the organization, is part of a larger concern or (international) group, the test for a suitable position must take place within the entire group. It is then assessed whether the employee is actually suitable for the position.
Note!
What to do with multiple suitable candidates for 1 position (or 4 suitable candidates for 2 positions)? In this situation, the most suitable candidate should not be chosen one-to-one, but priority should be given to candidates with the highest mirroring rights. Also referred to as the reverse principle of mirroring: the suitable employee who, based on mirroring, should be the last to be offered for dismissal, is therefore the first person within the group of suitable candidates entitled to placement in the new position (for an explanation, see the of the UWV).
If there is a valid social plan within the organization, it may also include specific agreements and rules for the (re)placement process. For example, a social plan may include a redeployment period. It is then agreed that the employer will look for a suitable position for the employee within this period. Some social plans also offer (outplacement) assistance to employees, i.e. help in finding a job outside the organization. This is then part of the package offered to redundant employees (see step 15).

Step 14A: Placement, review and objection committee

It is advisable to establish a placement committee for the (re)placement process. This committee normally consists of the (new) managers and a representative from HR. In some cases, the composition of the placement committee is included in the social plan. The placement committee has the authority, in case of potential redundancy, to still place an employee in a suitable position. In addition to the placement committee, it is advisable to appoint a review committee to oversee proper compliance with the resourcing and (re)placement processes. The placement committee is accountable to the review committee for the result and the choices made.
The review committee reviews whether the placement goes fairly. The review committee consists of delegate(s) from the Works Council, HR manager and a delegate from the business.
The members of the review committee cannot be the same individuals as on the placement committee.
The social plan may require the establishment of an objection committee or a disputes committee. When the employee makes use of a hardship clause or when an explanation of the social plan is needed, the parties can turn to the objections committee or the disputes committee. This committee is normally composed of representatives of the employer and representatives of the trade unions involved in drafting the social plan. The employee has the opportunity to submit an objection on which the committee will make a decision. By establishing this committee, both parties are obliged to follow the committee’s decision.
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Food for thought
What if an employee does not want to be rehired? As a result of the reemployment obligation, as an employer you have the obligation to guide someone from job to job. But what if a (potentially) redundant employee is not interested in a different or new position (and thus refuses), but is considered suitable for this position (based on experience, education, etc.). In this situation, you as an employer offer suitable work, but the employee does not want to cooperate. When a social plan is present, it will be decisive in how the employee will be discharged. If there is no social plan and the employee refuses to accept the suitable work, there is a chance that this will be classified as work refusal with all its consequences (Irene van den Berg, 2013) (Nieske Nijkamp, 2018).

PHASE 5: COMPLETION OF REORGANIZATION

After the first three phases have been completed, phase 4, the completion of the reorganization, follows. Steps 15 through 19 describe the steps you go through when an employee is declared redundant, the components that are covered in a placement interview and the final applications or settlements that are made. These settlements are important to take the right line legally. Finally, step 20 concludes with tips for of evaluating the reorganization.
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Phase 5
Phase 5

Step 15: Determine provisions for redundant employees (social plan)

If a social plan applies to the organization, you should follow it. The social plan often includes certain agreements on what the employer offers to redundant employees. Consider the (financial) facilities such as severance pay, but assistance with outplacement, retraining or job training may also be included in the social plan. This usually applies to a large organization and thus a relatively larger reorganization. The consent of the employee participation body is necessary for the social plan to be applied to the reorganization.
If there is no social plan applicable to the organization, as an organization you encourage the employee to find another job and resign or through a mutual agreement termination agreement. Below are some practical options you can apply as an employer.
1. Encourage the employee in finding a new job by:
– Provide assistance with job applications (letter, resume, interview);
– release from work to give space and time for orientation for a new job;
– option to deviate from the statutory notice period;
– give option to pay out wage costs saved by early termination;
– Relaxing the relationship and/or competition clause;
– provide a positive reference from the employer.
2. Termination agreement/settlement agreement by mutual consent. This includes the following elements:
– the transition allowance;
– where the initiative to dissolve lies. The employee retains the right to WW if the mutual agreement states that the agreement was made at the initiative of the employer;
– Whether there is additional compensation or a different exit date (which is further into the future). See also items 3 and 4 of Option 1 above;
– Whether there is exemption from work.
Given the practical examples, a large proportion of redundancy requests to the UWV end at the formal application stage. After it becomes clear which employees are potentially redundant, it is important to meet with each employee individually to discuss the various options.
In addition to applying for dismissal through the UWV, as an employer you have the option of offering a termination agreement – also known as a settlement agreement.
Entering into a termination agreement with an employee has the advantage that the statutory re-employment condition (which applies to UWV dismissals) does not apply. In fact, if there are vacancies within six months that need to be filled anyway, employees can be used for this, without the employer having to fear for the validity of the earlier dismissals. A termination agreement must include a 2-week reflection period for the employee. If you do not put this in the termination agreement, the reflection period is always 3 weeks. For more information about dismissal by mutual agreement and/or drafting a termination agreement, visit the website of the
Note!
In the individual negotiation with the employee, some arrangements can be somewhat modified according to his or her preferences. It is then important that the employee adhere to the confidentiality clause included in the settlement agreement. Tips!
Tip! engage individually with each employee to properly answer or communicate specific questions or cases. Want to know more about how to start a conversation with an employee about this? We have a More interested? Email us at

Step 16: Conduct placement interviews

Placement interviews are conducted at least with employees who are in scope of the resourcing processes, redundancy, selection interviews or directly supernumerary. This is done both when an employee is placed and not placed. However, it is advisable to engage in discussions with all other employees as well. This contributes to the sustainable embedding of the new organization. These conversations can be conducted by the new manager and HR. As an illustration, see below two different scripts for placement interviews.
Sample script for conversation with an employee who well has been placed:
The follow-up interview/acquaintance interview will take place shortly thereafter with future supervisor. There is then room for the following topics: education, career, personal circumstances and salary classification.
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Sample script for interviewing an employee who is not is posted:
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It is important to follow up on the conversation, the follow-up conversation, within 2 weeks with the current supervisor.

