Outplacement under Dutch dismissal law
Outplacement refers to professional career guidance and job search support provided to employees who are being made redundant. Under Dutch law, an employer who dismisses an employee for business economic reasons has a duty to make reasonable efforts to help the employee find alternative employment. This duty is rooted in the principle of good employer practices (goed werkgeverschap) under Article 7:611 of the Dutch Civil Code, as well as the re-integration obligations in the broader sense (herplaatsingsverplichting) under Article 7:669 paragraph 1.
Outplacement is commonly included in the social plan as one of the measures to mitigate the impact of collective redundancy. It may be offered through an outplacement bureau and can include career coaching, CV training, interview preparation, network access, and targeted job search support. The cost is borne by the employer.
Deduction from the transition payment under Dutch law
Employers who provide outplacement services may - under certain conditions - deduct the cost from the statutory transition payment (transitievergoeding). This is regulated in Article 7:673 paragraph 6 of the Dutch Civil Code and the associated Transition Payment Decree (Besluit transitievergoeding). The deduction is only permissible if: (1) the employee has given prior written consent to the deduction; (2) the costs are genuinely incurred; and (3) the deduction does not reduce the transition payment below zero. In practice, employers often make the outplacement budget available as an addition to the transition payment rather than a deduction from it, to avoid disputes.
Outplacement in settlement agreements under Dutch law
In individual terminations by mutual consent via a vaststellingsovereenkomst, outplacement is frequently negotiated as part of the package. An outplacement budget of €5,000 to €15,000 is common in Dutch practice, depending on the employee's seniority and the employer's resources. Outplacement expenditure may also qualify as costs that reduce the transition payment obligation if properly structured. Legal advice from an employment lawyer in the Netherlands is recommended to structure the arrangement correctly.
Under most social plans in the Netherlands, employees made redundant remain on the payroll of the enterprise during the outplacement period, and the employer pays the costs of career guidance and retraining directly. The social plan typically provides that the enterprise will first seek to place redundant employees in suitable internal vacancies, taking into account personal circumstances, seniority, health, and age; external outplacement is offered only when internal redeployment proves impossible. This emphasis on internal mobility reflects the broader Dutch approach to reorganisations, which the Ministry of Social Affairs and Employment considers an effective instrument for reducing the number of forced dismissals - although in practice most Dutch workers are reluctant to accept imposed geographic and professional mobility unless compensated by increases in pay, status, or job security.