Step 17: Submit a formal resignation request to the UWV

To ensure that you legally follow the right steps and avoid (strategic) sick calls, it is wise to submit a formal resignation request to the UWV. Reorganization is a drastic remedy that is not easily endured by an employee who is declared redundant. It can sometimes even lead to a more structural form of disability. A formal resignation request submitted a day before the sick call can prevent the (calculated) breakdown from being affected. You have the option of entering into negotiations with individual employees after the formal resignation.
The UWV website clearly describes how to request formal dismissal for good cause. Click for the reference.
When you submit an application for dismissal for economic reasons, you must submit an application to the UWV, which consists of three parts. Only when the complete application has reached the UWV will they process it. On the UWV website you will find a and more information on the content of the application forms (digital).
If you intend to negotiate a termination agreement with employees after submitting the resignation request, you will need to file a “provisional resignation request” and “postponement request” with the UWV.
Note!
Submitting the resignation application to the UWV is a time-consuming process, short deadlines and it requires a lot of information from the financial side. From the UWV you will receive all kinds of questions on your application which you must answer in time. Make sure you plan this well and seek cooperation with the person responsible for finance.

Step 18: Termination and settlement

After the termination of the employment contract is final, it is important to settle the employment relationship appropriately. Examples include:
If the UWV has given permission for the dismissal and there is no prohibition on termination, the employment contract can be terminated by the employer. This must be done within the period of validity of the permission (usually eight weeks). Note that the notice period can be different for employee and employer.

Step 19: Attention to persistent employees

During the reorganization process, attention is usually paid to the colleagues who lose their security and have to start looking for a new job. Not only do they suffer from the dismissal, but colleagues who are allowed to stay also experience this burden in more ways than one. Often the focus comes to be entirely on the employees who have to leave the organization, and attention to the remaining employees is lacking.
A common mistake is the thought “they are lucky to be able to stay.” In addition to the redundant employees, those left behind are also experiencing stress and looking for confidence in the future.
Our webinar “Communicating in Reorganizations” describes how grieving during and after a reorganization process is important to the success of the change. Insufficient attention to those left behind is sometimes even more damaging than to the employees who have to leave the organization because of the reorganization. This can result in short- and long-term loss of organizational continuity. Some examples of this are loss of motivation, loss of trust in the organization which reduces commitment, mutual complaining and loss of productivity.
Tip!
Think carefully about how the work will be redistributed after the final rollout of the organization. The new situation will look different. What will we focus on later and how will we distribute this work with the employees who remain? Communicate clearly and concretely with your employees how this will be done. You can do this by organizing work sessions or individual conversations with employees per team or department. Also think carefully about the (work) transfer of the departing employees to the remaining employees. In the webinar “Communicating during reorganizations” you will find more about the communicative steps to take in times of reorganization. If you want to know more about this, please keep our in the eye or email us your interest to

Step 20: Evaluating the reorganization

Finally, after the reorganization process is complete, it is important to spend time evaluating both the process and the outcome of the reorganization. The organization first needs time to reinvent itself and get used to the new processes and collaborations before you evaluate the reorganization process.
“Without action one cannot learn, and without learning one cannot take action.”
Reg Revans (former British actor)
What did we learn from this as an organization? To achieve a good evaluation, the following actions can be taken:
TIP!
Communication tip! To keep employees involved even after the reorganization, it is a good idea to create a summary of the evaluation and share it with employees.

Want to know more about Rvdb and our services?

At Rvdb, we have a clear vision of being an employer and therefore of reorganization. That is not to say that we see an approach that works everywhere. Every transformation requires customization. Our approach is unique because, on the one hand, we are very aware of the differences between organizations and can therefore provide effective customization and, on the other, because of the unique added value of our professionals.
Our HR professionals have been on both sides of the table and know how much further it goes than thinking up a plan.
In practice, it is not only important to properly guide a reorganization or transformation in terms of content. At least as important is agility and sensitivity during implementation. Sensing the undercurrent within an organization and making room to listen to it. That is exactly what distinguishes our professionals.
The focus of Rvdb is people-oriented transformation and reorganization. Do you have a change issue or would you like to discuss human-centered transformation and reorganization? If so, please contact us without obligation by sending a message to or call
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What do we do as an HR Consultancy?

You need someone who thinks strategically and acts practically when it comes to substantive HR issues. Our Rvdb business consultants can assist you as project leader or advisor, for example for specific projects, when structural implementation is too much, when flexibility in hours is needed or when the issue is not yet completely clear. Whether the subject is talent management, strategic personnel planning, reorganization, performance management or hr strategy, they have the right expertise. They are hr shapers for your organization and always provide a solution tailored to your needs and organization Click on the themes and read what the can do for you or
Want to know more? Then contact us via a message to or call
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Absenteeism - Rvdb
Absenteeism – Rvdb

What can our HR Interim professionals do?

Rvdb employs a talent pool of over 50 hr interim professionals. Professionals who dare to break through the status quo. Professionals who are eager to develop themselves because they make an impact, are successful and get the best out of your organisation. The hr interim professionals are deployed in roles such as hr project leader, hr officer, hr advisor and hr business partner. However, they never come alone. Due to the large Rvdb constituency, they always bring a bucket full of knowledge and experience.
Want to know more? Then feel free to contact us via a message to or call +31 (0)88 55 21 200.